Data Centers in Cairo
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Cairo – Strategic Hub for Africa & Middle East
Executive Summary
Cairo is the essential digital gateway for any business targeting Egypt's massive consumer market and the broader North Africa and Middle East region. While direct cloud access is still developing, establishing a presence here provides a critical latency advantage for reaching over 100 million people. This market is for companies focused on capturing future growth by deploying infrastructure close to a rapidly digitizing population.
Cairo: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Developing international capacity and diverse subsea cable landings. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are in Europe (Marseille, Athens); access via network partners. |
| Power Cost | EGP 2.50–3.50/kWh (est.) | Competitive pricing helps manage operational costs for dense deployments. |
| Disaster Risk | Medium (4.3/10) – as of September 2025 | Dominated by flood and moderate seismic risk; mitigated in modern facilities. |
| Tax Incentives | No | No specific incentives exist for data center development or operation. |
| Sales Tax | 14% VAT – as of September 2025 | Standard rate applies to most IT services and equipment purchases. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality The market features 2 data centers with access to a growing number of local and regional carriers, as of September 2025. Carrier-neutral facilities provide the primary interconnection points, allowing businesses to optimize network routes and costs for serving the Egyptian market.
Direct Cloud On-Ramps There are no direct cloud on-ramps from hyperscale providers within Cairo, as of September 2025. Businesses connect to the 0 available cloud regions by procuring private network extensions (PNI/wave) to major European hubs like Marseille, Athens, or Milan. This allows for secure, reliable access to providers like AWS, Google Cloud, and Microsoft Azure.
Internet Exchange Points (IXPs) The primary local exchange is the Cairo Internet Exchange (CIX). Peering at CIX is critical for any company looking to deliver low-latency services within Egypt, as it keeps domestic traffic from making an inefficient round trip to Europe.
Bare Metal Bare metal server options are available in Cairo, providing dedicated, high-performance computing resources. Providers like Hivelocity and Leaseweb offer solutions suitable for workloads that require direct hardware access and consistent performance.
Power Analysis
Average Cost Of Power The estimated industrial power cost in Cairo ranges from EGP 2.50–3.50/kWh, as of September 2025. These relatively low energy prices provide a significant operational cost advantage compared to more mature European markets, especially for high-density computing.
Power Grid Reliability Egypt's national power grid has seen substantial investment and modernization. Data centers in Cairo are typically located in areas with reliable grid infrastructure, supported by multiple substations and equipped with enterprise-grade N+1 or 2N UPS systems and diesel generator backup.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in the Cairo metro are strategically located to serve the country's primary financial, technology, and government centers. This proximity ensures low-latency connectivity for banking, content delivery, and enterprise applications concentrated in the capital.
Regional Market Reach An infrastructure deployment in Cairo effectively serves the entire Egyptian population of over 110 million. It also functions as a strategic digital hub for delivering services with improved performance across North Africa and into the Levant.
Tax Advantage For Data Centers There are no specific tax incentives for data center construction or operation in Egypt. The primary financial advantage comes from competitive operating costs, particularly power, and direct access to a large and expanding digital consumer market.
Natural Disaster Risk
Cairo has a Medium overall disaster risk profile, with a score of 4.3 out of 10, as of September 2025. The risk assessment indicates that while the overall threat is moderate, operators must engineer facilities to withstand specific, well-understood hazards.
Key natural risks include:
- River Flood: The most significant risk (9.9/10), associated with the Nile River. Data centers are sited outside of historical floodplains and built with appropriate flood mitigation measures.
- Earthquake: A moderate seismic risk (4.6/10) requires that facilities be constructed to modern earthquake-resistant standards.
- Drought: A minor concern (2.2/10) with minimal direct impact on data center operations.
