The Role of Energy in Achieving Digital Ethiopia 2030

The Digital Ethiopia 2030 strategy represents the nation’s ambitious blueprint for transitioning into a middle-income, knowledge-based economy. Central to this vision are the full digitization of public services, the expansion of e-commerce, and the development of a vibrant technology ecosystem. However, as Prime Minister Abiy Ahmed emphasized during the strategy’s launch in late 2025, electricity is the “lifeblood” of this transformation. Without a reliable, universal, and sustainable energy supply, the digital tools and infrastructure required to achieve these goals—ranging from data centers and mobile networks to digital ID systems—cannot function. In this context, energy is not merely a utility; it is the foundational enabler that determines the pace and inclusivity of Ethiopia’s digital future.

The Energy–Digital Nexus: Powering the Pillars

For every sector of the Ethiopian economy to achieve its 2030 targets, energy must be fully integrated into the digital roadmap. Digital transformation relies on a physical layer of infrastructure that is entirely power-dependent. For instance, the expansion of the National Digital ID system (Faida) and Digital Public Infrastructure (DPI) requires servers and biometric devices that must operate continuously, with 24/7 uptime. Similarly, the telecommunications sector—recently strengthened by the entry of private operators such as Safaricom Ethiopia—depends on thousands of base stations that require stable electricity to deliver the 4G and 5G connectivity essential for high-speed internet access.

In addition:

Public Services and Governance: The digitization of more than a thousand government services through platforms such as Mesob depends on uninterrupted electricity in regional and local government offices.

Education and Healthcare: Initiatives including SchoolNet and community health programs rely on digital tablets, cold-chain monitoring for vaccines, and online learning platforms—all of which are dependent on reliable power supply.

The Private Sector: For startups and small businesses to compete globally, access to clean, reliable energy is essential to power computers, support digital payment systems, and ensure data integrity in local data centers.

Bridging the Digital Divide through Rural Electrification

One of the major challenges in implementing Digital Ethiopia 2030 is ensuring that the digital divide does not widen between urban and rural populations. While electricity access in urban areas is relatively high, many rural communities continue to face unreliable or limited supply. To address this gap, the government’s National Electrification Program (NEP) aims to achieve 75 percent national electricity coverage by 2030 through a combination of grid expansion and decentralized off-grid solutions, including solar mini-grids.

This electrification effort is closely linked to digital agriculture, where farmers increasingly rely on AI-driven advisory services and digital marketplaces to access information and sell their produce. Without the “energy spark” in rural communities, these digital tools remain inaccessible, leaving millions of smallholder farmers excluded from the modern digital economy.

Sustainability and the Future Energy Mix

To sustain the anticipated surge in data consumption—driven by data centers, artificial intelligence applications, and digital literacy initiatives—Ethiopia is actively diversifying its energy mix. While hydropower from the Grand Ethiopian Renaissance Dam (GERD) provides a substantial baseline capacity of over 5,000 megawatts, the Digital Ethiopia 2030 strategy aligns with the country’s Climate-Resilient Green Economy vision.
This approach prioritizes the integration of solar and wind energy, while also exploring emerging options such as nuclear power, to ensure that digital growth is both rapid and environmentally sustainable. By leveraging a power grid that is already more than 90 percent renewable, Ethiopia positions itself as an attractive destination for green data centers and as a potential regional technology hub for East Africa.