Data Centers in Egypt
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Explore Markets in Egypt
Egypt – Strategic Hub for MENA and Global Subsea Routes
Egypt is an essential emerging market for any business targeting the Middle East, North Africa, and key transit routes between Europe and Asia. Its strategic location, coupled with a large domestic market, makes it a primary hub for content delivery, financial services, and telecommunications, despite a developing cloud connectivity landscape.
Egypt: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong subsea cable landings but developing terrestrial and cloud ecosystems. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via network providers to hubs like Marseille or Milan. |
| Power Cost | EGP 2.20-2.80/kWh | Industrial rates are competitive for the region, supporting large-scale operations. |
| Disaster Risk | Moderate (4.3/10) | Primarily driven by flood and seismic risks in specific geographic zones. |
| Tax Incentives | No | No specific incentives for data center development currently exist. |
| Sales Tax | 14% VAT | Standard value-added tax applies to most goods and services, as of September 2025. |
Network & Connectivity Ecosystem
Egypt's unique geography makes it a critical node for global data flow, with numerous subsea cables landing on its shores. The domestic market, however, is still maturing.
Carrier Density & Carrier Neutrality: The market is concentrated, with 5 data centers operated by a single provider as of September 2025. While carrier choice within facilities is limited, access to global networks is excellent due to the subsea cable infrastructure.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Egypt, as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through network extensions to European hubs such as Marseille, France. Private network connections offer secure, low-latency paths.
Internet Exchange Points (IXPs): The primary exchange is the Cairo Internet Exchange (CAIX), which facilitates most of the country's IP traffic peering. Its presence helps reduce latency for domestic users by keeping local traffic within national borders.
Bare Metal: Bare metal server options are available, providing a valuable alternative for workloads requiring dedicated physical hardware. Providers like Hivelocity and phoenixNAP can service the region, offering customized server solutions.
Power Analysis
Egypt's power infrastructure is built to support significant industrial and population demands, though it relies heavily on traditional energy sources.
Average Cost Of Power: Industrial electricity costs range from approximately EGP 2.20 to EGP 2.80 per kWh, as of September 2025. This competitive pricing makes high-density deployments financially viable. The power grid is predominantly fueled by natural gas (≈85%), with a growing contribution from hydroelectric and renewable sources.
Power Grid Reliability: The national power grid is generally stable in major commercial centers like Cairo. Data centers in these areas are supported by modern infrastructure and typically have multi-megawatt substation support and N+1 or greater redundancy for backup power.
Market Access, Business & Tax Climate
Egypt offers a gateway to a massive and growing consumer market, though the business climate presents some challenges.
Proximity To Key Business Districts: Data centers are located near Cairo’s central business districts and new technology parks. This proximity provides low-latency connectivity for the country's dense population center and its financial, government, and corporate sectors.
Regional Market Reach: An infrastructure footprint in Egypt effectively serves over 110 million domestic consumers. It also acts as a strategic digital hub for serving North Africa and the Middle East, reducing latency to millions more users across the region.
Tax Advantage For Data Centers: Egypt does not currently offer specific tax incentives for data center construction or operation. Businesses should plan for standard corporate tax rates and the 14% VAT on equipment and services.
Natural Disaster Risk
Egypt has a moderate overall disaster risk profile, with specific hazards concentrated in distinct geographical areas. The INFORM Risk score is 4.3 out of 10, as of September 2025.
Key natural hazards include:
- River Flood Risk: The highest risk factor (9.9/10), concentrated along the Nile River delta and floodplain.
- Coastal Flood Risk: A significant concern (9.0/10) for facilities located near the Mediterranean and Red Sea coastlines.
- Tsunami Risk: A notable but less frequent threat (5.9/10) for coastal infrastructure.
- Earthquake Risk: A moderate seismic risk (4.6/10), with the highest probability in the regions bordering the Red Sea.
