By Business Insider Reporter
As iXAfrica Data Centres and EdgeNext unveil plans to expand edge infrastructure across East Africa, experts say Tanzania must take strategic action to benefit from this regional digital transformation.
The two companies announced a partnership on Wednesday, June 25, 2025, aimed at delivering low-latency, AI-ready, and scalable cloud infrastructure across East Africa. iXAfrica, which operates the region’s first hyperscale data centre in Nairobi, will integrate EdgeNext’s global edge platform – including content delivery networks (CDNs), bare metal, and advanced compute services – into its existing systems.
“This alliance enables enterprises in East Africa to deploy latency-sensitive applications, deliver content seamlessly, and meet regulatory data sovereignty requirements from a local base,” said Terence Wang, CEO of EdgeNext.
The partnership targets fast-growing sectors including financial services, telecom, gaming, media, and AI, positioning Kenya as a digital hub.
However, the development has raised concerns that Tanzania risks falling behind if it doesn’t quickly strengthen its digital infrastructure and regulatory framework.
Experts call for investment, policy reform
Industry analysts say Tanzania must accelerate investment in edge data centres and fibre networks to reduce reliance on foreign or regional digital infrastructure.
Despite a booming digital economy and growing internet penetration, Tanzania lacks carrier-neutral hyperscale or edge facilities like those now being developed in Nairobi.
“Local data hosting and edge services are vital not just for speed and efficiency, but for data sovereignty and economic competitiveness,” said a digital economy consultant based in Dar es Salaam.
Experts are calling on the government to incentivise private sector investment in data centres in Dar es Salaam, Arusha, and Dodoma as well as modernising data protection laws to align with international standards
They also call for development of the cross-border data policies within the East African Community (EAC) and establishment of a public-private partnerships to scale digital infrastructure
Talent, energy also key to readiness
Analysts say that to take full advantage of edge computing and AI, Tanzania will also need to invest in cloud and data science talent, and ensure reliable energy supply for data centre operations.
Kenya’s data centre growth has been supported by both a skilled digital workforce and government-backed energy incentives.
“Edge computing infrastructure can only work if there’s skilled local talent to build and maintain it,” said an ICT policy analyst. “Tanzania must focus on training engineers and network specialists to support the next wave of innovation.”
Strategic gateway for southern markets
Due to its location and port infrastructure, Tanzania is well-positioned to serve as a digital gateway for Southern and Central African countries like Zambia, Malawi, and the DRC. Analysts suggest the country could leverage its port and transport corridors to host regional cloud services and position itself as a low-latency route for digital traffic moving south.
Avoiding the digital gap
The announcement from iXAfrica and EdgeNext comes at a time when digital competition among East African countries is intensifying.
While Kenya has made early progress with hyperscale and edge data centres, Rwanda is investing in AI and smart cities, and Uganda is expanding fibre connectivity.
Tanzania, meanwhile, has seen steady growth in mobile broadband and fintech adoption, but now faces pressure to keep pace with digital infrastructure development or risk lagging behind in the regional cloud race.
“This partnership reflects our long-term vision to build Africa’s most trusted, AI-optimised infrastructure,” said Snehar Shah, CEO of iXAfrica. “Now is the time for businesses and governments across East Africa to plug in.” As regional digital transformation accelerates, Tanzania’s window of opportunity is narrowing. Whether it becomes a hub – or a hinterland – may depend on the decisions it makes in the months ahead.
