Tech giant Microsoft has announced two major investments – in South Africa and India – though with two very different focuses. One involves cloud expansion. The other involves afforestation.
Microsoft plans to spend ZAR 5.4 billion (about US$296 million) by the end of 2027 to expand its cloud and AI infrastructure in South Africa to meet the growing demand for Azure services in the region. It has also agreed to purchase 1.5 million tons of carbon removal credits over the next 30 years from a large-scale afforestation project in India.
Microsoft says the South African investment builds on the company’s ZAR 20.4 billion (about US$1.1 billion) investment over the past three years to establish the nation’s first enterprise-grade data centres in Johannesburg and Cape Town.
The latest round of investment will enable a wide range of organisations, from start-ups to large multinationals and government entities, to access the company's cloud and AI solutions.
Earlier this year, Microsoft committed to skilling one million South Africans by 2026, equipping companies, government and youth with the knowledge and tools to create AI solutions to address local challenges with homegrown solutions, while contributing to the nation’s AI workforce and ecosystem.
Microsoft says it will also expand its digital skills initiative over the next 12 months and that, in 2024 alone, more than 150,000 people were trained in digital and AI skills, 95,000 certified and 1,800 secured employment opportunities through Microsoft’s Skills for Jobs programme.
Microsoft’s agreement to purchase carbon removal credits in India was signed with Climate Impact Partners, a provider of carbon markets solutions, and Terra Natural Capital, a firm that offers climate project finance. The credits are tied to the Panna afforestation project in the Madhya Pradesh State, India.
The purchase is Microsoft's first in the Indian market and its largest carbon removal purchase in the APAC region to date. The company is reportedly the largest corporate buyer of carbon removal credits in the world.
The project, which covers 20,000 hectares, will involve planting 11.6 million mixed native trees across farm and community land. It also aims to create new sources of income through the planting of fruit trees and the creation of new jobs through nurseries, project implementation and monitoring.
