By Morrison Rwakakamba *
Uganda wants a ten-times bigger economy — 500 billion dollars by 2040. Today we produce about 2,050 megawatts of electricity, mostly from water power. But to support factories, farms, homes, electric transport, and data centers at that scale, we realistically need tens of gigawatts — perhaps 30-50 gigawatts or more of installed capacity. That is a massive jump. A $ 500 billion economy runs on mostly gigawatts and rarely on megawatts. Right now, the wires and poles cannot deliver all the electricity that we already produce. Blackouts and weak supply slow everything down. New demands are arriving and will make problems worse unless we fix the system fast.
Electric motorcycles from companies like Spiro, GOGO, and Zembo are expanding. Today there are only a few thousand electric vehicles on the roads — mostly motorcycles — using a small amount of power, perhaps just a few megawatts at peak from charging and battery swaps. But growth is quick. One company targets 50,000 electric motorcycles soon, and the national strategy aims for hundreds of thousands. In the next five years the fleet could reach tens or hundreds of thousands. This will push e-mobility electricity demand to 120 megawatts or more at peak as charging stations multiply. Electric cars are also starting to appear and will add further demand as more people and businesses adopt them. Riders save up to half on daily costs, more jobs are created, and transport becomes cleaner and cheaper.
Even bigger new demand is coming from data centers and artificial intelligence. Uganda is already home to Africa’s first major artificial intelligence data center project — the Synectics Technologies 1.2 billion dollar facility needing 100 megawatts of renewable power, built with partners like Schneider Electric and Nvidia. Globally, artificial intelligence is driving an explosion in electricity use. Data center demand worldwide is set to double by 2030, reaching around 945 terawatt-hours. Artificial intelligence-optimized servers alone will jump dramatically. Some single facilities now demand over 100 megawatts — as much power as a small city. The world needs huge amounts of cheap, clean, reliable power.
Uganda can turn this global need into real money. We have hydro, good renewable resources, and land. With stronger transmission and distribution, we can attract more data centers and artificial intelligence facilities. Instead of only exporting power, we can export data services and “intelligence,” earning foreign exchange and creating good jobs. Uganda can become a green digital hub for Africa.
According to the IRENA study on renewable power costs in 2025, new land-based wind power costs only about 3 US cents per unit of electricity. Solar is around 4 cents and hydro about 6 cents. These are among the cheapest new sources. Wind fits well in Karamoja, along Lake Victoria shores, and near Mount Elgon. Adding it fast, together with solar, gives cheap power for farms, factories, electric bikes and cars, and data centers.
Tariffs affect competitiveness. In Uganda, large industries pay around UGX 300 per kilowatt-hour (about 8 US cents), while domestic users pay higher. In fast-growing countries like Ethiopia, Vietnam, and parts of India, industrial power is often cheaper or more predictable. This helps them attract factories and investors. Data centers and artificial intelligence operators hunt for the lowest reliable green power. Adding cheap wind and solar plus fixing the grid will let Uganda offer competitive tariffs and win investments that might otherwise go elsewhere.
Uganda’s electricity transmission and distribution infrastructure is outdated and bottlenecked. Despite 2,050+ megawatts of generation capacity, 17% of electricity is lost in transmission and distribution (poles and wires), costing the country over 500 million US dollars annually in wasted potential, higher tariffs, and slowed growth. This cripples industrialization and rural access. Fixing and modernizing transmission and distribution will cost real money — estimates point to 3–5 billion US dollars or more over the next 10 years to expand and strengthen the network so power reaches farms, industries, electric transport, and new data centers and more without waste. The whole energy sector needs much bigger investment soon.
We can raise this money. Locally: use government budget allocations, issue bonds that pension funds and Ugandans can buy, and create clear public-private partnerships. Internationally: partner with development banks like the World Bank and African Development Bank for long term highly concessional loans and grants, attract private developers and equity for generation and data centers, and use climate and green funds that support clean projects. Blended finance mixes public and private money to move faster.
Farmers know that without good roads and affordable fuel, tractors and markets cannot work. Industrialists know unreliable or expensive power kills profits and jobs. Our electricity system is the same. Electric bikes, cars, and artificial intelligence data centers are the new tools of growth. The IRENA numbers prove wind and solar are cheap. Global artificial intelligence is creating massive demand that Uganda can serve and profit from with clean power. Several billion dollars are needed to strengthen the grid.
Leaders and bureaucracy have known the problems for years. Some budget money exists, but the scale and speed remain too small. Every delay means higher costs for farmers and industries, lost investments in electric transport and data centers, and slower progress to the 500 billion dollar goal. We must raise capital locally and internationally, cut delays, and build with real urgency. The tools, the cheap renewable options, and the global opportunities are clear. What is missing is bold, fast action. Start the wartime-scale push on transmission corridors, grid modernization, and rapid diversification now — before more chances are lost.
As the Bible says in John 8:12, “I am the light of the world. Whoever follows me will never walk in darkness, but will have the light of life.” The Koran teaches in Surah An-Nur (24:35) that “God is the Light of the heavens and the earth.” And Thomas Edison, one of the greatest inventors of electricity, declared his vision: “We will make electricity so cheap that only the rich will burn candles.” Let these words inspire us to bring reliable, affordable power to every corner of Uganda and light the way to a prosperous future.
*Morrison Rwakakamba, Coffee farmer, Nyeibingo village, Rukungiri. mrwakakamba@gmail.com
