Microsoft plans to invest $297 million in South Africa to enhance its cloud and AI infrastructure by 2027. This investment will upgrade data centers in Johannesburg and Cape Town and provide training for 50,000 individuals in critical digital skills. This initiative complements Microsoft’s broader $80 billion global AI development strategy.
Microsoft Corporation (NASDAQ:MSFT) has announced an investment of 5.4 billion rand (approximately $296.81 million) in South Africa by 2027. This commitment aims to enhance the company’s cloud and artificial intelligence (AI) infrastructure to satisfy the increasing demand for Azure cloud services in the region.
The investment includes upgrading existing data centers located in Johannesburg and Cape Town, which were established as part of an earlier $1.1 billion project over the past three years. These upgraded facilities will have the capacity to support AI’s considerable computing requirements, thus facilitating the integration of advanced AI solutions by businesses and governmental agencies.
In conjunction with infrastructure enhancements, Microsoft will also prioritize the development of human capital. The company intends to finance technical certification exams for 50,000 South Africans, equipping them with essential skills in areas such as AI, cloud architecture, and cybersecurity.
This initiative aligns with Microsoft’s broader strategy for expanding its global AI presence, which includes a commitment of approximately $80 billion for data center development in Fiscal 2025. More than half of this funding is designated for projects within the United States, while significant investments are also made internationally.
Recent projects under this initiative include a $700 million cloud data center in Poland and a €3.2 billion investment for AI advancements in Germany. Furthermore, Microsoft plans to allocate $3 billion to bolster cloud and AI infrastructure in India, alongside a goal to train 10 million individuals in AI skills by 2030.
Regarding stock performance, Microsoft’s shares currently hold a Strong Buy consensus rating on Wall Street, based on 28 buy and three hold recommendations in the last three months. The average price target for MSFT stock stands at $507.54, indicating a potential upside of 27.88%. Over the past three months, shares have appreciated by 10.8%.
In summary, Microsoft’s significant investment in South Africa underscores the company’s commitment to enhancing cloud and AI infrastructure to meet regional demand. This initiative also emphasizes the importance of developing digital skills within the local workforce. Coupled with its broader global AI expansion strategy, Microsoft continues to position itself as a leader in the technology sector. Current stock ratings reflect a favorable outlook, suggesting potential growth for investors.
Original Source: markets.businessinsider.com
