Data Centers in Tanzania

Tanzania – Emerging East African Digital Hub

Tanzania is establishing itself as a strategic digital gateway for East Africa. For companies aiming to serve the region's growing economies, Tanzania offers a foundational colocation market with improving connectivity, positioning businesses to reduce latency and improve service delivery to millions of end-users.

Tanzania: At A Glance

Network & Connectivity Ecosystem

Tanzania's connectivity landscape is centered around its primary submarine cable landing points in Dar es Salaam, providing the country's main link to global networks.

Carrier Density & Carrier Neutrality: The market includes access to a foundational set of local and regional carriers, with at least one provider operating 6 facilities as of September 2025. Carrier-neutral options are emerging, offering choices for interconnection.

Direct Cloud On-Ramps: There are no direct cloud on-ramps within Tanzania as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Azure through dedicated links to major African hubs such as Nairobi, Kenya, or Johannesburg, South Africa.

Internet Exchange Points (IXPs): The Tanzania Internet eXchange (TIX) is the primary IXP, located in Dar es Salaam. It facilitates local traffic exchange, reducing latency for domestic users by keeping data within the country's borders.

Bare Metal: Bare metal server options are available, typically through regional providers or international companies that can deploy equipment in local facilities. Providers like Hivelocity can serve the region.

Power Analysis

Average Cost Of Power: Industrial power costs are approximately $0.09/kWh as of September 2025, an attractive rate within East Africa. This pricing helps manage the operational expenditures for high-density compute deployments.

Power Grid Reliability: The national grid has a power mix of approximately 60% fossil fuels and 40% renewables (mainly hydro). While reliability can vary, data centers in key commercial areas like Dar es Salaam are engineered with significant redundancy, including backup generators and UPS systems, to ensure uptime.

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 proximity provides low-latency connectivity to the financial sector, government agencies, and major corporate headquarters.

Regional Market Reach: Tanzania serves as a crucial digital hub for East and Central Africa. Its strategic location and access to subsea cables allow it to effectively serve neighboring landlocked countries, including Uganda, Rwanda, Burundi, and Zambia.

Tax Advantage For Data Centers: The government does not offer specific tax incentives for data center development or operation. Standard corporate taxes and VAT apply to all businesses operating within the country.

Natural Disaster Risk

Tanzania has a moderate overall disaster risk profile, with an INFORM Risk score of 4.9 out of 10 as of September 2025. The risk landscape is shaped by environmental and geological factors rather than frequent, severe weather events.

Key natural hazards include:

• Drought: The highest individual risk factor (5.0/10), impacting agriculture and water resources.
• Earthquake: A notable risk (4.4/10), primarily related to the East African Rift Valley.
• River Flood: A significant concern (4.2/10) in specific regions during rainy seasons.
• Coastal Flood & Tsunami: Lower-rated risks (3.2 and 3.1 respectively) relevant to coastal operations.