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Google Expands African Cloud Presence Under Its $1B Plan

  • Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGLGoogle looks to set up an African cloud service as part of its $1 billion investment plan for the continent enabling users to store their data in the country.

  • Google intensified competition with Microsoft Corp (NASDAQ: MSFT) and Amazon.com Inc (NASDAQ: AMZNAmazon Web Services in Africa's most developed economy by the move.

  • Google-based the cloud infrastructure in South Africa, but users will have the option of where to store their data, Bloomberg reports citing Google Cloud Africa director Niral Patel.

  • South Africa will join Google Cloud’s global network of 35 cloud regions and 106 zones worldwide.

  • Nigeria bars phone companies from sending government or customer information outside the country.

  • Google estimates that the South African cloud region could contribute more than $2.1 billion to the country's economy and support the creation of more than 40,000 jobs by 2030.

  • Google acknowledged building out its African subsea cable and cloud interconnect sites in four cities, Cape Town, Johannesburg, Lagos, and Nairobi, to provide complete cloud capability for the continent.

  • In July, Microsoft rallied other big-name cloud-computing providers to urge the U.S. to spread its spending on such services widely.

  • Microsoft targeted Amazon's dominance in such contracts by the move.

  • Amazon dominated the cloud-infrastructure industry with a 39% share of the 2021 global market, ahead of Microsoft in the second position with a 21% share.

  • Amazon's cloud had a 47% share of the 2021 U.S. and Canada public-sector market orders, ahead of 28% for Microsoft.

  • Price Action: GOOG shares traded lower by 2.38% at $99.97 on the last check Wednesday.

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