Inside Ethiopia’s Data Centers: Who Owns Them, Where They Are, Why They Matter

article-banner-img

Ethiopia is quietly building the digital backbone it has long lacked.

. . .

Data centers, once few and far between here, are now rising in Addis Ababa and its ICT Park. They are changing how governments, banks, telcos, and tech firms host and move data. They are also reshaping how the country participates in the global internet economy.

This is the story of those facilities, the companies behind them, and why they matter today.

A data center is a building full of servers and network gear. It stores and processes data for websites, apps, cloud platforms, mobile money systems, and more. If you stream a video, send a payment, or upload a photo, data centers make it possible.

For Ethiopia, this infrastructure is new. Until recently, most data was hosted abroad or in small on‑site computer rooms. That left businesses with slow access, high costs, and little control over who manages their data.

Data centers are changing that.

Who Owns the Data Centers

Ethio Telecom: The state telecom provider runs several data halls. These serve Ethio Telecom’s own services, such as mobile money and internal systems. Ethio Telecom’s facilities consume megawatts of power and anchor the company’s digital operations.

Wingu.Africa: A pan‑African operator based in Djibouti, Wingu built the first major commercial data center in Ethiopia’s ICT Park in Addis Ababa. The facility can support hundreds of racks and up to 10MW of power. It opened after two years of construction and is built to Tier III standards, offering redundancy in power and cooling.

Wingu’s center is carrier‑neutral. That means any network provider or cloud service can connect their equipment there. Ethiopian Electric Utility recently signed a lease to host its own systems inside Wingu’s facility, showing that state institutions see value in these private facilities too. 

Raxio: Raxio Group, one of Africa’s leading data center companies, also operates in Ethiopia. Its ET1 facility in the ICT Park was certified Tier III for uptime and reliability. It offers colocation services where companies can rent space and connectivity for their servers.

Raxio’s investors include international partners and development finance backing. In 2025, the World Bank’s IFC announced a $100 million support package for Raxio’s African expansion, underscoring the importance of data infrastructure to broader economic goals.

Other Investors Plans from RedFox Web Solution and other tech firms signal growing interest in Ethiopia’s data infrastructure. These players have acquired land in the ICT Park and aim to offer hosting, cloud services, and virtual infrastructure locally. 

Safaricom Ethiopia, the private telecom operator that entered the market after reforms, is also building data center capacity. Its facilities handle network routing and storage for voice, internet, and telecom services.

Where These Centers Are Located

The main cluster of new facilities is in Addis Ababa’s ICT Park. This government‑designated zone attracts tech companies with infrastructure, fiber connectivity, and policy incentives. It is situated roughly 18 miles outside the city center and serves as a hub for cloud, software, and digital services. 

Beyond the ICT Park, state and corporate centers exist on or near campuses in the capital. But for private operators and carriers, Addis Ababa is the logical base. It is where the fiber backbone converges and where most digital traffic originates.

Why Data Centers Matter in Ethiopia

When data has to travel to servers in Europe or Asia, users experience delays. Ethiopian companies pay foreign hosts for space and bandwidth. Local data centers shorten these distances and cut costs. This improves the performance of apps, services, and enterprise systems.

Furthermore, keeping data inside the country gives governments and firms more control over security and compliance. It also reduces dependence on foreign infrastructure, which can be a risk in times of tension or disruption.

Local centers also underpin modern digital offerings:

  • Mobile money and fintech platforms
  • Cloud services for startups and enterprises
  • Streaming and content delivery
  • Smart infrastructure for utilities and public services

For example, Ethiopia’s major utility operator chose a commercial data center to run critical systems, highlighting how these facilities now serve core national functions.

The Road Ahead

Ethiopia’s data center scene is still young. Power reliability, regulatory clarity, and internet backbone expansion remain challenges. But the pace of investment shows confidence in long‑term growth.

What was once absent is now firmly taking shape. Ethiopia is building not just buildings full of servers, but the foundations of its next digital chapter.

Share this story
Comments (0)
U
No comments yet
Loline is an Ethiopian Digital Media that aims to empower the youth through entrepreneurship and technology.
Loline Mag
Copyright ©2026
All rights reserved.