Data Centers in Egypt

Egypt – Connecting Continents at a Digital Crossroads

Egypt's strategic location, hosting a massive concentration of global subsea cables, makes it an essential hub for any business targeting the Middle East, Africa, and Europe. While the local colocation market is still developing, the country's unparalleled international connectivity provides a unique opportunity for deploying latency-sensitive infrastructure that serves multiple continents from a single point. This market is ideal for network providers, CDNs, and enterprises focused on large-scale, cross-regional data transit.

Egypt: At A Glance

Network & Connectivity Ecosystem

Egypt's unique geography makes it one of the most important transit points for global data traffic. Over a dozen major subsea cable systems land here, creating a bottleneck of opportunity for network-centric businesses.

Carrier Density & Carrier Neutrality The market includes a focused group of international carriers leveraging the subsea cable landing stations, alongside the primary national provider. While still maturing, the carrier-neutral data center scene is growing, providing more choice for interconnection, as of September 2025.

Direct Cloud On-Ramps There are no direct cloud on-ramps within Egypt, as of September 2025. Businesses connect to major cloud providers by procuring private connectivity through network partners. The nearest major cloud regions and on-ramp hubs are in Europe (Marseille, Milan) or the Gulf (Dubai, Abu Dhabi).

Internet Exchange Points (IXPs) The primary Internet Exchange is the Cairo Internet Exchange (CIX), which facilitates local traffic peering and improves domestic network performance. However, a significant portion of international peering occurs privately within data centers or is routed through European exchanges.

Bare Metal Bare metal server availability is emerging in Egypt, with global providers beginning to establish a presence. Options from providers like Hivelocity can serve regional needs, often deployed in key carrier-neutral facilities.

Power Analysis

Egypt's government has invested heavily in stabilizing and expanding its power generation capacity, making the grid more reliable than many of its regional peers.

Average Cost Of Power Industrial power costs typically range from EGP 1.80 to 2.70/kWh, as of September 2025. This competitive pricing is supported by the country's abundant natural gas reserves, which fuel approximately 85% of its electricity generation. This cost structure provides a predictable operational expense model for high-density deployments.

Power Grid Reliability The national power grid is generally stable in Cairo and other major industrial areas where data centers are located. Modern facilities are supported by redundant power feeds from separate substations, along with the standard N+1 or 2N UPS systems and backup generators required for high uptime.

Market Access, Business & Tax Climate

Egypt's business environment is focused on attracting foreign investment into its growing digital economy and leveraging its strategic location.

Proximity To Key Business Districts Most data centers are located in or near Cairo, the nation's undisputed economic and political center. This proximity serves the country's largest population base, financial institutions, and corporate headquarters.

Regional Market Reach With a population of over 100 million and its critical position as a network bridge, Egypt provides effective reach into North Africa and the Middle East. For network traffic, it is one of the lowest-latency points for connecting Europe with Asia.

Tax Advantage For Data Centers While there are no specific tax holidays or credits aimed directly at data center operators, the government's broader economic strategy encourages foreign investment in the technology sector. This can lead to favorable terms within special economic zones or for large-scale infrastructure projects.

Natural Disaster Risk

Egypt has a moderate overall disaster risk profile, with specific geographic vulnerabilities that are well-understood and manageable with proper site selection.

The country's composite INFORM Risk score is 4.3 out of 10, classifying it as a medium-risk location, as of September 2025. The primary natural hazards are environmental and seismic, not meteorological. Key risks include:

• River Flood (9.9/10): A significant risk in areas adjacent to the Nile River, requiring careful site selection away from floodplains.
• Coastal Flood (9/10): A material risk for facilities located in low-lying coastal areas like Alexandria, where many subsea cables land.
• Tsunami (5.9/10): A moderate risk along the Mediterranean and Red Sea coastlines.
• Earthquake (4.6/10): The region is seismically active, and data centers must be built to modern seismic engineering standards.