Microsoft (MSFT) disclosed plans to invest 5.4-billion-rand ($296.81 million) in South Africa by 2027 to enhance its cloud and artificial intelligence (AI) infrastructure. With this investment, MSFT aims to meet the growing demand for its Azure cloud services in the region.
Particularly, the company will upgrade its existing data centers in Johannesburg and Cape Town, originally built as part of a $1.1 billion project over the last three years. These centers can handle AI’s high computing demands, helping businesses, and governments easily use advanced AI solutions.
In addition to infrastructure development, MSFT is investing in human capital. The company plans to fund technical certification exams for 50,000 South Africans in high-demand digital skills such as AI, cloud architecture, and cybersecurity.
Microsoft’s $80 Billion Global AI Push
This investment aligns with Microsoft’s global AI expansion strategy to spend about $80 billion on data center development in Fiscal 2025. Over half of this amount is allocated to U.S.-based projects, with the rest supporting international expansion.
As part of this project, the company recently revealed a $700 million cloud data center project in Poland. Also, MSFT pledged €3.2 billion to AI boost in Germany. Along with these, Microsoft is injecting $3 billion in cloud and AI infrastructure in India and plans to train 10 million people in AI skills by 2030.
The company’s focus on expanding its cloud and AI capabilities reflects the growing importance of these technologies in driving growth and innovation.
Is MSFT Stock a Good Buy?
Turning to Wall Street, MSFT stock has a Strong Buy consensus rating based on 28 Buys and three Holds assigned in the last three months. At $507.54, the average Microsoft stock price target implies 27.88% upside potential. Shares of the company have gained 10.8% in the past three months.
