Data Centers in Djibouti

Djibouti – The Strategic Subsea Hub for East Africa

Djibouti is the most critical interconnection point for data traffic moving between Europe, Asia, and the Horn of Africa. This market provides a specialized peering environment for organizations requiring ultra-low latency to landlocked Ethiopian markets or resilient subsea transit through the Bab el-Mandeb strait.

Network & Connectivity Ecosystem

Djibouti operates as a high-capacity transit point for global data flows. As of September 2025, the infrastructure remains centered around subsea landing stations that facilitate international connectivity.

Carrier Density & Carrier Neutrality: Carrier count: over 10, as of September 2025. The market is anchored by the Djibouti Data Center, which provides a neutral environment for regional and international telecommunications providers to interconnect. This density supports high-performance transit and peering for the entire Horn of Africa.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions, as of September 2025. While direct local on-ramps for providers such as AWS or Google Cloud (GCP) are currently absent, the market uses high-speed subsea paths to Marseille and Mumbai for cloud connectivity. Private network extensions are standard for reaching these major hubs.

Internet Exchange Points (IXPs): The Djibouti IX (DjIX) serves as the primary exchange point, facilitating local traffic exchange and reducing latency for regional internet service providers, as of September 2025. This reduces the need for local traffic to route through European hubs.

Bare Metal: High-performance compute options are available through providers like Leaseweb and Latitude.sh, who serve the region through partner facilities and nearby hubs, as of September 2025. These services provide dedicated hardware for latency-sensitive applications.

Power Analysis

Djibouti faces specific energy challenges that impact operational costs for high-density data center deployments.

Average Cost Of Power: Industrial electricity is priced at $0.32/kWh, as of September 2025. The power mix is roughly 90% fossil fuels with nearly 10% coming from renewable sources. High costs reflect the market reliance on imported energy to meet more than 70% of total consumption, though this supports a critical hub for international traffic.

Power Grid Reliability: Electrical infrastructure in the capital is generally well-engineered. The grid utilizes redundant sub-stations to support the critical cooling and power requirements of international cable landing stations, as of September 2025.

Market Access, Business & Tax Climate

Djibouti is the primary gateway for digital services in East Africa, leveraging its geographical position to attract international infrastructure investment.

Proximity To Key Business Districts: Data center facilities are centrally located within Djibouti City, providing proximity to the Port of Djibouti and government administrative centers. This location is essential for maritime, logistics, and diplomatic sectors requiring immediate access to international data streams, as of September 2025.

Regional Market Reach: Djibouti is the primary gateway for landlocked East African nations, most notably Ethiopia. It serves a regional population of over 150 million people by acting as the primary point for data entering and exiting the Horn of Africa, as of September 2025.

Tax Advantage For Data Centers: The government offers specialized sales tax exemption certificates specifically for data center operations. This incentive helps manage operational costs and is scheduled for extension through mid-2037.

Natural Disaster Risk

Djibouti maintains a Moderate risk profile with an INFORM score of 5.0 out of 10, as of September 2025. The environment presents specific geological challenges that require purpose-built facility standards.

• Drought: 7.9 (High). Sustained water scarcity affects regional cooling strategies and resource management, as of September 2025.
• Earthquake: 5.4 (Moderate). Seismic activity is a factor due to the location at the junction of three tectonic plates, as of September 2025.
• Tsunami: 4.9 (Moderate). Coastal facilities must account for regional maritime hazards along the Gulf of Aden, as of September 2025.
• Coastal Flood: 4.3 (Moderate). Sea level concerns are material for landing stations located near the shoreline, as of September 2025.

Other natural hazards, such as river flooding and tropical cyclones, are minor factors for infrastructure planning in this territory, as of September 2025.