Data Centers in Alexandria
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Alexandria – Strategic Hub for Mediterranean Connectivity
Alexandria serves as Egypt's primary subsea cable landing hub, making it a critical market for any business requiring low-latency network access to North Africa, the Middle East, and Europe. Its strategic coastal location positions it as an essential digital gateway, ensuring efficient data transit for telecommunications, content delivery networks, and financial services. For companies targeting these fast-growing regions, Alexandria provides the foundational infrastructure to accelerate service delivery and improve user experience.
Alexandria: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong subsea cable access underpins its global connectivity rating. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access requires private network extension from European or Middle Eastern hubs. |
| Power Cost | EGP 2.00 – 2.50/kWh | Dominated by natural gas; costs are competitive for the region. |
| Disaster Risk | Moderate (4.3/10) | Primarily driven by flood and seismic risks common to the region. |
| Tax Incentives | No | Egypt's current economic focus is on broad stability, not specific tech incentives. |
| Sales Tax | 14% VAT | Standard national rate applies to services, as of September 2025. |
Network & Connectivity Ecosystem
Alexandria's connectivity ecosystem is defined by its strategic importance as a landing point for numerous subsea cables connecting Europe, the Middle East, and Asia. This creates a unique environment for interconnection.
Carrier Density & Carrier Neutrality: The market includes a growing number of national and international carriers, concentrated within its 2 primary data center facilities as of September 2025. While smaller than established hubs, the carrier density is focused and offers significant strategic value.
Direct Cloud On-Ramps: There are no direct, in-market public cloud on-ramps as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure via private network extensions from European hubs such as Marseille or Milan, or through Middle Eastern hubs.
Internet Exchange Points (IXPs): Public peering is primarily handled through the Cairo Internet Exchange (CAIX). Most large-scale peering in Alexandria occurs privately within the data centers, directly between carriers and content providers.
Bare Metal: Bare metal server options are available, providing dedicated compute for performance-sensitive applications. Providers like Hivelocity offer solutions in the region, often deploying out of facilities in Cairo or connecting via nearby hubs.
Power Analysis
Average Cost Of Power: Industrial power costs in Alexandria typically range from EGP 2.00 – 2.50/kWh, as of September 2025. This pricing is competitive within the region and benefits from Egypt's reliance on abundant natural gas for power generation.
Power Grid Reliability: The national grid has seen significant investment and is generally stable in key commercial areas like Alexandria. Modern data centers are supported by redundant power feeds, on-site substations, and robust backup generator and UPS systems to ensure uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Alexandria are positioned to serve the city's significant industrial, logistics, and port-related activities. The location is ideal for businesses that depend on the flow of goods and data through the Suez Canal corridor.
Regional Market Reach: Alexandria is the digital gateway to Egypt's population of over 110 million and a low-latency hub for serving markets across North Africa and the Levant. Its dense subsea cable connectivity makes it a primary point of presence for reaching a vast user base.
Tax Advantage For Data Centers: Egypt does not currently offer specific tax incentives for data center development or operation. The government's fiscal policy prioritizes broader economic goals, so businesses should model their investments based on the standard 14% VAT and corporate tax structures.
Natural Disaster Risk
Alexandria has a moderate overall disaster risk profile, with a score of 4.3 out of 10, as of November 2023. The primary environmental threats are related to its coastal location and regional geology.
Key natural hazards include:
- River Flood: Score 9.9/10
- Coastal Flood: Score 9.0/10
- Tsunami: Score 5.9/10
- Earthquake: Score 4.6/10
While tropical cyclones and drought present minimal risk, facility designs must account for significant water-related and seismic events.
