Data Centers in Cairo
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Cairo – Strategic Connectivity Linking Three Continents
Executive Summary
Cairo serves as the primary terrestrial bridge for data traffic moving between Europe, Africa, and Asia. This market is vital for international carriers and enterprises requiring high-capacity transit through major subsea cable landings. Establishing a presence here ensures reliable access to a massive domestic market while securing critical intercontinental pathways.
Cairo: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong subsea infrastructure supports global traffic flows. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Marseille serves as the nearest primary hub. |
| Power Cost | $0.05–$0.07/kWh – as of September 2025 | Competitive regional rates support large-scale deployments. |
| Disaster Risk | Moderate (4.3/10) – as of September 2025 | River flood and regional seismic activity are risks. |
| Tax Incentives | No – as of September 2025 | No specific financial breaks exist for operators. |
| Sales Tax | 14% VAT – as of September 2025 | Standard rate applied to digital and physical services. |
Network & Connectivity Ecosystem
Cairo serves as a critical intersection for the global internet. The city acts as the landing and transit point for dozens of subsea cables connecting the Mediterranean and the Red Sea.
Carrier Density & Carrier Neutrality: Carrier count: over 15. The market features approximately 15–20 carriers as of September 2025. While historically dominated by the national provider, the ecosystem now includes multiple international and local players offering diverse routing options for resilient connectivity.
Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions. As of September 2025, there are no direct physical on-ramps for major hyperscale providers in the city. Enterprises typically access cloud services via private wave or high-capacity extensions to European hubs like Marseille or Sofia.
Internet Exchange Points (IXPs): The Cairo Internet Exchange (CAIX) is the leading hub for local peering. This facility keeps domestic traffic within the country, significantly reducing latency for local users as of September 2025.
Bare Metal: High-performance compute is available through providers such as Latitude.sh. These services allow for rapid deployment of localized workloads without requiring capital investment in physical hardware as of September 2025.
Power Analysis
Energy availability and cost remain primary advantages for the Cairo data center market.
Average Cost Of Power: $0.05–$0.07/kWh, as of September 2025. These rates are significantly lower than most European hubs, providing a massive advantage for high-density compute operations. The energy mix is approximately 85% fossil fuels, largely driven by domestic natural gas production as of September 2025.
Power Grid Reliability: The local grid is well-engineered and utilizes multi-substation support in dedicated tech zones. Reliability is consistent in major business corridors like the Smart Village, where facilities use on-site generation to manage any potential fluctuations as of September 2025.
Market Access, Business & Tax Climate
Cairo is the economic center of Egypt, offering direct access to an increasingly digital population of over 100 million people.
Proximity To Key Business Districts: Data center infrastructure is concentrated in New Cairo and the Smart Village. This positioning provides low-latency access to the financial services, telecommunications, and government sectors central to the Egyptian economy as of September 2025.
Regional Market Reach: A deployment in Cairo serves as a strategic staging point for North Africa and the Levant. It is a preferred location for companies managing high-stakes transit traffic between the Mediterranean and the Indian Ocean.
Tax Advantage For Data Centers: There are no specific tax incentives for the industry. The primary financial benefit for customers is the low cost of power and labor, which effectively reduces the total cost of ownership compared to other regional hubs as of September 2025.
Natural Disaster Risk
The environmental risk profile for Cairo is Moderate (4.3/10) as of September 2025. While the city is inland, several regional factors influence the safety of its infrastructure.
- River Flood (9.9): This is the highest local risk due to the proximity of the Nile; facilities require specific elevation and site selection as of September 2025.
- Coastal Flood (9.0): This is a high regional risk that impacts the coastal landing stations providing Cairo its connectivity.
- Tsunami (5.9): This is an indirect regional risk for the Mediterranean landing points as of September 2025.
- Earthquake (4.6): Moderate seismic activity requires facilities to meet resilient structural standards.
Other hazards such as tropical cyclones are not considered material risks for this location as of September 2025.
