Data Centers in Cotonou
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Cotonou – Emerging West African Digital Hub
Executive Summary
Cotonou is an emerging digital market positioned to serve businesses operating in Benin and the wider West African region. For companies requiring a local presence to reduce latency and improve service delivery, Cotonou provides foundational colocation infrastructure. This market is best suited for content delivery networks, financial services, and enterprises targeting growth in the region.
Cotonou: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Developing international connectivity via subsea cables, with improving terrestrial fiber. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest cloud access is in Lagos, Nigeria. Private extensions are available. |
| Power Cost | US$0.14/kWh – as of September 2025 | Higher than some global hubs, reflecting local generation and grid costs. |
| Disaster Risk | High (5.3/10) – as of September 2025 | Primarily driven by flood risk and institutional coping capacity limitations. |
| Tax Incentives | No | Benin offers no specific tax incentives for data center development or tenancy. |
| Sales Tax | ~18% VAT – as of September 2025 | Standard Value Added Tax applies to equipment and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality Carrier density in Cotonou is developing, with one carrier-neutral data center facility available as of September 2025. The market is served by a mix of regional and local providers, with access to major international subsea cable systems landing in the country.
Direct Cloud On-Ramps There are no direct cloud on-ramps in Cotonou, as of September 2025. Businesses requiring dedicated cloud access must establish private network connections to the nearest major cloud hub in Lagos, Nigeria. This enables secure, low-latency links to major cloud providers.
Internet Exchange Points (IXPs) The primary exchange point is the Benin Internet Exchange (BeninIX). It facilitates local traffic exchange between internet service providers, reducing reliance on expensive international transit and improving local network performance.
Bare Metal Bare metal server availability is limited but can be sourced through regional providers. Companies like OVHcloud can offer services to the West African market from their European data centers, with other providers offering solutions from nearby hubs.
Power Analysis
Average Cost Of Power The average industrial power cost is approximately US$0.14/kWh, as of September 2025. This price point is higher than in many established markets, impacting total operational costs for significant deployments. The energy mix is dominated by fossil fuels (~98.4%), with a small but growing renewable energy component (~1.6%).
Power Grid Reliability The national power grid can experience inconsistencies. Data centers in Cotonou counter this with standard N+1 or 2N redundant power infrastructure, including on-site fuel storage for generators and multiple UPS systems, to ensure continuous uptime for critical IT loads.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Cotonou are situated to serve the city's primary economic zones. As the de facto economic capital of Benin, Cotonou is home to the country's main port, government agencies, and commercial enterprises, making it the logical center for digital infrastructure.
Regional Market Reach Cotonou offers a strategic location for serving not only the population of Benin but also neighboring markets. Its port provides a gateway to landlocked countries like Niger and Burkina Faso, and its proximity to Nigeria and Togo makes it a viable secondary location for regional disaster recovery.
Tax Advantage For Data Centers The government of Benin does not currently offer specific tax incentives for data center investment or operation. All companies are subject to the standard corporate tax and VAT regulations defined in the country's general investment code.
Natural Disaster Risk
Benin has a High-risk profile for natural disasters, with an INFORM Risk score of 5.3 out of 10, as of September 2025. The primary environmental threats are climate and water-related, while institutional and infrastructure vulnerabilities increase the overall risk level.
Key natural hazards include:
- River Flood: Score of 6.6, indicating a significant risk, particularly during rainy seasons.
- Coastal Flood: Score of 1.9, a moderate concern for infrastructure located near the coast.
- Drought: Score of 0.9, a recurring issue that can impact resources.
- Epidemic: Score of 7.5, a high-risk factor related to public health infrastructure.
Risks from earthquakes and tropical cyclones are negligible.