Data Centers in Kampala
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Kampala – East Africa's Developing Digital Hub
Kampala is an emerging market for digital infrastructure, best suited for organizations targeting Uganda's domestic market and the broader East African region. While direct cloud connectivity is still developing, the market provides a foothold for content delivery, financial services, and businesses requiring low latency to a growing user base. Success here depends on leveraging local connectivity and navigating a developing infrastructure landscape.
Kampala: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Developing international connectivity with reliance on regional hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via network extension to hubs like Nairobi or Johannesburg. |
| Power Cost | USD 0.06–0.10 / kWh – as of September 2025 | Favorable rates are supported by a grid dominated by renewables. |
| Disaster Risk | High (5.7/10) – as of September 2025 | Primarily driven by drought and flood risk; seismic activity is moderate. |
| Tax Incentives | No | Uganda does not offer specific tax incentives for ICT investment or data centers. |
| Sales Tax | 18% VAT – as of September 2025 | Standard Value Added Tax applies to equipment and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality Kampala's ecosystem includes a mix of regional and local providers, with at least four data centers available as of September 2025. While carrier density is not as high as in major global hubs, carrier-neutral facilities provide access to key networks for building resilient services.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Kampala as of September 2025. Businesses require private network connections or IP transit to establish links to cloud provider regions in South Africa (Johannesburg, Cape Town) or Europe.
Internet Exchange Points (IXPs) The primary exchange is the Uganda Internet eXchange Point (UIXP). Peering at the UIXP improves local traffic routing, reducing latency for Ugandan end-users by keeping data within the country.
Bare Metal Bare metal server options are available in Kampala, typically through local and regional providers. These services are suitable for workloads that require dedicated physical hardware for performance or security reasons.
Power Analysis
Average Cost Of Power Industrial power costs in Kampala range from USD 0.06 to USD 0.10 per kWh, as of September 2025. This competitive pricing, driven by a grid composed of approximately 90% renewable energy (mostly hydropower), offers a significant operational cost advantage.
Power Grid Reliability The power grid is developing. While data centers in key business areas are supported by redundant power feeds and backup generators, reliance on on-site generation is standard practice to ensure continuous uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Kampala are located to serve the central business district and surrounding commercial zones. This proximity is critical for financial institutions, government agencies, and enterprises that need reliable, low-latency connectivity.
Regional Market Reach Kampala serves as a strategic point for reaching Uganda's population and extending services into neighboring markets like Rwanda, South Sudan, and the eastern Democratic Republic of Congo. It acts as a gateway to over 90 million people in the immediate region.
Tax Advantage For Data Centers Uganda does not currently offer specific tax breaks or financial incentives for data center development or operation. Businesses should plan based on the standard corporate tax and an 18% Value Added Tax on goods and services.
Natural Disaster Risk
Uganda has a High natural disaster risk profile, scoring 5.7 out of 10, as of September 2025. The primary hazards impacting the country are not acute events but rather chronic environmental challenges that can affect infrastructure and supply chains.
Key risks include:
- Drought: The highest individual risk factor, potentially impacting hydropower resources.
- Epidemic: A significant national risk affecting workforce and operational stability.
- River Flood: A notable hazard in specific regions, which can disrupt terrestrial fiber routes.
- Earthquake: The region has a moderate seismic risk.
