On Tuesday, Raxio Data Centre launched Uganda’s Data Centre Landscape 2025 Report, which provides a breakdown of the trends, challenges, and opportunities actively shaping the country’s digital infrastructure.
As per the report, the four core drivers of transformation:
- The upsurge in cloud adoption, which has grown by over 30% in just three years (as per UCC), demands reliable local providers like Raxio Data Centre, which can deliver secure, enterprise-grade cloud hosting through global partnerships.
- The rapid rise of artificial intelligence (AI) is also demanding 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 growing relevance of sustainability in infrastructure development. The report highlighted that with the exit of UMEME, businesses are prioritizing partners who leverage hydro and solar energy to ensure sustainability and operational continuity.
- Uganda’s Data Protection and Privacy Act, which mandates local storage of citizen data, has reshaped the market by intensifying the demand for domestic data centre solutions. These solutions ensure compliance with regulatory requirements and mitigate risks linked to storing sensitive information in foreign jurisdictions.
What does this mean for the Ugandan market and the data centre industry? Ms. Caroline Kamaitha, General Manager of Raxio Data Centre Uganda, said, “Essentially, it highlights a growing demand for data centre capacity and the diverse services these facilities offer. This trend doesn’t just signal opportunity for us at Raxio—it underscores sustained growth potential for the entire data centre sector.”
The report also identified challenges hindering full-scale adoption of digital solutions and how Raxio is paving the way for resilience and growth. The three key challenges that are highlighted in the report include:
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High Capital Investment: Building a commercial-grade data center demands significant investment. For most enterprises, the total cost of ownership is prohibitive, pushing the shift to colocation and managed services.
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Power Instability: Unreliable grid power, pricing uncertainty, and surges threaten data integrity, thus, data centre providers with efficient backup systems and green energy capabilities are becoming the preferred choice.
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Cybersecurity Threats: Cybercrime in Uganda surged by 37% in 2023 (as per the Uganda Police Cyber Unit). Financial institutions are prime targets, said Mr. Edwin Enabu, Sales Manager at Raxio Data Centre Uganda, but attacks disrupt all sectors. Protecting sensitive data requires advanced, constantly updated defenses and disaster recovery solutions.
Mr. Enabu, however, highlighted three other challenges, including unstable internet & high latency—which hinder operations, physical security risks, and overcooling equipment which shortens hardware lifespan.
To tackle these key challenges, Raxio is enabling its clients to prioritize their core operations. “We shoulder the infrastructure burden,” Mr. Enabu emphasized while underscoring how this approach reduces complexity for businesses. He also noted that sustainability is another pillar of Raxio’s strategy and that the company employs eco-friendly cooling systems and energy-efficient designs, aligning with both environmental goals and stringent regulatory standards. This focus is vital for sectors undergoing rigorous audits, ensuring compliance while minimizing ecological impact.
Cost efficiency is addressed through Raxio’s upfront investments in infrastructure, which lower clients’ capital and operational expenses. Scalable solutions, enabled by modular data center expansions, allow businesses to adjust resources as needed without overspending.
Compliance and scalability are central to Raxio’s vision. With plans to expand from 7 to 14 data centers across Africa, the company emphasizes local data hosting to meet regulatory requirements while ensuring future-ready scalability. This growth strategy positions Raxio as a partner for organizations navigating evolving digital and regulatory landscapes.
As Uganda continues to align with global standards, its digital economy is gaining pace. As per the report, what the country now needs is a robust, compliant, and sustainable digital infrastructure to support its growth. Forward-looking businesses must embrace cloud, AI, and colocation services to remain competitive and ready for the future.
Raxio urged leaders that as cloud adoption surges, securing reliable and local infrastructure becomes critical to meet the demands of high-performance sectors like AI, fintech, and e-government, which require compliant, scalable environments. Simultaneously, growing regulatory pressures and environmental concerns are driving the need for sustainable, locally hosted solutions to ensure data sovereignty and reduce carbon footprints.
