Data Centers in Benin
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Benin – Emerging West African Digital Hub
Executive Summary
Benin is an emerging data center market positioned for organizations establishing a foundational digital presence in West Africa. Its strategic location provides a gateway to serve Benin's developing economy and act as a viable alternative or disaster recovery site for operations in neighboring countries. For businesses targeting regional growth, Benin offers a starting point with improving connectivity and local operational advantages.
Benin: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Developing international connectivity, suitable for serving the local and regional market. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access to major cloud providers is via network extension to hubs like Lagos, Nigeria. |
| Power Cost | $0.14/kWh – as of September 2025 | Moderately priced for the region, enabling predictable operational costs for compute infrastructure. |
| Disaster Risk | High (5.3/10) – as of September 2025 | Risk is driven by infrastructure and coping capacity, not high frequency of natural events. |
| Tax Incentives | No | Benin has not established specific tax incentives for data center construction or operation. |
| Sales Tax | 18% VAT – as of September 2025 | A standard Value Added Tax applies to most equipment and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As of September 2025, the market features at least 1 data center. Connectivity is supplied by a focused group of national and regional carriers, with an increasing emphasis on carrier-neutral access to improve competition and reduce costs.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Benin as of September 2025. Businesses connect to providers like AWS, Azure, and Google Cloud by extending their networks to major hubs in Lagos, Nigeria, or through Points of Presence in Europe and South Africa.
Internet Exchange Points (IXPs): The primary exchange is the Benin Internet eXchange (BENIN-IX). This IXP facilitates local traffic exchange, which lowers latency for domestic users and reduces costs associated with international transit.
Bare Metal: Bare metal server availability is emerging. Options are typically available from local service providers or through regional specialists that can deploy equipment into Benin's colocation facilities.
Power Analysis
Average Cost Of Power: The average industrial electricity cost is approximately $0.14/kWh as of September 2025. This rate is competitive within the West African region, though higher than major global data center hubs. The power mix is dominated by fossil fuels, accounting for over 98% of generation.
Power Grid Reliability: The national grid can experience inconsistencies common in developing power infrastructures. Data centers in Benin depend on their own redundant power systems, including enterprise-grade UPS units and multiple on-site diesel generators, to ensure continuous uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data center facilities are primarily located in or near Cotonou, the economic capital. This location offers low-latency connectivity to the country's main commercial, financial, and governmental organizations.
Regional Market Reach: Benin provides a strategic point of presence for serving its population of over 13 million people. It also functions as a secondary market or disaster recovery location for businesses with primary operations in neighboring Togo and Nigeria.
Tax Advantage For Data Centers: The government has not introduced specific tax incentives for data centers. The standard corporate tax and investment laws apply, providing a straightforward but not specially advantaged financial environment for operators.
Natural Disaster Risk
Benin has a High overall disaster risk rating of 5.3 out of 10, as of September 2025. This score is influenced more by institutional and infrastructure vulnerability than by the frequency or intensity of natural hazards.
The primary natural risks for infrastructure planning are:
- River Flood: The most significant natural hazard, with a risk score of 6.6.
- Coastal Flood: Poses a moderate risk in low-lying coastal areas near Cotonou, with a score of 1.9.
- Drought: A minor risk with a score of 0.9.
Risks from earthquakes and tropical cyclones are negligible. Careful site selection away from flood-prone areas is the main mitigation strategy.
