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Raxio Data Centre Launches Landmark Report on Uganda’s Data Centre Landscape in 2024/5
Kampala, Uganda | LOUIS JADWONG & AGENCIES | The recent decision by International Finance Corporation (IFC), a member of the World Bank Group, to back Raxio’s record $100 million investment in Sub-Saharan Africa, is yet the strongest indicator of the key role data centres are expected to play in the continent’s digital drive.
A new report on Uganda’s data centre landscape says as much, stressing an expected sharp rise in general demand for cloud and other digital services, in light of the region’s unreliable power supply, complex regulation, political instability, and high capital requirements. Hosting data locally reduces costs, the report says, and in addition to improving speeds, gives governments more control over cybersecurity and regulation.
“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,” according to The State of Data Centres in Uganda – 2025 report.
Raxio Data Centre, Uganda’s first carrier-grade, Tier III certified carrier and cloud-neutral data centre, on Tuesday launched Uganda’s Data Centre Landscape 2025 report. The function was at the heart of Namanve Industrial Park, in Kampala, where Raxio Uganda is ideally located along key fibre routes and delivers best in class colocation, cross connect, fibre and IT infrastructure services.
The report provides a detailed breakdown of the trends, challenges, and opportunities that are actively shaping the data centre and digital infrastructure landscape across the continent, with particular focus on the rapidly evolving digital economy of Uganda.
“Uganda and Africa as a whole are at a pivotal point in their digital evolution. As the backbone of the Internet and cloud-based services, data centres are not only powering businesses but also advancing public services, financial services, education, and healthcare. This report highlights the urgent need for robust, secure and sustainable infrastructure to support our continent’s digital ambitions,” Caroline Caroline Kamaitha, General Manager of Raxio Data Centre Uganda said.
Kamaitha restated that Raxio Data Centre Uganda supports industries that are facing increasingly complex and unique IT and regulatory challenges. “By providing these industries with the technological infrastructure they need to transform their businesses, Raxio Uganda will help drive economic growth, social development, and digital transformation throughout Africa,” she said.
Four core drivers of transformation are identified within the report: the upsurge in cloud adoption, the rapid rise of Artificial Intelligence (AI), stricter data sovereignty and compliance frameworks, and the growing relevance of sustainability in infrastructure development. Specific challenges hindering full scale adoption of digital solutions are also highlighted in the report, such as unreliability in power supply and high capital requirements.
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 according to the Uganda Communications Commission (UCC) report.
In the report, data centres are positioned as enablers of long term transformation, more so as Uganda experiences increased climate volatility and anticipates a surge in data demands from the fintech, telecom, and public sectors.
“This consolidated report gives insights into the market trends and opens up the conversation on how the industry can collaborate and partner to address the challenges and opportunities towards a digitally resilient Uganda,” said Kamaitha. “From our operations at Raxio to industry wide initiatives, our goal is to create infrastructure that’s not only reliable but environmentally conscious, scalable, and inclusive,” she added.
The report identifies Small and Medium Enterprises (SMEs), large enterprises, and government entities as primary drivers of the growth. Raxio head Kamaitha specifically noted the increasing reliance on technology and business expansion within the SME sector, including banks, as a significant factor fueling cloud adoption.
Furthermore, the report underscores the transformative impact of AI and Big Data on infrastructure demands. Kamaitha illustrated how sectors like banking are increasingly leveraging AI for critical functions such as fraud management and internal monitoring. “As AI applications become more widespread, we anticipate a direct and significant impact on the demand for high-quality, Tier III data centre facilities capable of efficiently and securely processing vast amounts of data,” she explained.
Kamaitha elaborated on the significance of Tier III certification, highlighting the redundancy in power and other critical infrastructure, which translates to higher uptime and Service Level Agreements (SLAs) – essential for AI and big data processing.
Officials took journalists through their Namanve facility and showed how. Raxio’s data centres are designed to provide 24/7 reliability, ensuring continuous service even during maintenance or unexpected disruptions. The company also integrates renewable energy solutions where possible and deploys energy-efficient equipment to reduce electricity and water usage, particularly for cooling, in several of its facilities.
The full report is available for download CLICK HERE
World Bank backs Africa digital data push
The World Bank’s private investment arm is backing the rush into digital data in Africa with a $100 million investment in regional data centre developer and operator Raxio Group, funding centres from Ethiopia to Angola, according to Reuters.
Digital demand on the continent is surging, but infrastructure remains scarce. Africa accounts for less than 1% of the world’s data centre capacity even as mobile data usage grows by around 40% annually – nearly double the global average, according to U.S. advocacy group Internet Society.
The debt funding by the World Bank’s International Finance Corporation (IFC) – its largest such investment to date in Africa – reflects rising interest from global institutions in the continent’s digital economy, where mobile money, AI-driven services and cloud-based platforms are rapidly expanding.
After launching its first facility in Uganda in 2021, Raxio has data centres operating in Angola, Ivory Coast, Mozambique, Ethiopia, Tanzania (being built) and Democratic Republic of Congo. The IFC financing will be for further expansion across the continent.
