Global technology giants have announced major investments in South Africa’s artificial intelligence (AI) sector.
The total value of these investments is expected to reach billions of dollars, creating hundreds of thousands of new jobs in the coming years. Among the companies financing these projects are industry leaders such as Microsoft and Google.
Powering AI: The Focus on Data Centers
These investments will be directed toward data centers that provide the computational power needed to run AI models.
Microsoft President Brad Smith explained that AI consists of three main layers: infrastructure, models, and applications.
“You build the infrastructure so that people will build AI models, you use the models to build applications, and when you use the applications, then you can expand further.”
Smith made this statement at a press conference held in Sandton in March, which was also attended by South African President Cyril Ramaphosa.
Microsoft’s Multi-Billion Rand Commitment to Infrastructure and AI Training
At the event, Microsoft announced a 5.4 billion rand investment to expand data center infrastructure in South Africa—on top of its existing 20.4 billion rand investment.
Part of the funding will be used to train 50,000 individuals in AI skills and help them earn Microsoft certifications.
The training program will cover:
- AI fluency
- AI engineering
- AI systems design
- Cloud architecture and cybersecurity
Microsoft aims to equip 1 million South Africans with AI skills by 2026.
Google Launches Its First African Cloud Region
Google officially launched the Johannesburg Cloud Region, marking its first cloud region in Africa.
While Google did not disclose the exact investment amount, data management firm Tregter estimated the value to be around 2.5 billion rand.
In addition to providing infrastructure, Google is also partnering with South African data center providers to further support local tech development.
Cassava Technologies to Build Africa’s First AI Factory
Cassava Technologies announced plans to enhance South Africa’s data centers using Nvidia AI computing and to build Africa’s first AI factory.
Key elements of this investment include:
- Deployment of Nvidia GPU-based supercomputers
- Faster training and fine-tuning of AI models
- Establishment of new data centers in countries like Egypt, Kenya, Morocco, and Nigeria
- Offering AI-as-a-Service through an ultra-low latency fiber optic network
Cassava’s founder, Strive Masiyiwa, emphasized:
“We must build digital infrastructure for the AI economy. African entrepreneurs and researchers should no longer have to rely on infrastructure outside the continent to turn their ideas into reality.”
These investments will not only boost technological capacity but also promote employment, education, and economic development.
South Africa is positioning itself to become the AI leader of the African continent.