Data Centers in Madagascar

Madagascar – Strategic Gateway for Indian Ocean Connectivity

Executive Summary

Madagascar serves as a vital landing point for subsea cables linking Africa, Asia, and Europe. This market is a strong choice for organizations requiring a localized edge presence or low latency across the Indian Ocean while managing competitive power costs. Strategic placement here provides a significant advantage for capturing market share in a developing digital economy.

Madagascar: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 5 as of September 2025. Madagascar maintains a maturing ecosystem with several active providers. Carrier–neutral facilities allow for flexible interconnection and reduced vendor lock–in compared to traditional monopoly environments.

Direct Cloud On–Ramps: Over 0, enabling access to 0 cloud regions. There are currently no direct on–ramps for major cloud providers as of September 2025. Organizations typically access global cloud platforms via private network interconnects to the nearest regional hub in Johannesburg.

Internet Exchange Points (IXPs): The Madagascar Global Internet eXchange (MGIX) in Antananarivo serves as the primary hub for keeping local traffic within the country to reduce latency.

Bare Metal: Bare metal services are available through regional specialists like Latitude.sh as of September 2025. These provide dedicated compute resources for performance–heavy applications without the overhead of virtualization.

Power Analysis

Average Cost Of Power: Industrial electricity is priced at $0.07/kWh as of December 2024. This pricing is highly competitive for the region and helps firms manage operational overhead while utilizing a mix that includes 35% renewable energy.

Power Grid Reliability: In major industrial corridors like Antananarivo, the grid is supported by multi–substation infrastructure. While the national grid faces general challenges, data center operators utilize purpose–built redundancy to ensure continuous uptime for mission–critical hardware.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data center infrastructure is concentrated near the Andraharo district in Antananarivo. This proximity ensures that financial services and telecommunications firms have immediate access to high–speed compute resources centrally located in the capital city.

Regional Market Reach: Madagascar is positioned to serve as a digital gateway for the Indian Ocean Islands and provide alternative routing for East African data traffic.

Tax Advantage For Data Centers: Financial credits are available for digital and energy connectivity projects to help offset capital expenditure. These incentives facilitate faster infrastructure deployment for networking and power equipment.

Natural Disaster Risk

Madagascar has an overall risk profile of High (5.4/10) as of September 2025. The geography of the island makes it susceptible to several hazards that require specific engineering mitigations.

• Tropical Cyclone (6.7): Frequent seasonal storms necessitate purpose–built, wind–resistant facility shells to protect infrastructure.
• Tsunami (6.4): This is a regional risk for coastal landing stations, though it is less impactful for facilities in the highlands.
• Coastal Flood (6.3): Primarily impacts maritime landing points; main data centers are typically located at higher elevations to avoid this risk.
• River Flood (6.1): Requires site–specific drainage and elevated equipment placement to ensure long–term reliability.