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Data Centers in Johannesburg

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Johannesburg – The Gateway to Southern African Digital Commerce

Executive Summary

Johannesburg is the essential hub for enterprises targeting the 16-nation SADC region. It offers the densest interconnection and cloud access on the continent, making it the primary choice for businesses where latency and uptime directly impact revenue.

Johannesburg: At A Glance

FactorRating / DataNotes
Global Connectivity GradeALeading subsea cable density and peering.
Direct Cloud On-RampsOver 5 – as of September 2025AWS, Google Cloud (GCP), Microsoft Azure, Oracle Cloud.
Power CostR 2.50/kWh – as of September 2025Competitive industrial rates for the region.
Disaster RiskModerate (4.8/10) – as of September 2025Primary environmental concern is regional drought.
Tax IncentivesNoNo specific incentives for data centers.
Sales Tax15% VAT – as of September 2025Standard national rate for commercial services.

Network & Connectivity Ecosystem

Johannesburg serves as the digital engine for Southern Africa, providing the foundation for regional data transit.

Carrier Density & Carrier Neutrality: Carrier count: over 28 as of September 2025. The market provides ~30 carriers, ensuring competitive pricing and resilient routing options for distributed architectures.

Direct Cloud On-Ramps: Over 5, enabling access to 5 cloud regions as of September 2025. Direct on-ramps are available for AWS, Google Cloud (GCP), Microsoft Azure, and Oracle Cloud.

Internet Exchange Points (IXPs): NAPAfrica is the dominant exchange, facilitating local peering that significantly reduces latency and transit costs across the continent.

Bare Metal: High performance bare metal services are available through global providers such as Hivelocity.

Power Analysis

Energy management in Johannesburg requires a proactive approach due to grid requirements and the shift to diversified generation.

Average Cost Of Power: R 2.50/kWh, as of September 2025. This pricing supports the industrial structure necessary for high density compute environments. The cost is a significant factor in operational expenditure for local deployments.

Power Grid Reliability: Major data center corridors in Midrand and Isando rely on well-engineered local infrastructure. Most facilities use multi-substation support and site-based generation to ensure consistent uptime for critical workloads.

Market Access, Business & Tax Climate

As the commercial center of South Africa, Johannesburg provides immediate proximity to the continent's largest corporate headquarters.

Proximity To Key Business Districts: Data centers are strategically located near Sandton, the financial capital, and Midrand, the primary tech corridor. This proximity is critical for low latency financial trading and enterprise applications.

Regional Market Reach: This hub acts as the primary gateway for the SADC region, reaching a population of over 380 million people.

Tax Advantage For Data Centers: Johannesburg lacks specific data center tax incentives, which simplifies the tax planning process by providing a predictable framework. The stable 15% VAT environment allows for reliable long term infrastructure planning and capital expenditure.

Natural Disaster Risk

Johannesburg maintains a Moderate (4.8/10) risk profile as of September 2025. While the city is seismically stable, environmental factors require specific mitigation strategies.

Drought (8.8): The primary natural risk, affecting water-cooled infrastructure and favoring closed-loop cooling designs.

River Flood (3.2): A factor for specific areas, though major data center parks are typically sited on high ground.

Coastal Flood (2.8): This is a regional risk affecting national logistics rather than direct facility safety.

Earthquake (1.5): A minor risk with limited historical impact on resilient structural designs.

Other natural hazards are minor or not listed for this metro area as of September 2025.

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