Kathy Gibson reports – Microsoft has committed to invest an additional R5,4-billion in its South African cloud and artificial intelligence (AI) data centres.
At the same time, the company has significantly expanded its skills development programme in the country.
Making the announcement this evening, Microsoft co-chair and president Brad Smith points out that the new investment is in addition to the more than R20-billion the software giant has already spent on data centre infrastructure in this country.
He says the new infrastructure, which is expected to be in place by 2027, will specifically be able to handle AI workloads.
“In terms of graphic processing units (GPUs), the chips that power AI, South Africa is getting more than it’s share,” he says.
“That is a reflection of what we believe can be put to use here and, through South Africa, in Africa as a whole.”
This round of investment will enable a wide range of organisations, from start-ups to large multinationals and government entities to access the cloud and AI solutions to improve operational efficiency and productivity, optimise the delivery of services, and drive innovation across the South African economy.
South African president Cyril Ramaphosa comments: “Beyond blazing a trail in the local technology space, the longstanding presence of Microsoft in South Africa is a vote of confidence in our country and in our economy.
“The strategic investment announcements made by Microsoft today stands as further testimony to this enduring confidence. They signal to the business and investor community that South Africa’s economy continues to hold immense potential and that it is a favourable place to do business where their investments are secure.”
Customers across various industries in South Africa and Africa, including financial services, healthcare, retail, agriculture, mining, and public sector, are already reaping the benefits of Microsoft cloud and AI technologies.
“For more than 30 years, Microsoft has been a committed partner to South Africa,” Smith says. “This latest investment is part of our broader focus in helping South Africans build a future where technology drives prosperity and young workers have the skills they need to thrive.”
Lillian Barnard, GM of Microsoft Africa, says South Africa, and Africa as a whole, have a real opportunity to become AI producers instead of just consumers
“We have seen the transformative power of the technology in the country and on the continent.
“AI will literally transcend any other technological innovation, and we believe it is our opportunity as a country and a continent to solve some of our most pressing challenges.
“We believe we have the opportunity to accelerate innovation because now we have technology literally at our fingertips.”
According to a recent United Nations report, urgent infrastructure investments and regulatory frameworks are vital – specifically, investments in connectivity and AI governance frameworks.
By investing in cutting-edge infrastructure and fostering a skilled workforce, South Africa and Africa can unlock new opportunities for innovation, enterprise development, economic growth, and competitive advantage on the global stage.
The AI infrastructure operating in South Africa will be governed by Microsoft’s AI Access Principles.