Google has formally opened its first “cloud region” in Johannesburg, which is a major milestone as the tech giant steps up its ambitions to build a strong data centre infrastructure in South Africa and compete with its American rivals, Microsoft and Amazon Web Services (AWS).
Google used Wednesday’s industry event in Johannesburg to emphasise this significant investment to its partners and consumers, even though the data centre region was initially introduced more than a year ago.
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Google’s plan to invest $1 billion across Africa
Google has not revealed the precise amount spent on its Johannesburg facilities, but this move is a component of a larger plan to invest $1 billion USD throughout Africa.
In addition to building data centers, this investment plan also aims to improve terrestrial and subsea fiber infrastructure, including building a submarine cable system that will link South Africa and Australia’s west coast.
Microsoft’s plan to invest R5.4 billion in new data centre infrastructure
This action follows the recent announcement made by Microsoft’s Vice Chairman and President Brad Smith when he shared the stage with South African President Cyril Ramaphosa to declare that it would invest an additional R5.4 billion in new data centre infrastructure in South Africa.
The improvement of capabilities for cloud-based AI applications is the main goal of this initiative.
This fresh investment is not included in the R20.4 billion that Microsoft has previously committed to its Azure data centres in South Africa.
AWS’s investment in data centres in South Africa
In a similar vein, Amazon has spent billions of rand building data centres in Cape Town to better service its AWS clients there.
Since its launch in January 2024, Google claims that the Johannesburg cloud region has been set up to directly assist African companies and global enterprises doing business on the continent.
Its goal is to give these organisations access to cutting-edge technologies so that the area can thrive and innovate.
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Google’s $32 billion acquisition of Wiz
Google’s parent company, Alphabet, on Tuesday announced the taking over of cloud security startup Wiz for $32 billion in cash, its biggest acquisition ever.
This move aims to strengthen Google Cloud’s security offerings, intensifying its rivalry with Amazon Web Services (AWS) and Microsoft Azure.
With cybersecurity and AI reshaping tech, Google’s $32 billion bet on Wiz signals a major push to dominate the cloud computing market.