Tech giant Microsoft will invest $298 million in artificial intelligence (AI) and data center infrastructure in South Africa, the company’s vice-chair, Brad Smith, announced Thursday.
This latest commitment builds on Microsoft’s $1 billion investment in data centers across the country. In January, the company also pledged to provide one million South Africans with AI and cybersecurity training by 2026.
“We are investing more to expand our AI and data center footprint here,” Smith said at a conference in Johannesburg. Additionally, Microsoft will fund 50,000 individuals to pursue further courses and certification exams in cloud architecture, AI, and cybersecurity.
A Strategic Investment Amid G20 Preparations
Speaking at the same event, South African President Cyril Ramaphosa called the investment “momentous,” highlighting its significance as the country prepares to host the G20 summit in November.
“This comes at a pivotal time for us,” Ramaphosa said. “To have an investment of such enormous proportions is truly significant.”
However, the pledge also comes amid heightened tensions between South Africa and the U.S. Last month, President Donald Trump froze aid to the country over policy disagreements, including a recent land ownership law.
Notably, U.S. Secretary of State Marco Rubio and Treasury Secretary Scott Bessent were absent from preliminary G20 talks in Johannesburg and Cape Town last month.
Joking about the political climate, Ramaphosa quipped to Smith, “I said to Brad: you are very brave,” before praising Microsoft as “an American company with an African heart.”
South Africa’s AI Vision
Ramaphosa emphasized the global race to harness AI’s potential, stressing that its development must be inclusive and equitable.
As part of its G20 presidency agenda, Pretoria is advocating for an “equitable, inclusive, and just” approach to AI development, ensuring that Africa benefits from technological advancements.
“We are committed to ensuring that the adoption of new technologies catalyzes and boosts Africa’s growth and industrialization,” Ramaphosa said.