Microsoft expands data centres and digital skills
Earlier this year, Microsoft announced a R5.4 billion ($313 million) investment in AI‑optimised data centres in South Africa. These facilities will feature high‑performance GPU infrastructure for large‑scale computing, including machine learning and AI applications. This investment will enhance Microsoft’s existing Azure data centres in Johannesburg and Cape Town, where the company has previously invested R20.4 billion ($1.185 billion).
The expansion reflects the growing demand for AI and cloud services in Africa, with businesses, governments, and entrepreneurs increasingly going digital. Microsoft is expanding its presence to compete with Amazon Web Services, Google Cloud, and Huawei, all of which are also making significant strides in the region.
Microsoft understands that infrastructure is not enough. Without brains to utilise the technology, investment will not yield the impact it was envisioned to have. It has therefore tied its infrastructure expansion to an ambitious skilling plan.
Microsoft has committed to upskilling 50,000 South Africans in digital and AI skills through certification courses in areas such as cybersecurity, cloud architecture, and data science. In addition to this initiative, Microsoft aims to skill one million individuals by 2026, which will enable many South Africans to benefit from the transition to cloud and AI‑powered economies.
Leadership experience and national priorities
Vukani Mngxati has more than 25 years of leadership experience in enterprise modernisation and innovation. At Accenture, he advanced to the position of Chief Executive and Board Chairman for Africa, where he was responsible for overseeing technology adoption for both public and private sector clients. His entrepreneurial background has also given him valuable insights into the challenges faced by small companies when adopting advanced technologies.
In his first statement as CEO of Microsoft South Africa, Mngxati called it a proud moment and highlighted his priority of empowering businesses to unlock their potential through cloud technology and AI. He expressed confidence in creating a significant impact in South Africa by leveraging global best practices and collaborating with local partners.
His new appointment is closely tied to national development needs. The South African government prioritises digital skills, innovation ecosystems, and tech‑enabled services. For Microsoft, this represents an opportunity to showcase its role in driving success, while for Mngxati, it involves aligning global strategy with local context.
One of the biggest challenges is ensuring that the adoption of cloud technology and artificial intelligence (AI) spreads beyond large corporations and banks to include medium and small‑scale enterprises. In South Africa, cloud adoption is uneven, and many smaller organisations are hesitant to adopt these technologies due to concerns about costs or a lack of technical expertise.
Looking ahead
Microsoft’s hiring of Mngxati underscores its commitment to South Africa as a hub for digital growth. The company has invested over $1.5 billion in infrastructure and plans to dedicate an additional $313 million for expansion. This reflects Microsoft’s long‑term confidence in the nation. Additionally, the firm aims to teach digital skills to one million citizens, illustrating its focus on both market expansion and fostering prosperity for companies and individuals.
For Mngxati, success will be determined by the tangible outcomes of investments, not just the number of data centres built. Key metrics will include job creation, innovation growth, and the adoption of cloud and AI solutions in the economy. His leadership will focus on combining international expertise with South Africa’s unique economic challenges, including disparities, unemployment, and infrastructure deficits.
South Africa has the potential to enhance its position in the global technology sector and establish itself as a leader for multinational companies interested in investing in both infrastructure and human resources, provided the plan is successful. Mngxati believes that the coming years will be vital in demonstrating that this approach can foster sustainable and inclusive growth, along with a robust digital economy.