Microsoft is investing $296.81 million by 2027 in South Africa to enhance cloud and AI infrastructure, upgrade data centers, and support local skills development. This initiative is part of a larger $80 billion global investment in cloud and AI technologies, with positive stock performance indicators across Wall Street.
Microsoft has announced a strategic investment of 5.4 billion rand (approximately $296.81 million) in South Africa, aimed at enhancing cloud and artificial intelligence (AI) infrastructure by 2027. This initiative aims to address the increasing demand for Azure cloud services in the region, focusing on upgrading existing data centers in Johannesburg and Cape Town, which were initially part of a $1.1 billion investment over the past three years.
The upgrades will enable the data centers to better accommodate the high computational requirements of AI, facilitating access to advanced AI solutions for businesses and governmental organizations. Alongside this infrastructure development, Microsoft is committed to enhancing human capital by funding technical certification exams for 50,000 South Africans, covering in-demand digital skills such as cloud architecture, AI, and cybersecurity.
This investment is part of Microsoft’s broader global strategy, which involves spending approximately $80 billion on data center development by Fiscal 2025. Notably, over half of this budget will be focused on projects within the U.S., while significant portions target international expansions, including a $700 million cloud data center initiative in Poland and €3.2 billion allocated for AI advancement in Germany. Additionally, Microsoft is investing $3 billion in India to improve cloud and AI infrastructure, while also committing to train 10 million individuals in AI skills by 2030.
On Wall Street, Microsoft’s stock, currently priced at $507.54, has received a Strong Buy consensus rating, stemming from 28 buy recommendations and three hold ratings within the last three months. Investors are optimistic, believing the stock has a potential upside of 27.88%, following a 10.8% increase in shares over the past quarter.
Microsoft’s significant investment in South Africa underlines its commitment to expanding cloud and AI infrastructure in response to growing regional demand. By upgrading data centers and funding skill certifications, Microsoft is not only enhancing technological capabilities but also investing in the local workforce. This initiative aligns with broader global strategies that bolster Microsoft’s leading role in cloud and AI technologies, benefiting stakeholders and regional economies alike.
Original Source: www.tipranks.com
