Data Centers in Cairo
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Cairo – Strategic Hub for MENA Connectivity
Cairo is emerging as a critical digital gateway for the Middle East and North Africa (MENA). For businesses requiring low-latency access to over 475 million people, Cairo provides a strategic base to deploy infrastructure, improve application performance, and secure a foothold in this rapidly growing market. The city's location, combined with significant subsea cable landings, makes it an essential interconnection point between Europe, Asia, and Africa.
Cairo: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong strategic location bridging continents with growing fiber infrastructure. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via network links to European hubs like Marseille and Milan. |
| Power Cost | EGP 1.94/kWh (≈$0.04/kWh) – as of December 2024 | Highly competitive pricing offers significant operational cost advantages for dense deployments. |
| Disaster Risk | Medium (4.3/10) – as of September 2025 | Primary risks include river flooding and seismic activity; facilities are engineered accordingly. |
| Tax Incentives | Varies | Recent 2024 tax packages offer simplified procedures for specific business activities. |
| Sales Tax | 14% VAT – as of September 2025 | Standard Value Added Tax rate applied to goods and services. |
Network & Connectivity Ecosystem
Cairo’s connectivity ecosystem is expanding, driven by its unique geographical position and government investment in digital infrastructure.
Carrier Density & Carrier Neutrality: The market features over 20 regional and international carriers as of September 2025. Carrier-neutral facilities provide access to key providers like Telecom Egypt, Orange, Vodafone, and Etisalat, offering diverse options for redundancy and transit.
Direct Cloud On-Ramps: There are 0 direct on-ramps to hyperscale cloud providers within Cairo as of September 2025. Businesses typically establish private network connections (PNI/wave) to major European cloud hubs such as Marseille, Milan, or Frankfurt to achieve secure, low-latency cloud access.
Internet Exchange Points (IXPs): The market is served by two primary exchanges: the Cairo Internet Exchange (CAIX) and the Egypt Internet Exchange (EG-IX). These IXPs are vital for localizing traffic, reducing latency for Egyptian end-users, and improving overall network performance by facilitating direct peering between service providers.
Bare Metal: Bare metal server options are available from several providers in Cairo. These services are ideal for workloads requiring dedicated physical resources, such as high-performance computing or security-sensitive applications. Providers like OVHcloud offer solutions in the region.
Power Analysis
Egypt offers some of the most competitive power pricing in the region, making it an attractive market for power-intensive deployments.
Average Cost Of Power: Industrial power rates are approximately EGP 1.94/kWh (around $0.04/kWh) as of December 2024. This low cost provides a substantial operating expense advantage compared to European or other Middle Eastern markets. The national grid is primarily powered by natural gas (≈85%), with hydroelectric (≈10%) and renewables (≈5%) also contributing to the mix as of September 2025.
Power Grid Reliability: The power grid supporting Cairo's primary data center zones is well-engineered, with facilities typically fed by multiple substations to ensure high levels of uptime. Data centers offer standard N+1 or 2N redundancy to meet enterprise availability requirements.
Market Access, Business & Tax Climate
Cairo provides a strategic base for accessing both a large domestic population and extensive regional markets.
Proximity To Key Business Districts: Data centers are located strategically near key commercial and technology zones like New Cairo and Smart Village. This proximity allows businesses to connect directly to financial services, government entities, and a dense population of over 22 million in the metropolitan area.
Regional Market Reach: With its extensive network of subsea cables, Cairo is perfectly positioned to serve as a digital hub for North Africa and the Middle East. Deploying infrastructure here dramatically reduces latency to millions of users across the region compared to hosting in Europe.
Tax Advantage For Data Centers: Egypt does not offer specific tax incentives for data center construction or operation. However, the government introduced new tax packages in September 2024 aimed at simplifying procedures and boosting economic activity for certain types of businesses and startups.
Natural Disaster Risk
Egypt has a medium overall disaster risk profile, with an INFORM Risk score of 4.3 out of 10 as of September 2025. Data centers in the Cairo area are designed to mitigate the most relevant threats.
The primary natural hazards for the region include:
- River Flood: Score of 9.9/10, reflecting the proximity of the dense urban area to the Nile River.
- Coastal Flood: Score of 9.0/10, a national-level risk for Egypt's Mediterranean and Red Sea coastlines.
- Tsunami: Score of 5.9/10, primarily a risk for coastal regions rather than inland Cairo.
- Earthquake: Score of 4.6/10, indicating a moderate seismic risk for which modern buildings are engineered.
