Data Center Oversight Mandate Shifts to Ethiopia’s Communication Authority

As interest mounts in leveraging Ethiopia’s increasing hydroelectric power output, regulatory shifts are underway to accommodate prospective entrants in emerging industries.

Balcha Reba (Eng), Director General of Ethiopia’s Communication Authority (ECA), said 11 data centers focused on crypto-mining services have either begun establishing operations or are in the process of doing so in Ethiopia’s ICT park.

Speaking to Shega at the sidelines of the Internet Development Conference last week, he revealed that licensing and oversight for data center businesses has shifted from the Ministry of Innovation and Technology to the Authority.

“Ethiopia’s weather and access to hydroelectric power make it ideal for data centers,” Balcha told Shega.

Ethiopia currently generates around 5,200 MW of power, with the pending completion of the Grand Ethiopian Renaissance Dam possibly doubling the supply at one of the cheapest rates in the world. Last week, Phoenix Group, a cryptocurrency firm listed on the Abu Dhabi Stock Exchange (ADX), signed an 80-mega-watt power purchase agreement with Ethiopia as part of its global strategy to diversify operations. 

The Director also noted that three organizations, Wingu Africa, Redfox, and Raxio, that provide Data Center as a Service (DCaaS), have begun operations after investing tens of millions of dollars.

ECA is increasingly playing a prominent role in Ethiopia’s information, technology, and telecommunications landscape. The Authority was established as an independent agency five years ago through Proclamation 1148/2019. In its short stint, ECA’s powers have expanded to include oversight over Personal Data Protection following the ratification of the landmark bill in April 2024.

Balcha says they are in the process of codifying directives that will help implement the data proclamation as Ethiopia moves towards accession into the World Trade Organization and the African Continental Free Trade Area (AfCFTA).

“Stipulating the rights and responsibilities of stakeholders around data is critical,” the Director said.

He expects the mass awareness creation campaign scheduled to begin in the third quarter of the fiscal year to create public momentum and consciousness about data rights.

The Director was among the keynote speakers at the Internet Development Conference alongside Belete Mola (PhD), Minister of Innovation & Technology, and Demos Kyriacu, Deputy CEO of Wingu Africa. Panel discussions and presentations centered on expanding internet governance and access across Africa revealed alarming figures about the state of the continent’s network.

In addition to challenges regarding access, the digital gender divide and transparency concerns were also highlighted during the three-day conference.

Attendees forwarded questions about the costs of recurring internet blackouts implemented by the Ethiopian government during periods of political unrest. According to a report by the Center for Rights and Democracy, at least 26 incidents of internet shutdowns have occurred since 2016, leading to hundreds of millions of dollars in GDP loss.

Abiyou Bayou (PhD), Senior Advisor at MiNT, argued that sometimes the possible destruction that could arise from letting people get online in those turbulent episodes would be worse than turning it off.