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Tanzania – The Digital Gateway to the Great Lakes

Tanzania serves as the primary subsea landing point and interconnection hub for East Africa. This market provides essential resilient data pathways for enterprises targeting high-growth economies and landlocked neighbors. It is the critical choice for organizations requiring a reliable bridge between global subsea capacity and regional terrestrial fiber.

Tanzania: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBStrong subsea landings and growing fiber.
Direct Cloud On-Ramps0 – as of September 2025Nairobi serves as the nearest primary hub.
Power CostIndustrial electricity: ≈ $0.09 / kWh, as of September 2025Competitive rates with hydro and biomass mix.
Disaster RiskModerate (4.9/10), as of September 2025Infrastructure resilience mitigates local hazards.
Tax IncentivesNo – as of September 2025Standard business regulations apply to facilities.
Sales Tax18.00% VAT, as of September 2025Standard value-added tax for services.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 10, as of September 2025. The market is maturing, with a mix of national telecommunications leaders and international transit providers moving toward a more neutral interconnection model. This shift allows for more competitive cross-connect pricing and improved redundancy for enterprise users.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions, as of September 2025. There are currently no physical on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure inside the country. Enterprise traffic for these services typically routes via terrestrial fiber to Nairobi, which serves as the regional connectivity hub for global hyperscalers.

Internet Exchange Points (IXPs): The Tanzania Internet eXchange (TIX) is the cornerstone of the local ecosystem, facilitating efficient peering in Dar es Salaam to reduce latency and keep domestic traffic within the country.

Bare Metal: General availability is provided through regional infrastructure specialists. Providers such as Latitude.sh are typically utilized by organizations requiring high-performance compute at the edge as of September 2025.

Power Analysis

Average Cost Of Power: Industrial electricity is approximately $0.09/kWh, as of September 2025. This pricing supports cost-efficient large-scale deployments compared to many higher-cost markets. The energy mix is roughly 60% fossil fuels and 40% renewables, primarily hydro and biomass.

Power Grid Reliability: The grid serving primary data center clusters is well-engineered, utilizing a diversified generation mix. Most facilities maintain high uptime through redundant substation feeds and site-specific backup systems to ensure continuous service for mission-critical loads.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are primarily located in Dar es Salaam, providing immediate proximity to the banking, telecommunications, and logistics sectors. This location is essential for services requiring low-latency delivery to the country's economic engine.

Regional Market Reach: Tanzania is a gateway for landlocked nations including Rwanda, Malawi, and Zambia. This makes it a strategic choice for businesses looking to serve a combined regional population exceeding 150 million people with direct terrestrial fiber paths.

Tax Advantage For Data Centers: While there is no specific data center incentive, the general corporate framework supports regional trade. This helps organizations manage cross-border data delivery and service provision more effectively within the East African Community.

Natural Disaster Risk

The overall risk profile is Moderate (4.9/10), as of September 2025. Infrastructure resilience planning focuses on managing specific environmental hazards to maintain high availability.

  • Drought: 5.0
  • Earthquake: 4.4
  • River Flood: 4.2
  • Coastal Flood: 3.2 (Regional/Coastal specific)
  • Tsunami: 3.1 (Regional/Coastal specific)

Other environmental risks are minor or not listed for this region as of September 2025. Professional facility management in the Dar es Salaam area focuses on flood mitigation and seismic reinforcement to protect critical infrastructure assets.

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