Microsoft to Invest $297 million in AI and Cloud Expansion in South Africa

The tech giant strengthens its presence in the country, supporting digital skills development and economic growth.

Microsoft. Photo by GERARD JULIEN/AFP via Getty Images files. Portal ERP South Africa. 

Microsoft has announced a new investment of 5.4 billion rand ($297 million) in South Africa by the end of 2027, aiming to expand its cloud and artificial intelligence (AI) capabilities in the region.

The announcement, made by Vice Chairman Brad Smith in Johannesburg, comes ahead of a key South African investment conference. This commitment adds to the 20.4 billion rand Microsoft has already invested in Africa’s most industrialized economy, reinforcing the company’s long-term vision for the region.

As part of this initiative, Microsoft will fund 50,000 digital skills certification exams over the next year, fostering workforce development, innovation, and economic growth.

South Africa has been actively seeking private sector investment to boost an economy that has struggled with low growth rates for over a decade. Microsoft was one of the first major tech firms to establish data centers in the country, paving the way for others such as Amazon Web Services (AWS) and Google Cloud.

The company currently operates data centers in Johannesburg and Cape Town and is set to expand further with a new facility in Centurion, Gauteng. Microsoft’s commitment extends beyond South Africa, with a $1 billion geothermal-powered data center planned for Kenya.

South African President Cyril Ramaphosa welcomed the investment, emphasizing its significance for the country’s economy and business environment.

"Microsoft’s investment sends a strong signal to the global business community that South Africa remains a key destination for investment, with a secure and promising economic future," Ramaphosa stated. "This company truly has an African heart."