Google Cloud holds $90bn
promise for SA

Google is betting big on South Africa’s digital future, projecting R90-billion in economic output resulting from its new Johannesburg cloud region.

“This is not just about tech companies; our cloud infrastructure supports healthcare, education, retail, and financial services,” said Tara Brady, Google president for Europe, Middle East, and Africa, at the formal launch of its cloud region – the industry term for major data centre roll-outs – on Wednesday.

The Johannesburg cloud region, Google’s first in Africa, has already been operational for over a year, embedding itself into South Africa’s digital ecosystem well before this week’s fanfare.

_{Alex Okosi, Google managing director for Sub-Saharan Africa and Tara Brady, Google president for Europe, Middle East, and Africa. Photo: ARTHUR GOLDSTUCK.}

As Alex Okosi, Google managing director for Sub-Saharan Africa, put it, “Cloud computing is the engine that powers economic transformation. Our investment in this region is designed to accelerate digital inclusion, empower businesses, and bring cutting-edge AI solutions closer to African enterprises.”

Okosi stressed Google’s commitment to Africa: “AI alone can contribute $30-billion to African economies, but that opportunity will only be realised if we ensure that cloud infrastructure is accessible, scalable, and secure. We are working closely with governments, businesses, and developers to make this a reality.”

The past decade has seen multinational cloud providers scramble to establish footholds in Africa. Amazon Web Services (AWS) led the charge in 2020, establishing a data centre in Cape Town, while Microsoft followed with its Azure regions in Johannesburg and Cape Town. Huawei, Oracle and NTT have followed, while regional players like Teraco and African Data Centres have also made large investments.

_{Google Cloud region in Johannesburg. Photo: ARTHUR GOLDSTUCK.}

Google took a measured approach, relying on “colocation” agreements – using capacity in neutral data centres – before making the leap to a dedicated region.

“We wanted to ensure we had the right partners, regulatory clarity, and a strong demand base before fully launching our cloud region,” said Okosi.

Brady said in his opening address at the launch that the impact would be widespread.

“We estimate that the Johannesburg cloud region will generate R90-billion in economic output and create over 300,000 jobs in South Africa by 2030,” said Brady.

The launch also coincided with a broader arms race in the cloud computing sector. Barely two weeks before Google’s event, Microsoft announced a fresh R5.4-billion investment into its South African AI and cloud infrastructure.

Microsoft president Brad Smith visited South Africa to make the announcement, alongside President Cyril Ramaphosa.

“South Africa is poised to be a leader in AI and cloud innovation,” said Smith. “Our goal is to create an environment where businesses can thrive and where AI skills development is prioritised.”

Government backing was evident for the Google Cloud region too, with Minister of Communications and Digital Technologies Solly Malatsi, delivering a video address that aligned Google’s investment with the country’s digital ambitions.

“This investment strengthens our digital backbone, enhancing connectivity, data security, and computational power,” said Malatsi. “Lower latency and improved data sovereignty mean that South African enterprises can now compete on a level playing field with the world’s best.”

_{Google Cloud customer Pepkor at the event expo. Photo: ARTHUR GOLDSTUCK.}

The cloud region itself is built with redundancy, meaning it comprises multiple data centres, but details about its exact configuration remain sparse, with Google executives citing security concerns.

“What I can tell you is that we have built this region to ensure high availability, reliability, and security,” said Clayton Naidoo, Google director for strategic missions and partnerships, in response to Gadget. “Our customers can be confident that their data is safe, and their workloads will run with minimal latency.”

Despite these endorsements, the real impact of the cloud region will only become evident in the coming years. Enterprise adoption tends to be slow-moving, particularly when transitioning from legacy on-premise infrastructure. Regulatory concerns around data sovereignty remain a sticking point, with Google stating that it is working on a “case-by-case” basis with governments to navigate compliance issues.

Beyond corporate clients, the biggest question is whether Google’s investment will have a tangible effect on ordinary South Africans. While consumers may experience slight improvements in latency when accessing Google services like YouTube, Google Drive, and Photos, the real promise lies in enabling businesses to develop cloud-native solutions that are tailored to local challenges.

Said Okosi: “We are actively investing in skills training and digital inclusion programs to ensure that no one is left behind. Our aim is to equip individuals and small businesses with the tools they need to compete in a digital economy.”

* Arthur Goldstuck is CEO of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Bluesky on @art2gee.bsky.social.