Tech giant Microsoft has announced a major investment of $298 million in artificial intelligence (AI) and data center infrastructure in South Africa. The announcement was made by the company’s vice-chair, Brad Smith, during a conference in Johannesburg on Thursday.
This initiative builds upon Microsoft’s previous commitment to provide AI and cybersecurity training to one million South Africans by 2026. According to Smith, the company is expanding its presence in the country to support technological growth and digital transformation.
“We are investing more to expand our AI and data center footprint here,” Smith stated, highlighting that Microsoft has already invested $1 billion in South African data centers.
As part of this commitment, Microsoft will also sponsor training for 50,000 individuals, offering advanced courses and certifications in cloud computing, AI, and cybersecurity to strengthen the country’s digital workforce.
Speaking at the same event, South African President Cyril Ramaphosa welcomed the investment, emphasizing its significance as the country prepares to host the Group of 20 (G20) summit in November.
“This is a momentous occasion for us,” Ramaphosa remarked. “An investment of this scale is a testament to the confidence in our country’s technological potential.”
The investment comes amid strained relations between South Africa and the United States. Last month, U.S. President Donald Trump froze financial aid to South Africa, citing concerns over recent policy decisions, including land ownership reforms. Additionally, key U.S. officials, including Secretary of State Marco Rubio and Treasury Secretary Scott Bessent, were absent from preliminary G20 meetings in Johannesburg and Cape Town.
Despite this backdrop, Ramaphosa praised Microsoft for its continued commitment to the country. “I told Brad, ‘You are very brave,’” he joked, describing Microsoft as “an American company with an African heart.”
He further emphasized the importance of AI in shaping the future, noting that its development must be inclusive and accessible to all. “The world is racing to harness the potential of AI,” Ramaphosa said. “We must ensure that its benefits are shared equitably so that no one is left behind.”
As South Africa takes on its role in the G20, the country is prioritizing the responsible and inclusive development of AI to drive industrialization and economic growth across Africa. “We are committed to using new technologies to accelerate progress and create opportunities,” Ramaphosa concluded.
