Data Centers in Lusaka
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Lusaka – Emerging Hub for Southern Africa
Executive Summary
Lusaka is establishing itself as a foundational digital infrastructure market for businesses entering Zambia and the broader Southern African region. While still developing, establishing a presence here provides a crucial low-latency connection to a growing economy. This market is best suited for organizations targeting in-country users and building a long-term strategy for regional expansion.
Lusaka: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reflects a developing market with growing international fiber connectivity. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | The nearest major cloud hubs are in South Africa (e.g., Johannesburg). |
| Power Cost | $0.09/kWh – as of 2018 | Sourced primarily from hydropower, offering competitive regional pricing. |
| Disaster Risk | Moderate (4.6/10) – as of September 2025 | Primary risks include drought, epidemic, and river flooding. |
| Tax Incentives | No – as of September 2025 | No specific tax incentives currently target data center development. |
| Sales Tax | 16% VAT – as of September 2025 | A standard Value Added Tax applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality The Lusaka market features 2 data centers with service from at least 1 provider as of September 2025. Carrier density is still nascent, with connectivity options concentrated in a few key facilities. Carrier-neutral colocation is available, providing a central point for interconnection between local networks.
Direct Cloud On-Ramps There are no direct public cloud on-ramps located in Lusaka as of September 2025. Businesses requiring dedicated cloud access must connect to providers in Johannesburg, South Africa. Private network extensions via point-to-point circuits or MPLS/VPLS are the standard methods for achieving reliable, low-latency cloud connectivity.
Internet Exchange Points (IXPs) The primary exchange is the Zambia Internet Exchange Point (ZIXP). Its presence in Lusaka is critical for keeping local internet traffic within the country, reducing latency for domestic users and lowering transit costs for service providers.
Bare Metal Bare metal server options are available in Lusaka, primarily through local and regional providers. These services are suitable for workloads that require dedicated physical resources and direct control over the hardware environment.
Power Analysis
Average Cost Of Power Industrial power costs in Lusaka average around $0.09/kWh as of 2018. This competitive rate, driven by a grid dominated by hydropower, can result in significantly lower operational expenses compared to other regional markets.
Power Grid Reliability Zambia's power grid is approximately 90% hydropower-based. While this provides a renewable energy source, it can be susceptible to seasonal variations and drought conditions. Data centers in Lusaka are engineered with substantial power redundancy, including multi-megawatt generator and UPS systems, to ensure continuous uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Lusaka are situated to serve the city's central business district, government institutions, and key financial services companies. This proximity ensures minimal latency for critical applications supporting Zambia's primary economic sectors.
Regional Market Reach Lusaka is a strategic location for serving the entirety of Zambia. It also functions as a potential digital gateway to neighboring countries, including the Democratic Republic of Congo, Zimbabwe, Malawi, and Tanzania, offering a stable base for multi-country operations.
Tax Advantage For Data Centers There are no specific tax incentives aimed at attracting data center investment in Zambia. Companies should expect to operate under the standard business and investment frameworks applicable to all industries.
Natural Disaster Risk
Lusaka has a moderate natural disaster risk profile, with an INFORM Risk score of 4.6 out of 10 as of September 2025. The risk assessment indicates that operational continuity plans should prioritize resilience against environmental and public health challenges.
Key natural hazards include:
- Drought (5.1/10)
- River Flood (4.8/10)
- Earthquake (2.5/10)
The region has no exposure to tsunamis, tropical cyclones, or coastal flooding.
