Microsoft invests R5.4 billion in AI data centres in South Africa

Microsoft President Brad Smith announced a R5.4 billion investment in new data centre infrastructure in South Africa, specifically designed for artificial intelligence workloads. The announcement was made during his visit to Johannesburg at an industry event attended by President Cyril Ramaphosa.

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This investment, revealed on Thursday, will focus on building AI-optimized data centres equipped with powerful GPUs (graphics processing units). Smith, also Microsoft’s Vice Chairman, emphasized that South Africa is receiving a significant allocation of GPUs, reflecting the country’s potential to drive AI adoption across the continent.

To date, Microsoft has invested over R20 billion in its Azure data centres in South Africa.

In addition to the infrastructure investment, Microsoft pledged to sponsor digital skills development for 50,000 individuals, providing them with technical certifications in high-demand areas.

Microsoft South Africa confirmed that further details regarding the new data centre investments will be released in the coming weeks.

President Ramaphosa welcomed Microsoft’s commitment, highlighting the company’s efforts to empower young people with digital skills. He emphasized Microsoft’s “longstanding presence in South Africa” – spanning over 30 years – as a “vote of confidence” in the country’s economy.