Data Centers in Uganda
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Uganda – Emerging Hub for East African Digital Services
Uganda represents a foundational market for businesses deploying digital infrastructure to serve East Africa's growing economy. For companies targeting the local population of over 45 million and adjacent landlocked nations, establishing a presence here is critical for reducing latency and improving service delivery. This market is best suited for content delivery networks, financial services, and public sector applications requiring in-country data residency.
Uganda: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reflects improving terrestrial fiber and growing subsea cable access via neighboring countries. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major cloud access hub is Nairobi, Kenya. |
| Power Cost | USD $0.06–$0.10 / kWh – as of September 2025 | Competitive pricing is supported by a grid dominated by renewable hydropower. |
| Disaster Risk | High (5.7/10) – as of September 2025 | Primarily driven by drought, flood, and seismic risks, requiring resilient infrastructure. |
| Tax Incentives | No | No specific tax incentives currently exist for information and communications technology investments. |
| Sales Tax | 18% VAT – as of September 2025 | A standard Value Added Tax applies to services. |
Network & Connectivity Ecosystem
Uganda's connectivity landscape is developing, centered around the capital, Kampala. While still maturing, it provides essential infrastructure for reaching the local market and neighboring countries.
Carrier Density & Carrier Neutrality The market includes over 10 carriers, as of September 2025. It is dominated by a major incumbent provider alongside a growing number of competitive networks. Carrier-neutral facilities are available, offering interconnection between key local and regional providers.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Uganda, as of September 2025. Businesses connect to cloud providers like AWS, Azure, and Google Cloud by procuring private network extensions or using IP transit to major hubs, with Nairobi serving as the primary regional gateway.
Internet Exchange Points (IXPs) The Uganda Internet eXchange Point (UIXP) is the primary peering point in the country. The UIXP is critical for keeping local traffic within Uganda, reducing transit costs, and lowering latency for domestic users.
Bare Metal Bare metal server options are available, primarily from local providers and regional specialists. These services are suitable for workloads demanding dedicated physical resources and consistent performance.
Power Analysis
Average Cost Of Power Industrial power costs in Uganda range from USD $0.06–$0.10/kWh, as of September 2025. This competitive pricing is largely due to the country's reliance on hydropower, which constitutes approximately 90% of its energy mix. These favorable rates can significantly reduce operational expenditures for power-intensive deployments.
Power Grid Reliability The national power grid is still developing, with stability varying outside of core business districts. Data centers in Uganda are engineered with significant redundancy, including N+1 or 2N UPS systems, multiple backup generators, and substantial on-site fuel storage to ensure continuous uptime and meet service level agreements.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Uganda are located primarily in and around Kampala. This positions them close to the nation's commercial, governmental, and financial centers, enabling low-latency connectivity for the country's most critical organizations.
Regional Market Reach Uganda's landlocked position makes it a strategic point for serving neighboring markets. A presence in Kampala can act as a digital gateway to South Sudan, Rwanda, Burundi, and the eastern Democratic Republic of Congo (DRC).
Tax Advantage For Data Centers The business climate in Uganda does not offer specific tax advantages for data center operators or tenants. The standard 18% VAT and corporate tax rates apply, which provides a predictable but unsubsidized financial environment.
Natural Disaster Risk
Uganda has a high overall risk profile, with a score of 5.7 out of 10, as of September 2025. The risk assessment indicates that while the country is not exposed to coastal or cyclonic events, operational continuity planning must account for other significant environmental and health-related hazards.
The primary natural risks to infrastructure include:
- Drought: A score of 6.2 highlights the potential for water shortages and impacts on hydropower generation.
- Epidemic: At 7.7, this is the highest-rated hazard, requiring operators to have strong health and safety protocols.
- River Flood: Scored at 3.9, this risk requires careful site selection away from floodplains.
- Earthquake: A score of 3.7 reflects moderate seismic activity, necessitating data center construction that adheres to relevant building codes.
