Data Centers in Zambia
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Zambia – Emerging Hub for Southern Africa
Zambia presents a developing market for digital infrastructure, best suited for organizations targeting sovereign data hosting and service delivery within Southern and Central Africa. While direct cloud connectivity is still nascent, the country's hydropower-dominant grid offers stable and competitively priced electricity, creating a solid foundation for colocation and disaster recovery operations that require regional presence.
Zambia: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable but developing international connectivity; primarily through terrestrial fiber. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via network extension to hubs like Johannesburg. |
| Power Cost | USD $0.09/kWh – as of 2018 | Primarily renewable hydropower contributes to stable and affordable industrial power. |
| Disaster Risk | Moderate (4.6/10) – as of September 2025 | Main risks are drought and flooding, with low seismic activity. |
| Tax Incentives | No | No specific incentives are currently targeted at data center development or operation. |
| Sales Tax | 16% VAT – as of September 2025 | A standard Value Added Tax applies to goods and services. |
Network & Connectivity Ecosystem
Zambia's connectivity landscape is in a growth phase, centered on building out its terrestrial fiber networks to neighboring countries.
Carrier Density & Carrier Neutrality: The market includes at least one primary provider, with several smaller telecom operators present, as of September 2025. Carrier-neutral facilities are limited, with most colocation offered directly by telecom providers.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Zambia, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure by extending their networks to major hubs, most commonly Johannesburg, South Africa, via private network interconnects (PNI) or wavelength services.
Internet Exchange Points (IXPs): The primary exchange is the Zambia Internet Exchange Point (ZIXP). It facilitates local traffic exchange, reducing latency for domestic users and lowering costs by keeping Zambian internet traffic within the country's borders.
Bare Metal: Bare metal server options are available, typically through regional providers or international companies that can deploy equipment in local facilities. Providers like Hivelocity can serve the region.
Power Analysis
Zambia's power infrastructure is a key advantage, characterized by its high dependency on renewable energy and competitive pricing.
Average Cost Of Power: Industrial power costs average around USD $0.09/kWh, as of 2018. This competitive rate is a direct result of the country's significant hydropower generation capacity, making it attractive for energy-intensive compute operations.
Power Grid Reliability: The national grid is largely powered by hydropower, which provides a consistent and reliable baseload. The infrastructure in major commercial centers like Lusaka is well-established, though facilities in remote areas may require more substantial backup power solutions.
Market Access, Business & Tax Climate
Zambia offers a strategic, land-linked position for accessing markets across Southern and Central Africa.
Proximity To Key Business Districts: Data centers are located primarily in Lusaka, the capital and economic hub. This provides low-latency connectivity to government institutions, financial services, and the country's main commercial enterprises.
Regional Market Reach: From its central location, Zambia can effectively serve as a digital services hub for neighboring countries, including the Democratic Republic of Congo (DRC), Malawi, Zimbabwe, and Tanzania.
Tax Advantage For Data Centers: The Zambian government provides general investment incentives, but there are no specific tax advantages for data center construction or operation. The primary financial benefit stems from the country's stable, low-cost power and its strategic location for regional service delivery.
Natural Disaster Risk
Zambia has a moderate overall risk profile, with an INFORM Risk score of 4.6 out of 10, as of September 2025. The country is not exposed to significant seismic or coastal threats, but is susceptible to climate-related events.
Key natural hazards include:
- Drought: The highest single risk factor (5.1/10), which can impact agricultural output and, in severe cases, hydropower generation.
- River Flood: A notable risk (4.8/10), particularly during rainy seasons in low-lying areas.
- Epidemic: Rated at 6.3/10, reflecting regional health infrastructure challenges.
- Earthquake: A low risk (2.5/10), with minimal seismic activity historically.
Tsunami, Tropical Cyclone, and Coastal Flood risks are negligible due to the country's landlocked geography.
