Data Centers in Lusaka
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Lusaka – Emerging Hub for Central African Digital Services
Lusaka is establishing itself as a foundational digital market for south-central Africa. For businesses targeting Zambia and neighboring countries like the DRC, Zimbabwe, and Malawi, deploying in Lusaka provides a crucial foothold for reducing latency and improving service delivery. This emerging market is best suited for content delivery networks, financial services, and logistics companies needing to build a reliable presence in a previously underserved region.
Lusaka: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good regional and international connectivity for an emerging market. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via Johannesburg or Nairobi through private network extensions. |
| Power Cost | USD $0.09/kWh – as of 2018 | Primarily hydropower-based, offering stable and competitively priced energy. |
| Disaster Risk | Moderate (4.6/10) – as of September 2025 | Dominated by drought and flood risks; seismic activity is minimal. |
| Tax Incentives | No | No specific incentives are currently targeted at data center development. |
| Sales Tax | 16% VAT – as of September 2025 | Standard Value Added Tax applies to equipment and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Lusaka's ecosystem includes a growing number of local and regional carriers, with at least 2 data center facilities offering services as of September 2025. Carrier neutrality is becoming standard, allowing customers to connect with their preferred network providers without restriction.
Direct Cloud On-Ramps: There are no direct, in-market public cloud on-ramps in Lusaka as of September 2025. Businesses connect to cloud providers like AWS, Azure, and Google Cloud by extending their networks to major hubs, primarily Johannesburg, South Africa.
Internet Exchange Points (IXPs): The primary exchange is the Zambia Internet Exchange Point (ZIXP), which facilitates local traffic peering, reducing transit costs and improving latency for domestic users. Most international peering occurs through upstream providers.
Bare Metal: Bare metal server options are available through local providers and some regional specialists. These services offer dedicated compute resources necessary for performance-sensitive applications.
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 Zambia's reliance on hydropower, which accounts for about 90% of its energy mix and supports predictable operational costs.
Power Grid Reliability: The power grid serving Lusaka's main commercial districts is reasonably stable, though data centers rely on redundant N+1 or 2N UPS systems and multiple backup generators to guarantee uptime. The grid's foundation in hydropower contributes to its overall stability compared to fossil fuel-dependent networks.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Lusaka are situated to serve the city's central business district, home to financial institutions, government bodies, and corporate headquarters. This proximity ensures low-latency connectivity for the country's primary economic hub.
Regional Market Reach: Lusaka serves as a strategic digital gateway to south-central Africa. It provides a viable point of presence for reaching markets in the Democratic Republic of Congo, Zimbabwe, Malawi, and Angola, which have historically been difficult to serve from coastal hubs.
Tax Advantage For Data Centers: Zambia does not currently offer specific tax incentives for data center construction or operation. The standard corporate tax and VAT rates apply, simplifying financial planning but offering no distinct advantage over other sectors.
Natural Disaster Risk
Lusaka has a moderate overall disaster risk profile, with a score of 4.6 out of 10, as of September 2025. The primary environmental threats are driven by climate and weather patterns rather than seismic or coastal events.
Key natural hazards include:
- Drought: The highest individual risk factor, reflecting regional rainfall variability.
- River Flood: A significant concern in specific areas during rainy seasons.
- Earthquake: A low but present risk.
- Epidemic: A moderate risk factor, common to many developing nations.
