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In a strategic move that signifies a significant shift within the African technological sector, Google Cloud officially inaugurated its first cloud region in Johannesburg, South Africa, marking a milestone for businesses across the continent. Niral Patel, Google Cloud's director for Africa, announced the operational readiness of the Johannesburg region, emphasizing its potential to spur the African tech ecosystem into the global marketplace.
The launch marks a crucial development as the continent braces for a technological revolution, with the Internet economy in Africa expected to hit a staggering $180 billion by the year 2025. This will account for 5.2% of the gross domestic product, underscoring the digital transformation as a pivotal aspect of Africa's economic future. Google, showcasing its commitment to this growth, has pledged $1 billion to foster digital transformation on the continent.
The opening of Google Cloud services in Johannesburg expands Google’s extensive network to 40 cloud regions and 121 zones, bolstering its service delivery to over 200 countries and territories across the globe. The state-of-the-art Johannesburg region is interlinked with Google's robust and secure network, forged by terrestrial and submarine high-capacity fibre optic cables, which includes collaboration in the Equiano subsea cable system. This system connects various countries along the Western coast of Africa to Portugal and plays a vital role in further improving connectivity and reducing latency for African customers.
The Johannesburg region has already garnered partnerships with notable African enterprises such as Deloitte Africa, FNB, Liquid, MTN Group, and Pepkor, indicating the trust and reliance placed in Google Cloud's infrastructure. The presence of a local cloud region greatly assists these partners in their journey towards digital transformation by providing a suite of high-performance, secure cloud services within close proximity.
This venture into the African cloud space by Google follows the footsteps of other major cloud service providers that have recognized the continent's potential. Huawei introduced cloud computing services here, with Microsoft launching its Azure operations in Johannesburg and Cape Town back in March 2019. Although the Cape Town region has been closed subsequently according to Data Center Dynamics, this highlights the competitive and ever-evolving nature of the market.
Amazon Web Services (AWS) made its foray into sub-Saharan Africa with the opening of its Cape Town region in April 2020, further solidifying the region's importance as a tech hub. Notably, much of AWS's essential technology was developed in South Africa. Oracle, another significant player in the industry, followed by opening its Johannesburg cloud region in January 2022.
In a more recent development, Telkom's BCX collaborated with Alibaba to set up a new cloud region in Johannesburg in 2023, showcasing the city's growing status as a nexus for cloud technology innovation. With each addition, the local cloud service ecosystem becomes richer, offering businesses in Africa more options and greater control over their data sovereignty.
The proliferation of cloud regions within South Africa and across the continent signifies a transformative era for African businesses. Cloud computing is not just an enabler of efficiency and innovation; it is increasingly a fundamental pillar for economic development, startup growth, and global competitiveness. Google Cloud's entry is more than just an investment; it's a signal to the world that Africa is open for tech business, ready to harness the vast potential of the digital age.