Data Centers in Zambia
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Zambia – Emerging Hub for Southern Africa
Executive Summary
Zambia is an emerging data center market for businesses requiring a strategic foothold in Southern Africa. Its reliance on hydropower provides a stable and cost-effective power foundation, enabling companies to reduce latency and improve application performance for a growing regional economy. This market is ideal for content delivery networks, telecommunications firms, and enterprises targeting Zambia and its eight neighboring countries.
Zambia: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Represents a developing market with foundational international and terrestrial fiber. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct connection to major clouds requires extension from hubs like Johannesburg. |
| Power Cost | $0.09/kWh – as of 2018 | Favorable rates are driven by a grid dominated by hydropower resources. |
| Disaster Risk | Medium (4.6/10) – as of September 2025 | Primary risks are drought and river flooding; minimal seismic and storm activity. |
| Tax Incentives | No | Standard tax regulations apply; no specific data center incentives are offered. |
| Sales Tax | 16% VAT – as of September 2025 | Standard Value Added Tax applies to most goods and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market is in its early stages, with one primary colocation provider operating two facilities as of September 2025. This limited density means carrier neutrality is developing, with interconnection options concentrated within these key sites.
Direct Cloud On-Ramps: There are no direct cloud on-ramps located within Zambia. Businesses requiring dedicated, low-latency access to hyperscale cloud providers must establish private network connections to regional hubs like Johannesburg, South Africa.
Internet Exchange Points (IXPs): The primary exchange is the Zambia Internet Exchange Point (ZIXP). Its presence helps keep domestic internet traffic within the country, significantly reducing latency for local users and lowering transit costs for service providers.
Bare Metal: Bare metal server availability is limited within Zambia. Most compute-intensive deployments are better served from larger, more established regional markets such as South Africa, where providers like OVHcloud or Leasebeweb offer extensive options.
Power Analysis
Average Cost Of Power: The average industrial electricity rate is approximately $0.09/kWh, as of 2018. This competitive pricing is a direct result of the country's grid being about 90% supplied by hydropower. The favorable power cost helps manage operational expenditures, particularly for higher-density workloads.
Power Grid Reliability: The national grid is generally reliable in the main commercial centers where data centers are located. The strong hydropower foundation provides consistent base-load power, though enterprise-grade facilities still require fully redundant UPS systems and generator backups to guarantee uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Zambia are situated in Lusaka, the nation's capital and primary economic hub. This provides low-latency connectivity to the country's financial, governmental, and telecommunications sectors.
Regional Market Reach: As a landlocked country bordering eight nations, Zambia is a strategic crossroads for digital services targeting Southern and Central Africa. A presence in Lusaka can effectively serve users in the DRC, Zimbabwe, Malawi, and other neighboring markets.
Tax Advantage For Data Centers: Zambia does not offer specific tax incentives for data center construction or operations. The country's financial climate is governed by standard corporate tax laws, providing a predictable but not preferential environment for technology investments.
Natural Disaster Risk
Zambia has a medium overall disaster risk profile, with an INFORM score of 4.6 out of 10, as of September 2025. The risk landscape is defined by climate-related events rather than geological or coastal threats.
Key natural hazards include:
- Drought (5.1/10)
- River Flood (4.8/10)
- Earthquake (2.5/10)
The country faces minimal to non-existent risk from tropical cyclones and tsunamis, making it a geologically stable location for critical infrastructure.
