Microsoft plans $80 billion for AI data centers, including Africa

Microsoft plans $80 billion for AI data centers, including Africa
Microsoft plans $80 billion for AI data centers, including Africa

(Agence Ecofin) – In recent years, competition in the hosting, data storage and cloud services market has gained momentum in Africa with the increasing digitalization of the public and private sectors. Innovating in this environment becomes a guarantee of leadership.

For 2025, Microsoft plans to build a new type of data center around the world, particularly in Africa. Storage infrastructures compatible with artificial intelligence. Friday, January 3, in an article highlighting the new international economic opportunities that the United States can seize by investing in AI, Brad Smith, the vice president and president of Microsoft, declared that the American technology company is in is going to invest around 80 billion dollars for this purpose.

He justified this investment by the need to “train AI models and deploy AI and cloud-based applications worldwide”. Brad Smith, however, clarified that “more than half of this total investment will be made in the United States, which reflects our commitment to this country and our confidence in the American economy.”

The renewed investment that Microsoft is expressing for AI fits with the return of Donald Trump to the White House. In 2019, the American president approved an executive order aimed at strengthening the United States’ lead in the field of artificial intelligence. This executive order focused on federal investments in AI research and improving the accessibility of federal data and computing resources. Five years later, Microsoft is optimistic that the President and Congress will continue to support efforts to support strengthening U.S. leadership in AI.

In an increasingly competitive African hosting, storage and cloud services market, Microsoft’s AI data centers have the potential to optimize its resource management. Using AI and machine learning algorithms, Microsoft could improve areas such as data center cooling systems in real time; reduce IT infrastructure inefficiencies. Actions that should contribute to reduced operating costs, improved energy efficiency and more informed, data-driven decisions while ensuring customers have a better customer experience based on dynamic workload management and scalable and adapted security.

According to a study by Grand View Research, the global data center market generated a revenue of USD 212,533.5 million in 2023 and is expected to reach USD 437,326.2 million by 2030. In Africa, Data Bridge Market Research estimates that the market is expected to reach USD 5,505.69 million by 2030, from USD 2,145.81 million in 2022, driven by the gradual adoption of digital technology by businesses. Revenues of which Microsoft would like to capture the majority.

Muriel EDJO

Published by Sèna DB de Sodji

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The American Equinix plans to invest $390 million in the construction of data centers in Africa

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