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Several international tech companies have announced significant investments in artificial intelligence (AI) infrastructure in South Africa, totaling billions. This initiative promises to create hundreds of thousands of jobs in the coming years.
Microsoft and Google are among the key players investing in the country’s emerging AI sector. The infrastructure investments primarily focus on data centres, which provide the necessary computing power to run AI models.
At a March press briefing in Sandton, Microsoft President Brad Smith outlined the three primary layers of AI: the infrastructure layer, the model layer, and the application layer. He emphasised the importance of building infrastructure to facilitate the development of AI models, which in turn lead to applications.
Smith announced that Microsoft would invest R5.4 billion to expand its data centre footprint in South Africa, building on an existing R20.4 billion investment. A portion of this new investment will be dedicated to providing access to AI courses for 50,000 people, covering skills such as AI fluency, AI engineering, and AI systems design. The company aims to provide AI skills to one million South Africans by 2026.
In a separate but equally significant move, Google launched its Johannesburg cloud region, the first in Africa. While the exact investment amount was not disclosed, data management company Tregter estimated it at R2.5 billion. This infrastructure will not only enhance Google’s capabilities but also support South African data centre providers through partnerships.
Google’s President for Europe, the Middle East, and Africa, Tara Brady, highlighted the potential to create 300,000 jobs and contribute R1.7 trillion to the South African economy. He noted that South Africa’s high unemployment rate presents a unique opportunity to train and employ a large workforce.
Adding to the momentum, Cassava Technologies recently announced plans to build Africa’s first AI factory by upgrading its data centres with Nvidia AI computing technology. The company plans to deploy Nvidia-powered computing and AI software across its facilities in South Africa, followed by expansions to Egypt, Kenya, Morocco, and Nigeria.
Cassava’s founder, Strive Masiyiwa, emphasised the need for digital infrastructure to support Africa’s AI economy, stating that the AI Factory will empower businesses, startups, and researchers with access to advanced AI resources.
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The collective investments from Microsoft, Google, and Cassava Technologies signal a strong commitment to advancing South Africa’s AI landscape. These initiatives not only promise economic growth but also position the country as a potential leader in AI on the continent.
