Microsoft will invest R5,4 billion by 2027 to expand its cloud and artificial intelligence (AI) infrastructure in South Africa, increasing the country’s data centre capacity to meet rising demand for Azure cloud services.
The investment follows a R20,4 billion commitment over the past three years, which established South Africa’s first enterprise-grade data centres in Johannesburg and Cape Town.
The expansion aligns with the company’s broader mission of supporting South Africa’s technological advancement, said Microsoft’s Vice Chair and President Brad Smith. “The new investment will empower start-ups, multinational corporations and government entities by providing enhanced access to cloud and AI solutions. The initiative is expected to drive innovation and optimise service delivery across the South African economy by improving operational efficiency and productivity.”
Energize contacted Microsoft to understand how the company plans to power the expansion, given South Africa’s constrained electricity supply. A company representative said there is “nothing to share” beyond what was included in the official announcement but added that more details will be shared when available.
Globally, concerns about the energy consumption of AI and cloud infrastructure have grown. According to the International Energy Agency (IEA), electricity demand from data centres, AI and cryptocurrency could more than double by 2026. The IEA estimates that data centres, which consumed about 460 TWh globally in 2022, could surpass 1 000 TWh by 2026.
