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Data Centers in Tanzania

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Tanzania – Strategic Gateway to East Africa

Executive Summary

Tanzania is a strategic entry point for businesses targeting the East African market. The developing infrastructure offers a foundational presence for delivering digital services and content closer to a growing user base. Establishing a footprint here is key for companies focused on regional expansion and capturing future revenue streams.

Tanzania: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBRepresents a developing but improving connectivity landscape.
Direct Cloud On-Ramps0 – as of September 2025Nearest hubs are in South Africa or Europe; private connectivity is available.
Power Cost≈ $0.09/kWhCompetitive power costs for the region support scalable operations.
Disaster RiskModerate (4.9/10) – as of September 2025Primary risks include drought, epidemic, and seismic activity.
Tax IncentivesNoStandard business taxation applies. No specific data center incentives.
Sales TaxStandard VAT applies – as of September 2025Consult local experts for current rates applicable to IT services.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: As an emerging market, Tanzania has a focused carrier landscape. There is one primary national provider, with a growing number of smaller networks expanding coverage as of September 2025. The market features at least 6 data centers.

Direct Cloud On-Ramps: There are no direct cloud on-ramps within Tanzania as of September 2025. Businesses connect to cloud providers via the nearest hubs in South Africa or Europe. Private network extensions can establish dedicated links to these regions for improved performance.

Internet Exchange Points (IXPs): The primary local exchange is the Tanzania Internet Exchange (TIX). Its presence in key data centers helps keep domestic traffic within the country, significantly improving latency and performance for local users.

Bare Metal: Bare metal services are available, typically from providers specializing in emerging markets or through regional deployments. Options like Leaseweb can serve the area from European or South African locations.

Power Analysis

Average Cost Of Power: The average industrial power cost in Tanzania is approximately $0.09/kWh as of September 2025. This competitive rate makes the market attractive for power-intensive deployments compared to many other regions.

Power Grid Reliability: The national power grid can experience inconsistencies. Data centers in Tanzania are engineered with significant N+1 redundancy, including multi-megawatt generator and UPS systems, to ensure continuous uptime and meet service level agreements.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are typically located in or near Dar es Salaam, the country's economic hub. This provides low-latency connectivity to financial institutions, government offices, and major commercial enterprises operating in the city.

Regional Market Reach: Tanzania's strategic location on the east coast of Africa makes it a viable point of presence for serving neighboring landlocked countries. It provides a digital gateway to Uganda, Rwanda, Burundi, and Zambia.

Tax Advantage For Data Centers: Tanzania does not offer specific tax incentives for data center development as of September 2025. The primary financial advantage comes from competitive operational costs, such as power, rather than direct tax relief.

Natural Disaster Risk

Tanzania has a moderate natural disaster risk profile, with an overall INFORM Risk score of 4.9 out of 10 as of September 2025. The primary natural hazards to consider are drought, which can impact hydroelectric power generation, and seismic activity (earthquakes). Other notable risks include river and coastal flooding. Data center site selection and facility engineering account for these regional factors.

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