• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns

2

Anthropic disables Fable and Mythos AI models after U.S. government bars it from giving foreigners access

3

Melinda French Gates' advice to new IPO millionaires: 'Give half your money away'

1

Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns

2

Anthropic disables Fable and Mythos AI models after U.S. government bars it from giving foreigners access

3

Melinda French Gates' advice to new IPO millionaires: 'Give half your money away'
TechPointCloud

Microsoft Just Made a Big Bet on Africa

By
Jonathan Vanian
Jonathan Vanian
Down Arrow Button Icon
By
Jonathan Vanian
Jonathan Vanian
Down Arrow Button Icon
May 18, 2017, 7:58 PM ET
Twelve Apostles mountain in Camps Bay, Cape Town, South Africa
Beach and Twelve Apostles mountain in Camps Bay near Cape Town in South Africa.Photograph by spooh—Getty Images

Microsoft believes the best way to win more business in Africa is by building giant data centers there.

The business technology giant said Thursday that it planned to open data centers in Johannesburg and Cape Town, South Africa by 2018. By opening data centers in Africa, Microsoft will be able to more efficiently deliver its various services like Office 365 to users in the region.

“We’re excited by the growing demand for cloud services in Africa and their ability to be a catalyst for new economic opportunities,” Scott Guthrie, Microsoft’s executive vice president of cloud and enterprise, said in a statement.

The decision to open a data center facility highlights the growing economic development in Africa, which has caught the attention of big tech companies looking to capitalize. In February, for example, Facebook partnered with local telecommunications companies to install 500 miles of fiber optic cable in Uganda to improve the country’s Internet connectivity and obtain more users.

Get Data Sheet, Fortune’s technology newsletter.

Unlike traditional data centers that businesses typically use to run their IT operations, companies like Microsoft (MSFT) and Amazon (AMZN) operate clusters of data centers that are tethered so they can operate as one mega-facility. These companies maintain several of these vast data center regions to provide their services.

Microsoft and Amazon use them to sell business customers access to computing resources on-demand so they don’t have to operate their own data centers. Some of Microsoft’s products it plans to deliver in Africa include its Azure cloud computing service, Office 365 business software, and Dynamics 365 database services, the company said.

Although companies in Africa can access cloud-based services, those services are typically delivered from data centers located outside of Africa, which could make them slower or more prone to going offline. Microsoft said that by opening data centers in Africa, customers would be able to store their data locally, which could satisfy any regulations prohibiting companies from keeping that data outside the country.

Last year, IBM (IBM) said it partnered with South African IT company Gijima and telecommunication company Vodacom to open a cloud data center in Johannesburg. From Microsoft’s announcement, it appears it is building its own facilities without any involvement from local IT companies or telecommunication providers.

Amazon Web Services currently does not list any African data centers on its website.

A Google spokesperson said that it does not have an African data center but “will continue to aggressively expand our Google Cloud Platform regions over the next few years.”

For more about technology and finance, watch:

Facebook, while not a cloud-computing provider, maintains sophisticated data center regions all over the world and does not currently have such a facility in Africa.

Fortune contacted Microsoft for more information and will update this story if it responds.

About the Author
By Jonathan Vanian
LinkedIn iconTwitter icon

Jonathan Vanian is a former Fortune reporter. He covered business technology, cybersecurity, artificial intelligence, data privacy, and other topics.

See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Whop CEO Steven Schwartz
SuccessMillionaires
The Gen Z cofounder of $1.6 billion Whop says his platform has minted over 650 millionaires—he wants to make work fun and money worries obsolete
By Emma BurleighJune 14, 2026
6 minutes ago
nexstar
CommentaryAntitrust
Nexstar CEO: big tech swallowed local newspapers. Local TV could be next
By Perry A. SookJune 14, 2026
1 hour ago
The hottest debate on Wall Street right now: Does the flood of mega-IPOs and new shares signal a downturn ahead? That depends
InvestingIPOs
The hottest debate on Wall Street right now: Does the flood of mega-IPOs and new shares signal a downturn ahead? That depends
By Jason MaJune 13, 2026
11 hours ago
You can ignore AI giants like SpaceX, but your 401(k) won’t
Investingindex funds
You can ignore AI giants like SpaceX, but your 401(k) won’t
By Stan Choe and The Associated PressJune 13, 2026
12 hours ago
OpenAI hit with multistate probe into possible user harm, days after filing for a highly anticipated IPO
AIOpenAI
OpenAI hit with multistate probe into possible user harm, days after filing for a highly anticipated IPO
By Bernard Condon and The Associated PressJune 13, 2026
13 hours ago
‘It’s not a jailbreak’ — Research leading to U.S. export restrictions on top Anthropic models was for defense, cybersecurity CEO says
AIAnthropic
‘It’s not a jailbreak’ — Research leading to U.S. export restrictions on top Anthropic models was for defense, cybersecurity CEO says
By Jason MaJune 13, 2026
16 hours ago

Most Popular

Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns
Real Estate
Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns
By Sydney LakeJune 13, 2026
1 day ago
Anthropic disables Fable and Mythos AI models after U.S. government bars it from giving foreigners access
AI
Anthropic disables Fable and Mythos AI models after U.S. government bars it from giving foreigners access
By Jeremy KahnJune 13, 2026
1 day ago
Melinda French Gates' advice to new IPO millionaires: 'Give half your money away'
Startups & Venture
Melinda French Gates' advice to new IPO millionaires: 'Give half your money away'
By Emma HinchliffeJune 13, 2026
1 day ago
SpaceX CFO Bret Johnsen quietly engineered its historic IPO and became an overnight billionaire
C-Suite
SpaceX CFO Bret Johnsen quietly engineered its historic IPO and became an overnight billionaire
By Sasha RogelbergJune 13, 2026
1 day ago
Trump expects to sign a deal with Iran on Sunday, but Tehran may want to avoid giving him a gift on his birthday
Middle East
Trump expects to sign a deal with Iran on Sunday, but Tehran may want to avoid giving him a gift on his birthday
By Jason MaJune 13, 2026
14 hours ago
U.S. energy secretary says 7 million barrels of oil exiting Persian Gulf daily, but Chevron CEO rebuts the claim
Energy
U.S. energy secretary says 7 million barrels of oil exiting Persian Gulf daily, but Chevron CEO rebuts the claim
By Jordan BlumJune 12, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.