Data Centers in Cairo
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Cairo – Key Hub for North Africa & the Middle East
Executive Summary
Cairo is a critical emerging market for digital infrastructure, serving as a digital bridge between Africa, the Middle East, and Europe. Its strategic location makes it the premier choice for businesses targeting millions of consumers and enterprises across the region. Deploying infrastructure here significantly reduces latency and improves user experience, directly impacting service adoption and revenue.
Cairo: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Developing ecosystem with strong foundational fiber and subsea cable access. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via network extension from primary European hubs like Marseille. |
| Power Cost | EGP 2.50 – 3.50/kWh | Competitive pricing for the region supports scalable deployments. |
| Disaster Risk | Moderate (4.3/10) – as of September 2025 | Primary risks include river flooding and seismic activity; manageable with proper facility design. |
| Tax Incentives | No | Egypt's market challenges and economic climate do not favor specific data center incentives. |
| Sales Tax | 14% VAT – as of September 2025 | Standard Value-Added Tax applicable to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Over 2 data center operators are active in Cairo, as of September 2025. The market is building a foundation for carrier-neutral facilities, offering access to a growing number of local and international carriers.
Direct Cloud On-Ramps: Cairo has 0 direct cloud on-ramps, enabling access to 0 cloud regions locally as of September 2025. Hyperscale cloud access is primarily achieved via network fabrics and private network interconnects (PNI) extending from major European hubs like Marseille, Athens, or Milan.
Internet Exchange Points (IXPs): The Cairo Internet Exchange (CAIX) is the main IXP, enabling efficient local traffic exchange between carriers and content providers. Peering at CAIX is essential for reducing latency for Egyptian end-users.
Bare Metal: Bare metal server options are available, providing dedicated compute for performance-sensitive applications. Providers such as Hivelocity and phoenixNAP can serve the market through regional and international deployments.
Power Analysis
Average Cost Of Power: Industrial electricity costs in Cairo are estimated between EGP 2.50 – 3.50/kWh, as of September 2025. This competitive rate helps control operational expenditures for high-density compute and storage infrastructure. The grid mix is dominated by natural gas, with growing contributions from hydroelectric and renewable sources.
Power Grid Reliability: The power grid serving Cairo's commercial and industrial zones is generally stable. Data centers are engineered with significant redundancy, including multiple substations, UPS systems, and on-site generators to ensure uninterrupted uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers are strategically located in or near areas like Smart Village and New Cairo. These locations house major multinational corporations, financial institutions, and technology companies, ensuring low-latency connectivity to key commercial hubs.
Regional Market Reach: Cairo is the ideal location for serving Egypt's population of over 110 million. It also acts as a powerful digital hub for reaching adjacent markets across North Africa and the Levant with minimal delay.
Tax Advantage For Data Centers: There are no specific tax incentives for data center development or operation in Egypt as of September 2025. Businesses operate under the standard corporate tax framework, with the primary financial advantage being access to a large and rapidly growing digital market.
Natural Disaster Risk
Egypt has a Moderate disaster risk profile, with an INFORM Risk score of 4.3 out of 10, as of September 2025. While the overall risk is manageable, operators must engineer facilities to mitigate specific threats.
The most significant natural hazards for the Cairo metro are:
- River Flood: A high risk (9.9/10) due to the city's proximity to the Nile River and its delta.
- Coastal Flood: A notable national risk (9.0/10) that primarily impacts subsea cable landing stations on the Mediterranean and Red Sea coasts, not the inland capital itself.
- Earthquake: A moderate seismic risk (4.6/10) requiring facilities to be built to appropriate structural codes.
