Data Centers in Tanzania

Tanzania – East Africa's Emerging Digital Hub

Tanzania is establishing itself as a strategic digital gateway for East Africa. With growing fiber connectivity and a focus on economic development, the country offers a solid foundation for businesses aiming to serve the massive, developing consumer and business markets across the region. Deploying infrastructure here reduces latency and improves service delivery for millions of end-users.

Tanzania: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: As of September 2025, Tanzania's connectivity market is developing, with at least 1 provider offering colocation services across 6 data centers. The market is concentrated, but access to major regional and local carriers is available, particularly in Dar es Salaam.

Direct Cloud On-Ramps: There are no direct cloud on-ramps within Tanzania as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure via network points of presence in nearby hubs such as Nairobi, Kenya. Private network interconnects (PNI) or dedicated wavelength services are the standard methods for achieving secure, low-latency cloud access.

Internet Exchange Points (IXPs): The primary internet exchange is the Tanzania Internet Exchange (TIX), located in Dar es Salaam. The TIX is critical for keeping local traffic within the country, which reduces latency and lowers costs for local operators and their customers.

Bare Metal: Bare metal server options are available, primarily through regional providers or by deploying customer-owned hardware in local colocation facilities. Global providers like Hivelocity or Leasebew can serve the region from European or South African data centers.

Power Analysis

Average Cost Of Power: The industrial electricity rate in Tanzania is approximately $0.09/kWh, as of September 2025. This competitive rate makes the total cost of operation for data centers attractive compared to other regional markets. The power mix is primarily composed of fossil fuels (~60%) and renewables (~40%), with a heavy reliance on hydropower.

Power Grid Reliability: Grid reliability can be a concern, particularly outside major commercial centers. Data centers in Tanzania are engineered with significant redundancy, including multi-megawatt generator and UPS systems with extensive fuel autonomy, to guarantee uptime and insulate operations from utility fluctuations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are concentrated in and around Dar es Salaam, the nation's economic hub. This provides low-latency connectivity to the financial services, logistics, and government sectors, supporting critical business applications.

Regional Market Reach: Tanzania serves as a digital crossroads for East Africa, offering a strategic point of presence to reach neighboring landlocked countries like Uganda, Rwanda, Burundi, and Zambia. Its ports and growing terrestrial fiber network are key to serving this wider region.

Tax Advantage For Data Centers: Tanzania 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 established by the government.

Natural Disaster Risk

Tanzania has a moderate overall natural disaster risk profile, with an INFORM Risk score of 4.9 out of 10, as of September 2025. The primary threats are driven by environmental and climatic factors rather than acute, catastrophic events.

Key risks for consideration include:

• Drought: Score of 5.0
• Earthquake: Score of 4.4
• River Flood: Score of 4.2
• Coastal Flood: Score of 3.2
• Tsunami: Score of 3.1

While tropical cyclone risk is very low (0.7), the other hazards require that data center facilities are sited and constructed to mitigate potential impacts, particularly concerning seismic activity and seasonal flooding.