We consider the dynamics of strongly localized systems subject to dephasing noise with arbitrary correlation time. Although noise inevitably induces delocalization, transport in the noise-induced delocalized phase is subdiffusive in a parametrically large intermediate-time window. We argue for this intermediate-time subdiffusive regime both analytically and using numerical simulations on single-particle localized systems. Furthermore, we show that normal diffusion is restored in the long-time limit, through processes analogous to variable-range hopping. With numerical simulations based on Lanczos exact diagonalization, we demonstrate that our qualitative conclusions are also valid for interacting systems in the many-body localized phase.