Data Centers in Alexandria
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Alexandria – Strategic Mediterranean & North African Hub
Alexandria is an essential, emerging data center market, primarily serving as a critical landing point for subsea cables connecting Europe, the Middle East, and Africa. It is the ideal location for content delivery networks, carriers, and enterprises focused on low-latency access to Egypt's large population and the broader North African region. Choosing Alexandria is a strategic move to secure a digital foothold at one of the internet's major intercontinental crossroads.
Alexandria: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong subsea cable access, but limited terrestrial network density compared to primary markets. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access requires network extensions to Cairo or European hubs like Marseille or Athens. |
| Power Cost | EGP 1.50–2.20/kWh | Industrial power costs are competitive, though grid reliability varies outside major commercial zones. |
| Disaster Risk | Moderate (4.3/10) | Primarily driven by coastal and river flood risks, requiring careful site selection. |
| Tax Incentives | No | Egypt does not currently offer specific tax incentives for data center development. |
| Sales Tax | 14% VAT | The standard Value Added Tax rate applies to equipment and services, as of September 2025. |
Network & Connectivity Ecosystem
Alexandria's connectivity is defined by its strategic coastal location, making it a nexus for international data traffic rather than a hub for dense domestic peering.
Carrier Density & Carrier Neutrality The market is served by over 20 carriers, as of September 2025. This includes major international providers and Telecom Egypt, the national incumbent. Carrier-neutral facilities are available, providing essential interconnection points for the numerous subsea cable systems that land here.
Direct Cloud On-Ramps There are no direct, public cloud on-ramps within Alexandria's data centers. Businesses connect to major cloud providers by procuring private network extensions to Cairo, where some dedicated access is available, or more commonly, to major European hubs like Marseille, France.
Internet Exchange Points (IXPs) Public peering is not a major feature of the Alexandria market. Most traffic exchange occurs through private peering within carrier-neutral data centers or is routed through the primary national exchange point, CAIX, located in Cairo.
Bare Metal Bare metal server options are available in the region, typically provisioned from providers with a presence in Cairo or European markets. Services from companies like Hivelocity can provide dedicated compute resources to serve the local market.
Power Analysis
Egypt's power infrastructure is undergoing modernization, but established practices for resiliency remain critical for data center operations.
Average Cost Of Power Industrial power rates in Alexandria generally range from EGP 1.50–2.20/kWh, as of September 2025. This competitive pricing structure can significantly lower operational expenditures for high-density deployments.
Power Grid Reliability While the national grid has improved, data centers in Alexandria do not rely on it for primary uptime. All credible facilities operate with robust N+1 or 2N UPS systems and multiple on-site diesel generators with extensive fuel reserves to ensure uninterrupted service.
Market Access, Business & Tax Climate
Alexandria offers a compelling, if complex, business environment for digital infrastructure investment.
Proximity To Key Business Districts Data centers in Alexandria are positioned to serve the city's significant industrial base, its bustling port (one of the oldest in the world), and a metropolitan population of over five million people.
Regional Market Reach From Alexandria, organizations can effectively serve the entire Nile Delta region, which is home to the majority of Egypt's 100+ million people. Its subsea cable links also make it a logical point of presence for serving neighboring markets in North Africa and the Levant.
Tax Advantage For Data Centers Egypt does not currently offer specific tax incentives or holidays for data center construction or operation. Businesses should plan based on the standard corporate tax and VAT structure, though the government has made broader economic reforms to improve the investment climate.
Natural Disaster Risk
Alexandria has a moderate overall disaster risk profile, with specific environmental factors that require consideration in facility design and location.
The market's INFORM Risk score is 4.3 out of 10, classifying it as a medium-risk environment, as of September 2025. The most significant natural hazards are environmental and seismic:
- River Flood Risk: Very High (9.9/10)
- Coastal Flood Risk: Very High (9/10)
- Tsunami Risk: Moderate (5.9/10)
- Earthquake Risk: Moderate (4.6/10)
These risks underscore the importance of selecting data centers built above designated flood plains and engineered to modern seismic standards. Tropical cyclone and drought risks are negligible.
