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Gauteng hails Microsoft’s major AI infrastructure investment

By Akani Nkuna

Gauteng has expressed strong support for Microsoft’s R5.4 billion investment in Artificial Intelligence (AI) infrastructure in South Africa.

The province on Sunday praised the initiative as a significant step forward advancing digital innovation, boosting economic growth and equipping the workforce with skills for the evolving job market.

The investment builds on the R20.4 billion Microsoft committed in 2023 to establish South Africa’s first enterprise-grade data centres in Johannesburg and Cape Town.

During the investment announcement, Gauteng premier Panyaza Lesufi highlighted the need for skills development to future-proof the workforce, focusing on aligning education with economic goals and addressing skills gaps in sectors such as construction, engineering and entrepreneurship.

“This investment will help us foster a skilled workforce, it will also help unlock new opportunities for innovation, and economic growth, which will give us a competitive advantage on the global stage”, he said.

The newly launched programme will build on Microsoft’s AI skilling initiative in South Africa by funding certification exams for 50,000 young individuals in high-demand digital skills over the course of the next year.

The programme is designed to enhance their career prospects and address the growing need for skilled workers in fields such as artificial intelligence, cloud computing, data analysis and other emerging digital sectors.

President Cyril Ramaphosa described the investment as a strong endorsement of South Africa’s economy and its potential for growth. He emphasized that Microsoft commitment reflects the global business community’s confidence in the country’s economic stability, investment environment and future prospects.

“The strategic investment announcements made by Microsoft today as further testimony to this enduring confidence.

“They signal to the business and investor community that South Africa’s economy continues to hold immense potential and that it is a favourable place to do business where their investments are secure,” said Ramaphosa.

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