South Africa: Microsoft will invest $298.7 million to expand its cloud and AI capacity in South Africa by 2027. The software company has now invested $1.1 billion in building data centres in South Africa in the last three-years. It will also put investment in Microsoft South Africa at $1.427 billion in 5 years.
Reportedly, Microsoft announced plans to spend ZAR 5.4 billion by the end of 2027 to expand its cloud and AI infrastructure in South Africa to meet the growing demand for Azure services in the region.
The investment was built on ZAR 20.4 billion in the company over the past three years to establish the first enterprise-grade data-centres of the nation in Johannesburg and Cape Town. The round of investment will enable a wide range of organisations, from start-ups to large multi-nationals and government entities to access the cloud and AI solutions to improve operational efficiency and productivity.
It will also optimise the delivery of services and will drive innovation across the South African economy. It will also provide the access to world-class digital infrastructure, coupled with enhancing the capabilities for the South African workforce that helps in contributing towards a future where AI is seamlessly integrated into every aspect of society, driving growth and innovation.
Microsoft will invest $298.7 million to expand its cloud and AI capacity in South Africa by 2027.
Microsoft has now invested $1.1 billion in building data centres in South Africa in the last 3 years.
This will put Microsoft’s SA investment at $1.427 billion in 5 years. pic.twitter.com/kT3yufu3Lu
— Africa Facts Zone (@AfricaFactsZone) March 7, 2025
Considering this, President Cyril Ramaphosa said that beyond blazing a trail in the local technology space, the longstanding presence of Microsoft in South Africa is a vote of confidence in the country and in the economy.
The strategic investment announcements made by Microsoft stands as further testimony to the enduring confidence. They signalled towards the business and investor community that economy of South Africa continues to hold immense potential and it is a favourable place to do business where their investments are secure.
According to President Ramaphosa, the customers across various industries in South Africa and Africa, includes financial services, healthcare, retail, agriculture, mining and public sector that are already reaping the benefits of Microsoft cloud and AI technologies.
Furthermore, Vice Chair and President of Microsoft – Brad Smith said that for more than 30 years, Microsoft has been a committed partner to South Africa. He added that the latest investment is a part of the broader focus and is helping South Africans in building a future where technology drives prosperity and young workers that have the skills they need to thrive.