Data Centers in Alexandria
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Alexandria – Strategic Mediterranean & North Africa Hub
Alexandria is a strategic data center market for businesses targeting North Africa and the Middle East. Its access to major subsea cable landing stations provides a critical entry point for international traffic, supporting low-latency connectivity for regional service delivery. This market is ideal for content delivery networks, logistics firms, and enterprises needing a resilient foothold in the region.
Alexandria: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good international connectivity via multiple subsea cables landing nearby. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Connect via private links to hubs like Cairo or Marseille. |
| Power Cost | EGP 2.50 – 3.75/kWh | Costs are competitive for the region but subject to market changes. |
| Disaster Risk | Medium (4.3/10) | Primary risks include river and coastal flooding; modern facilities mitigate these. |
| Tax Incentives | No | No specific data center tax incentives are currently offered. |
| Sales Tax | 14% VAT | Standard Value Added Tax applies to services, as of September 2025. |
Network & Connectivity Ecosystem
Alexandria's connectivity is defined by its proximity to critical subsea cable infrastructure. The city is a landing point for major cables connecting Europe, the Middle East, and Asia, making it a key transit hub. There are 2 data centers in this market as of September 2025.
Carrier Density & Carrier Neutrality Carrier density is developing, with services primarily from national and regional providers. Data centers in the market offer carrier-neutral access, allowing customers to connect with the provider that best meets their needs for performance and cost.
Direct Cloud On-Ramps As of September 2025, there are no direct public cloud on-ramps within Alexandria. Businesses connect to major cloud providers like AWS, Azure, and Google Cloud via private network extensions to regional hubs such as Cairo or major European locations like Marseille.
Internet Exchange Points (IXPs) Most peering occurs privately or through the national internet exchange point, CIX, located in Cairo. This arrangement centralizes traffic exchange for the country, providing a single point for efficient data routing.
Bare Metal Bare metal services are available from providers focusing on edge and regional deployments. Options from vendors like Hivelocity and phoenixNAP can be provisioned in nearby European or Middle Eastern hubs for low-latency access to the Alexandria market.
Power Analysis
Average Cost Of Power Power costs for industrial use in Alexandria are estimated between EGP 2.50 – 3.75/kWh, as of September 2025. This pricing structure helps manage operational expenditures for compute-heavy workloads.
Power Grid Reliability The national grid, which relies heavily on natural gas and hydropower, serves the Alexandria region. Data centers here are built with redundant power systems, including multiple substation feeds and on-site generators, to ensure high uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Alexandria are situated to serve the city's significant port, industrial zones, and commercial centers. This proximity is ideal for logistics, manufacturing, and trade companies requiring local data processing.
Regional Market Reach Alexandria is a key digital gateway for Egypt's population of over 100 million and acts as a connectivity point for traffic moving between Europe, the Middle East, and North Africa.
Tax Advantage For Data Centers Egypt's current tax framework does not offer specific incentives for data center construction or operation. Businesses should plan based on the standard corporate tax and 14% VAT regulations.
Natural Disaster Risk
Alexandria has a Medium overall disaster risk profile, with a score of 4.3 out of 10, as of September 2025. The primary natural hazards are environmental and geological, reflecting its coastal Mediterranean location. While the risk from flooding is high, modern data center facilities are engineered with specific site selection and flood mitigation strategies to protect critical infrastructure.
The most significant risks include:
- River Flood Risk: 9.9/10
- Coastal Flood Risk: 9.0/10
- Tsunami Risk: 5.9/10
- Earthquake Risk: 4.6/10
