Egypt represents an investment opportunity in data centers
Egypt has become a strategic location for data centers, attracting numerous investors thanks to its prime location at the crossroads of data links between Africa, Asia and Europe, and its access to abundant renewable energy sources to power its projects. However, there is still much to be done to attract more investment to this sector.
Boosting regional growth
Egypt is already a growth engine for the sector across the region. The country has contributed to expectations that the size of the data center market in Africa will grow at a compound annual growth rate of 12% between 2019 and 2025, exceeding USD 3 billion by 2025.
International comparison and key projects
Although the Middle East and Africa still have a lot of catching up to do, the data center map shows that the Middle East has 175 data centers and Africa has 102, compared to 1,694 in Western Europe and 2,793 in North America. Egypt, in particular, has 14 data centers.
A consortium including Swicorp Infra Capital (SIC), Income Egypt and Record Digital Asset Venture announced that it will build and operate a green data center (facilities using energy-efficient technologies) in Egypt under a memorandum of understanding signed with the Ministry of Information and Communication Technologies.
In 2023, UAE-based Khazna Data Centers announced it would build a data center in Cairo, Egypt. That same month, GPX Global Systems said it would expand its Cairo 2 data center, nearly quadrupling its IT capacity.
Sources of information: Enterprise, May 2024 and Data Center Dynamics, December 2023
Country efforts for data centers
The government is providing fiber-optic cable routes across borders to ensure the secure passage of international data through Egypt, in addition to offering advanced services such as cloud computing and other communication services. Egypt processes a large amount of government and banking data, electronic payment systems, and a large segmentation of smartphone users, according to our sources.
Egypt’s first data and cloud computing center
Egypt has taken a big leap into the technological future with the launch of its first data center and cloud computing.
The “Data and Cloud Computing Center” is the first big data and artificial intelligence analysis and processing center in Egypt and North Africa, saving time, effort and money, thus empowering new investment opportunities.
President Abdel Fattah El-Sisi inaugurated Egypt’s first government data and cloud computing center, marking a significant step in the country’s technological advancements. This datacenter, which will serve as a central repository for ministerial data, will be protected against cyber threats and unauthorized access, and will support the integration of artificial intelligence into government operations to improve decision-making.
This data center was a major investment in infrastructure, which plays a crucial role in Egypt’s modernization. Egypt is strategically well positioned as a major global data transmission hub, taking advantage of the numerous undersea cables that crisscross the country. This launch reinforces Egypt’s commitment to technological progress and self-sufficiency in data storage, reducing reliance on costly foreign solutions.
Sources of information: Edge Middle East, April 2024. and CIO, May 2024
Inpro’s case studies in Africa
At Inpro we have extensive experience in the implementation of data center projects. We develop customized engineering solutions for power generation plants in critical facilities in several countries.
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