Data Centers in Zambia
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Zambia – Hydropower-Driven Digital Frontier
Executive Summary
Zambia represents an emerging data center market for organizations establishing a digital presence in Southern and Central Africa. Its strategic, landlocked position and hydropower-dominant energy grid offer a unique value proposition for content delivery and local application hosting. This market is best suited for businesses aiming to reduce latency to a growing user base, bypassing reliance on more distant digital hubs.
Zambia: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Represents a developing but functional network infrastructure. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via regional hubs like Johannesburg through private network extensions. |
| Power Cost | $0.09/kWh – as of 2018 | Primarily sourced from cost-effective hydropower, offering stable long-term pricing. |
| Disaster Risk | Moderate (4.6/10) – as of September 2025 | Key risks are drought and flood; lacks significant seismic or cyclonic threats. |
| Tax Incentives | No | The country offers no specific tax incentives for data center development or operation. |
| Sales Tax | 16% VAT – as of September 2025 | A standard Value Added Tax applies to equipment and services. |
Network & Connectivity Ecosystem
Zambia's connectivity landscape is characteristic of a developing market, with foundational infrastructure in place and room for significant growth.
Carrier Density & Carrier Neutrality The market includes at least 2 data centers with a focused set of national and regional carriers available, as of September 2025. Carrier neutrality is available, allowing customers to choose their own transport providers.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Zambia, as of September 2025. Businesses connect to major cloud providers by procuring private network links to regional hubs, primarily Johannesburg, South Africa.
Internet Exchange Points (IXPs) The Zambia Internet Exchange Point (ZIXP) is central to the country's ecosystem. It keeps domestic internet traffic within Zambia's borders, significantly reducing latency for local users and lowering costs for service providers.
Bare Metal Bare metal server options are available, typically through providers that specialize in emerging markets. Global providers like Hivelocity and Leasebew can serve the region, offering dedicated compute for performance-sensitive workloads.
Power Analysis
Average Cost Of Power The industrial electricity price is approximately $0.09/kWh, as of 2018. With a grid powered almost entirely by hydropower (~90%), Zambia offers one of the most renewable-heavy energy mixes in the region, which supports both sustainability goals and predictable energy pricing.
Power Grid Reliability The national grid is developing. While major business districts see stable service, data center operators must implement comprehensive on-site power redundancy, including enterprise-grade UPS systems and backup generators, to guarantee uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Zambia are primarily located in or near Lusaka, the nation's capital and economic center. This ensures low-latency connectivity for government, financial services, mining, and other major commercial enterprises headquartered there.
Regional Market Reach Zambia's central location makes it a strategic point of presence for serving neighboring countries, including the Democratic Republic of Congo, Tanzania, Malawi, and Angola. It provides a viable hub for reaching millions of users across a wide geographic area.
Tax Advantage For Data Centers Zambia does not offer specific tax incentives for data center investment or operations. This creates a straightforward financial environment where operational costs can be modeled predictably without complex and temporary tax credit schemes.
Natural Disaster Risk
Zambia has a moderate overall natural disaster risk profile, with a score of 4.6 out of 10, as of September 2025. The risk profile is dominated by climate and weather-related events rather than seismic or storm activity.
Key environmental risks include:
- Drought: The most significant hazard, which can impact hydropower generation and agricultural output.
- River Flood: A notable risk in specific regions along the country's major river systems.
- Epidemic: A factor in public health and operational continuity planning.
- Earthquake: A low but present seismic risk.
