Data Centers in Egypt
5 locations found
Need Help?
Tell us about your needs and our team of experts will help you find and choose the perfect Data Center and solution at the best price.
Explore Markets in Egypt
Egypt – Gateway to Africa & the Middle East
Egypt is the critical market for businesses that require a strategic digital foothold connecting Europe, the Middle East, and Africa. The country's unparalleled concentration of subsea cable landings offers a distinct latency advantage for content delivery, cloud services, and financial networks targeting a vast and growing user base.
Egypt: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A primary global transit hub, though the domestic interconnection market is still maturing. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Nearest hubs are in Europe (e.g., Marseille); private network extensions are required. |
| Power Cost | EGP 2.50–3.50/kWh (est.) | Prices are subject to regulatory changes and natural gas cost fluctuations. |
| Disaster Risk | Moderate (4.3/10) | Primary risks include river flooding, coastal flooding, and moderate seismic activity. |
| Tax Incentives | No | No specific, direct incentives are currently offered for data center development. |
| Sales Tax | 14% VAT — as of September 2025 | Standard Value Added Tax applies to most equipment and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality Carrier density is growing, with access to over 20 regional and international carriers as of September 2025. The market has historically been led by a few large entities, but carrier-neutral colocation facilities are providing more choice for interconnection.
Direct Cloud On-Ramps Direct cloud on-ramps are not available within Egypt as of September 2025. Access to major cloud providers such as AWS, Google Cloud, and Microsoft Azure is achieved through private network connections to European hubs like Marseille, Milan, or Athens.
Internet Exchange Points (IXPs) The primary peering point is the Cairo Internet Exchange (CAI-IX), which helps localize traffic and improve performance for domestic users. A significant portion of international peering is handled privately or via major European exchanges.
Bare Metal Bare metal server options are available from local and regional providers. Global bare metal providers like Hivelocity or Leasebew can serve the Egyptian market effectively from their nearby European data centers, offering a path for international firms to deploy physical hardware with low latency to the region.
Power Analysis
Average Cost Of Power Industrial power costs are estimated to be between EGP 2.50–3.50/kWh as of September 2025. This rate can provide a cost advantage compared to many European markets, although it is subject to changes in government policy and global energy prices. The grid is approximately 85% powered by fossil fuels, primarily natural gas.
Power Grid Reliability The national power grid has undergone significant upgrades, resulting in stable and reliable service in the primary commercial centers around Cairo. Modern data centers are supported by redundant grid connections and multiple substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers are primarily located in and around Cairo, offering low-latency connectivity to the nation's financial hub, government institutions, and the largest metropolitan population in the Arab world.
Regional Market Reach Egypt acts as a digital bridge connecting continents. A presence here provides an effective hub for serving over 1.5 billion people across North Africa, the Levant, the Gulf States, and Southern Europe.
Tax Advantage For Data Centers The current business climate does not offer specific tax incentives for data center investment or operations. Standard corporate tax laws apply, along with a 14% Value Added Tax (VAT) on most equipment and services.
Natural Disaster Risk
Egypt has a Moderate disaster risk profile, with an overall INFORM risk score of 4.3 out of 10 as of September 2025. The risk landscape is defined by environmental and geological factors, not severe weather events like tropical cyclones.
Key natural hazards include:
- River Flooding: High risk, particularly concentrated around the densely populated Nile River delta.
- Coastal Flooding: A significant threat to infrastructure along the Mediterranean and Red Sea coasts.
- Tsunami: A moderate risk for coastal regions, relevant for subsea cable landing stations and related infrastructure.
- Earthquake: The country is in a moderately active seismic zone, making earthquakes a notable risk.
- Drought: A recurring environmental stressor that can impact water resources and agriculture.
