Microsoft will invest an additional 5.4 billion rand ($297 million) in South Africa by the end of 2027 to expand its cloud and artificial intelligence capacities in the country.
The mentioned company vice chairman Brad Smith made the specified statement at an event in Johannesburg on Thursday, March 6, ahead of the upcoming South African investment conference.
It’s worth noting that Microsoft, based in Redmond, Washington, has already invested 20.4 billion rand in South Africa, which is the most industrialized country on the continent. These financial injections are expected to be a welcome boost for the economy of the mentioned state.
Microsoft said the money would pay for certification exams for 50,000 young people in digital skills over the next 12 months. These funds are expected to help foster innovation, economic growth, and workforce development.
It’s worth noting that South Africa is currently showing a high level of interest in raising private investment. In this case, the main goal is to accelerate economic growth. For the past more than a decade, South Africa’s gross domestic product (GDP) has been increasing by less than 1% annually on average.
Microsoft was one of the first large technology companies to build data centers in South Africa. Other firms such as Amazon and Google have followed suit.
Microsoft currently has data centers in Johannesburg and Cape Town. Last year, the technology giant announced its intention to build a corresponding functional facility at Centurion in the South African province of Gauteng. Microsoft has also agreed to build a geothermal-powered data center in Kenya. The cost of this facility is $1 billion.
The demand for data centers has been showing growth recently. The corresponding tendency is associated with the active development of artificial intelligence. At the same time, the evolution of AI makes the issue of cybersecurity more relevant. Scammers also have access to artificial intelligence tools, which is why their activities have become more sophisticated. Personal awareness of users is important to counteract the relevant threat. For example, an Internet search query such as how to know if my camera is hacked will allow anyone to get information about signs of unauthorized access to the device. Digital literacy is an effective tool for combating cybercrime. This knowledge should be updated periodically, as criminals seek to use the most advanced technologies in their activities, which are constantly evolving and changing.
Cyril Ramaphosa, President of South Africa, said that the investments announced by Microsoft signal to the business community and investors that the country’s economy still has immense potential and that it is a favorable place to do business, where financial injections are secure.
