Microsoft has announced plans to invest 5.4 billion rand, equivalent to approximately $296.81 million, in South Africa by 2027 to enhance its cloud and artificial intelligence (AI) infrastructure.

Brad Smith, Microsoft's Vice Chair and President, emphasized the company's commitment to equipping South Africans with essential technology skills to foster a technology-driven future.

Microsoft has set ambitious sustainability goals, aiming to be carbon-negative, water-positive, and zero waste by 2030, while maintaining a significant renewable energy portfolio.

In 2024, Microsoft trained over 150,000 individuals in digital and AI skills, with 95,000 receiving certifications and 1,800 securing employment through its Skills for Jobs program.

South Africa is emerging as a key hub for data centers, driven by the increasing integration of AI technologies across various industries, including finance, healthcare, and agriculture.

The company has a longstanding commitment to South Africa, having contributed over $100 million in software and educational resources to local institutions and nonprofits over the past year.

As Microsoft continues to expand its presence in South Africa, it aims to build a robust AI economy that can drive rapid growth in the digital technology sector.

This investment aims to meet the growing demand for Azure cloud services in the region and support the establishment of data centers to handle high computational needs.

South African President Cyril Ramaphosa welcomed this investment as a significant sign of confidence in the country's economic potential, especially amidst recent tensions with the U.S. administration.

Microsoft's AI infrastructure will adhere to its AI Access Principles, ensuring responsible and inclusive access to technology that benefits the public good, while also committing to sustainability goals.

These training programs are conducted in collaboration with South Africa's Youth Employment Service (YES), which focuses on placing talented youth from disadvantaged backgrounds into jobs.

Smith acknowledged the financial barriers many young people face in affording certification exams, highlighting the need for support to ensure equitable access to these opportunities.