Data Centers in Kampala
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Kampala – East Africa's Developing Digital Hub
Kampala is an emerging market for digital infrastructure in East Africa, best suited for organizations targeting Uganda's domestic economy and the broader Great Lakes region. While still developing, its focus on hydroelectric power provides a stable and cost-effective energy foundation for initial deployments. This market serves as a critical entry point for services needing to reach a rapidly digitizing population.
Kampala: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable regional links, but limited international and subsea cable diversity. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Closest major on-ramp hubs are in Nairobi and Mombasa, Kenya. |
| Power Cost | USD $0.06–$0.10 / kWh (industrial) | Favorable rates driven by a high percentage of renewable energy sources. |
| Disaster Risk | High (5.7/10) – as of September 2025 | Primary risks include epidemic, drought, and socio-economic vulnerabilities. |
| Tax Incentives | No | No specific tax incentives for data centers or IT investments are offered. |
| Sales Tax | 18% VAT – as of September 2025 | Standard Value Added Tax applies to equipment and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality The market is served by 1 primary provider across 4 data centers, with several other local and regional carriers present, as of September 2025. Carrier-neutral facilities are available, offering foundational interconnection options for businesses entering the Ugandan market.
Direct Cloud On-Ramps There are no direct, private cloud on-ramps to major hyperscalers within Kampala, as of September 2025. Businesses requiring dedicated cloud access typically establish private network connections to carrier hotels and on-ramp locations in Nairobi or Mombasa, Kenya.
Internet Exchange Points (IXPs) The primary local exchange is the Uganda Internet eXchange Point (UIXP). Peering at the UIXP reduces latency for domestic traffic and lowers transit costs by keeping local data within Uganda's borders.
Bare Metal Bare metal server options are available in Kampala, typically through regional providers and managed services companies. These services are suitable for workloads that require dedicated physical hardware rather than virtualized resources.
Power Analysis
Average Cost Of Power Industrial power costs in Kampala are competitive for the region, ranging from USD $0.06 to $0.10 per kWh, as of September 2025. This cost advantage is largely due to the nation's reliance on hydroelectric power, making operational expenses predictable for colocation customers.
Power Grid Reliability Uganda's power grid is dominated by renewable sources, with approximately 90% generated from hydroelectric dams. While this provides a sustainable and generally stable baseload, last-mile connectivity in some areas can experience inconsistencies. Data centers in Kampala mitigate this with standard N+1 or 2N UPS systems and multiple backup diesel generators.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Kampala are situated to serve the central business district, home to financial institutions, government offices, and major corporate headquarters. This proximity supports low-latency requirements for the city's primary economic activities.
Regional Market Reach Kampala serves as a strategic digital gateway to landlocked neighboring countries, including South Sudan, Rwanda, and the eastern Democratic Republic of Congo. Colocating in Kampala allows businesses to establish a service delivery hub for this underserved region of over 100 million people.
Tax Advantage For Data Centers Uganda does not currently offer specific tax incentives for the development or operation of data centers. The standard corporate tax and VAT rates apply, providing a straightforward but not preferential financial environment for IT infrastructure investment.
Natural Disaster Risk
Uganda has a High-risk profile according to the INFORM Risk Index, with an overall score of 5.7 out of 10, as of September 2025. The risk is driven more by vulnerability and coping capacity factors than by direct hazard exposure.
The primary natural hazards impacting the region include:
- Drought: Score of 6.2
- River Flood: Score of 3.9
- Earthquake: Score of 3.7
Risks from tsunami, tropical cyclones, and coastal floods are negligible due to the country's inland geography.
