Data Centers in Uganda
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Uganda – Emerging Hub for East African Digital Services
Uganda represents a developing data center market focused on serving the immediate needs of its growing domestic economy and regional neighbors. For businesses targeting East Africa, deploying infrastructure here offers a foothold in a market with improving connectivity and a strong reliance on local digital services. This strategic presence can significantly reduce latency for Ugandan end-users and ensure data sovereignty compliance.
Uganda: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Adequate regional connectivity with reliance on terrestrial fiber to submarine cables. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest major cloud hubs are in Kenya or South Africa; private access available. |
| Power Cost | USD $0.06–$0.10 / kWh – as of September 2025 | Very competitive rates driven by a high percentage of renewable hydropower generation. |
| Disaster Risk | High (5.7/10) – as of September 2025 | Primarily driven by drought and epidemic risk; requires resilient infrastructure planning. |
| Tax Incentives | No | Uganda does not offer specific tax incentives for the ICT or data center sector. |
| Sales Tax | 18% VAT – as of September 2025 | Standard Value Added Tax rate applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: With a focused market of over one primary provider and several regional carriers, as of September 2025, Uganda's ecosystem is growing. The presence of carrier-neutral facilities allows for interconnection between local and international networks, essential for building resilient services.
Direct Cloud On-Ramps: There are no direct, in-country public cloud on-ramps from major providers, as of September 2025. Businesses requiring dedicated cloud access must establish private network connections to hubs in Nairobi, Kenya, or Johannesburg, South Africa.
Internet Exchange Points (IXPs): The Uganda Internet eXchange Point (UIXP) is central to the local ecosystem, enabling domestic traffic to be exchanged efficiently without traversing international links. This improves local application performance and reduces transit costs for service providers.
Bare Metal: Bare metal server options are available from local and regional providers. These services are suitable for workloads requiring dedicated physical resources and predictable performance.
Power Analysis
Average Cost Of Power: Industrial power rates in Uganda are highly competitive, ranging from USD $0.06 to $0.10 per kWh, as of September 2025. This cost advantage is a significant operational benefit for power-intensive data center deployments. The grid is predominantly supplied by renewable energy, with approximately 90% from hydropower.
Power Grid Reliability: The power grid supporting major business centers is reasonably stable, though backup generation is a standard and critical component of any data center design in the region. Facilities are engineered with extensive N+1 or 2N UPS systems and multiple diesel generators with significant fuel autonomy to ensure continuous uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers are located in and around Kampala, the nation's economic and commercial hub. This proximity provides low-latency connectivity to the financial sector, government agencies, and major corporate headquarters concentrated in the capital.
Regional Market Reach: Uganda serves as a strategic digital gateway to landlocked neighboring countries, including Rwanda, Burundi, South Sudan, and the eastern Democratic Republic of Congo. Infrastructure in Uganda can effectively deliver content and services to this broader, underserved region of over 100 million people.
Tax Advantage For Data Centers: Uganda currently has no specific tax incentives aimed at attracting data center investment. The standard corporate tax and VAT rates apply, making financial modeling straightforward without complex credit schemes.
Natural Disaster Risk
Uganda has a High overall disaster risk profile, rated at 5.7 out of 10, as of September 2025. The risk is not driven by catastrophic seismic or storm events but by environmental and health-related factors that can impact operations and supply chains.
Key natural hazards include:
- Drought: The most significant natural hazard (6.2/10), which can impact hydropower resources and agriculture.
- Epidemic: A high-risk factor (7.7/10) that requires robust business continuity and staffing plans.
- River Flood: A notable risk (3.9/10), requiring careful site selection away from flood-prone areas.
- Earthquake: A moderate risk (3.7/10), necessitating that facilities are built to appropriate seismic standards.
