Data Centers in Egypt

Egypt – The Strategic Hub for Global Data Transit

Executive Summary

Egypt serves as the indispensable terrestrial bridge for subsea cable traffic moving between Europe, Asia, and Africa. For enterprises requiring massive scale and strategic transit, this market offers unmatched geographical leverage and some of the most competitive operational costs in the Mediterranean region.

Egypt: At A Glance

Network & Connectivity Ecosystem

Egypt's position as a global transit point defines its digital infrastructure. While the market has been historically centralized, it is moving toward increased neutrality to support massive international traffic flows.

Carrier Density & Carrier Neutrality: Carrier count: over 15 as of January 2026. The ecosystem includes a mix of the national incumbent and a growing number of regional players. Carriers are increasingly focusing on neutral facilities to support complex international transit requirements.

Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions as of January 2026. There are currently no direct physical on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure in the country. Organizations typically use private network interconnects or dedicated waves to reach the nearest cloud hubs in Southern Europe or the Middle East.

Internet Exchange Points (IXPs): The Cairo Internet Exchange (CAIX) is the primary hub for local traffic exchange, keeping domestic data within the country to reduce latency for local users.

Bare Metal: Reliable bare metal options are available through international providers such as OVHcloud and Leaseweb. These services provide high-performance compute without the management overhead of physical colocation.

Power Analysis

Egypt has transformed its power sector from a period of shortages to a position of surplus, making it a reliable destination for energy-intensive deployments.

Average Cost Of Power: $0.04 – $0.06/kWh, as of January 2026. The energy mix consists of approximately 85% natural gas, 10% hydro, and 5% renewables like solar and wind. These rates are among the most competitive in the region, offering a significant operational advantage for high-density compute.

Power Grid Reliability: The grid in major corridors like Cairo and Alexandria is well-engineered and supported by redundant substations. Modern facilities in these areas are purpose-built to maintain high uptime regardless of occasional grid fluctuations.

Market Access, Business & Tax Climate

Egypt acts as a gateway for the broader Middle East and North Africa region, combining a massive domestic population with a strategic location for global data transit.

Proximity To Key Business Districts: Data centers are centrally located near Cairo Smart Village and New Cairo. These areas house the nation’s financial services, telecommunications, and government sectors, making physical proximity vital for low-latency local applications.

Regional Market Reach: Egypt effectively serves over 100 million domestic consumers and acts as a pivot point for data moving between Europe, East Africa, and the Arabian Peninsula.

Tax Advantage For Data Centers: No specialized tax incentives exist for the industry at this time. Businesses find their financial edge through low power costs and competitive labor rates rather than through corporate tax breaks as of January 2026.

Natural Disaster Risk

Egypt maintains a Moderate (4.3/10) risk profile as of January 2026. While the country avoids many tropical weather extremes, localized environmental factors require specific site selection diligence for long-term resilience.

River Flood (9.9): This is a significant risk primarily associated with the Nile Delta and low-lying areas near the river.

Coastal Flood (9.0): This represents a major regional risk for Alexandria and other Mediterranean coastal zones.

Tsunami (5.9): This is a documented regional risk for Mediterranean coastal infrastructure and landing stations.

Earthquake (4.6): Moderate seismic activity is possible, requiring facilities to adhere to specific structural engineering standards.

Drought (2.2): This is a minor hazard that can impact long-term cooling water availability for certain facility types.