Data Centers in Uganda

Uganda – Hydropower-Fueled Digital Infrastructure

Executive Summary

Uganda is an emerging data center market ideal for businesses targeting the growing digital economy in East and Central Africa. Its primary advantages are low-cost, hydro-powered electricity and a strategic location for serving millions of end-users, ensuring reliable and sustainable operations.

Uganda: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality Uganda's connectivity market is growing, with services from over a dozen national and regional carriers available, as of September 2025. The market features at least one carrier-neutral data center, providing interconnection options.

Direct Cloud On-Ramps There are no direct cloud on-ramps within Uganda, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through network hubs in Nairobi, Kenya. Private network extensions can establish dedicated links to these cloud regions.

Internet Exchange Points (IXPs) The primary peering point is the Uganda Internet eXchange Point (UIXP) in Kampala. The UIXP is critical for localizing traffic, which reduces latency and lowers transit costs for interconnected networks.

Bare Metal Bare metal server options are available from local and regional providers. These services are suitable for workloads requiring dedicated physical hardware for performance or security.

Power Analysis

Average Cost Of Power Industrial power costs in Uganda are very competitive, ranging from USD $0.06 to $0.10 per kWh, as of September 2025. This low cost, derived primarily from hydroelectric sources, provides a significant operational expense advantage for high-density computing.

Power Grid Reliability The national grid can experience instability. However, data centers in Kampala are well-engineered with multiple levels of redundancy, including block-redundant UPS systems and backup generators with significant fuel reserves, to ensure continuous uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers are concentrated in and around Kampala, the nation's economic center. This proximity provides low-latency connectivity for the financial services, government, and commercial sectors headquartered in the city.

Regional Market Reach Uganda serves as a digital gateway to neighboring markets, including South Sudan, Rwanda, Burundi, and the eastern Democratic Republic of Congo. A presence here can effectively serve a population of over 200 million people across East and Central Africa.

Tax Advantage For Data Centers Uganda does not currently offer tax incentives specifically for data center development or operation. The primary financial advantage comes from the country's low industrial power rates rather than from tax policy.

Natural Disaster Risk

Uganda has a High overall disaster risk profile, with an INFORM Risk score of 5.7 out of 10, as of September 2025. While the country is not exposed to coastal or cyclonic events, operators must plan for several specific environmental challenges.

• Epidemic Risk: Rated at 7.7, this is a significant factor that can affect staffing, logistics, and supply chains.
• Drought: Rated at 6.2, this is the most significant natural hazard, potentially impacting water resources for cooling and the stability of the hydroelectric power supply.
• River Flood: With a score of 3.9, seasonal flooding can disrupt transportation and terrestrial fiber routes.
• Earthquake: Seismic risk is rated at 3.7, requiring facilities to adhere to appropriate building and engineering standards.