Microsoft has announced plans to invest $300 million by the end of 2027 to expand its cloud and artificial intelligence (AI) infrastructure in South Africa, responding to increasing demand for Azure services in the region. Microsoft Vice Chair and President Brad Smith announced this at an event in Johannesburg ahead of an upcoming South African investment conference. 

This latest commitment builds on Microsoft’s previous $1.1 billion investment over the past three years, which facilitated the establishment of South Africa’s first enterprise-grade data centers in Johannesburg and Cape Town. The initiative is designed to support startups, multinational corporations, small and medium-sized enterprises (SMEs), and government entities in leveraging cloud and AI solutions to enhance operational efficiency, optimize service delivery, and drive innovation within the country’s economy.

Welcoming the announcement, South African President Cyril Ramaphosa emphasized the significance of Microsoft's continued investment in the country, viewing it as a strong endorsement of the local economy. Microsoft Vice Chair and President Brad Smith reiterated the company’s longstanding commitment to South Africa, highlighting its role in helping the country build a future where technology fosters economic growth and equips young professionals with the necessary skills to succeed in an evolving digital landscape.

A key component of this investment focuses on addressing critical skills gaps. According to the World Economic Forum, 60% of companies in emerging economies cite a lack of essential digital skills as a major barrier to technological advancement by 2030. In response, Microsoft has committed to training one million South Africans by 2026. As part of this initiative, the company will fund certification exams for 50,000 young people over the next 12 months in high-demand fields such as AI, data science, cybersecurity analysis, and cloud solution architecture.

In 2024 alone, Microsoft trained more than 150,000 individuals in digital and AI skills, with 95,000 earning certifications and 1,800 securing employment through the company’s Skills for Jobs program. Furthermore, Microsoft has donated and provided over $100 million in discounted software to South African educational institutions, nonprofit organizations, public libraries, and museums over the past year.

The company believes South Africa has the potential to lead Africa’s transition from a consumer-based AI market to one that also produces AI-driven solutions. A recent United Nations report underscored the urgency of infrastructure investments and regulatory frameworks, particularly in connectivity and AI governance, to support this transition. Microsoft's continued investment aims to position South Africa as a hub for digital innovation and economic development on the African continent.