Caroline Kamaitha, General Manager Raxio Data Centre Uganda presents Uganda’s Data Centre Landscape 2025 report and addresses the media.
Uganda has made significant strides in data centre development, cloud adoption, and AI integration in recent years, reveals Raxio Data Centre 2025 report on Uganda’s Data Centre Landscape.
Unveiled on Tuesday at Raxio Data Centre headquarters in Namanve Industrial Park, the report says Uganda’s data consumption is growing as a result of expanding internet usage, e-commerce, and digital financial services, increased smartphone adoption and e-government, thus accelerating the need for reliable data infrastructure.
Speaking at the launch, Raxio Uganda’s General Manager, Caroline Kamaitha, pointed out data centers are the backbone of the Internet and cloud-based services, powering businesses, advancing public services, financial services, healthcare and education.
According to the Uganda Communications Commission (UCC) report, cloud computing in Uganda has grown by over 30% in just three years, driven by SMEs, fintechs, and government agencies seeking scalability, efficiency, and compliance.
Raxio Data Centre’s report says Artificial Intelligence is transforming banking, retail, and healthcare, but it also demands high-performance computing environments.
“With financial institutions deploying AI for fraud detection and personalization, low-latency local hosting becomes critical to maintaining compliance and performance,” the report says.
The report adds that sustainability relating to environmental and power reliability concerns have moved green data centre investments to the top of the agenda.
“Businesses are prioritizing partners who leverage hydro and solar energy to ensure sustainability and operational continuity,” the report further reads in part.
Cybercrime rose by 37% in 2023, according to the Uganda Police Cyber Unit. The Uganda’s Data Protection and Privacy Act mandates local processing and storage of citizen data.
The report also highlights challenges within the data centre landscape.
Power and Connectivity still pose a big challenge to Data Centres, the report says.
The report also adds that unstable electricity supply and high operational costs remain hurdles. However, innovations in solar energy and partnerships with telecom providers could mitigate these issues.
“For most enterprises, the Total Cost of Ownership is prohibitive, driving a shift towards colocation and managed services,” said Edwin Enabu Sales Manager at Raxio.
The rising threat landscape and regulatory framework are compelling enterprises to seek secure colocation, compliance-grade security frameworks, and disaster recovery solutions.
ISO 27001 and GDPR standards have become the bench-marks and businesses are actively seeking certified providers with compliant infrastructure.
“The need for local data centre solutions has intensified, ensuring compliance with regulatory requirements while minimizing the risks associated with storage of sensitive data in foreign locations,” the report says, adding: “This mix of growth and challenges demands reliable local providers who can deliver secure, enterprise-grade cloud hosting through global partnerships.”
The report emphasizes the need for more local facilities to improve latency, data sovereignty, and cost efficiency for businesses. Despite the growing demand, Uganda still relies partly on international data centres.
The report predicts more investments in advanced cooling systems, renewable energy, and security to meet global standards.
Raxio Data Centre, a Tier III Facilities Data Centre Company is leading the charge, offering high reliability and uptime.
Raxio Uganda boosts of 2N+1 redundancy and is Uganda’s first carrier-grade, Tier III certified carrier neutral data centre providing colocation, cross connect, fibre and IT infrastructure services.
Raxio operates other more data centres across Africa, supporting the continent’s digital transformation through secure, scalable infrastructure.
The Ugandan government’s National Broadband Policy and Data Protection Act are also creating a more favorable environment for data centre growth, encouraging foreign and local investors.
With improved infrastructure and regulatory support, experts project Uganda’s data centre market to expand rapidly, potentially becoming a regional hub for East Africa.
