Egypt Data Center Market Size & Trends Forecast 2025-2033

Egypt Data Center Market Overview

Market Size in 2024: USD 223.2 Million

Market Size in 2033: USD 484.78 Million

Market Growth Rate 2025-2033: 8.26%

According to IMARC Group's latest research publication, "Egypt Data Center Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The Egypt data center market size was valued at USD 223.2 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 484.78 Million by 2033, exhibiting a CAGR of 8.26% from 2025-2033.

How AI is Reshaping the Future of Egypt Data Center Market

• Powering National AI Strategy: Egypt's government launched its second National Artificial Intelligence Strategy, driving demand for advanced data processing facilities capable of handling large-scale AI workloads and machine learning applications.
• Supporting Government Digital Transformation: The country's first government cloud computing center, inaugurated in April 2024, centralizes ministry data and deploys AI technologies, reducing reliance on expensive offshore data storage solutions.
• Enabling Smart Infrastructure: AI-powered analytics are transforming data center operations in Egypt, with facilities using intelligent systems to optimize cooling efficiency, predict maintenance needs, and reduce energy consumption by up to 25%.
• Attracting International Tech Giants: Major cloud providers are establishing local presence to serve AI and machine learning workloads, with AWS Outposts now available in Egypt, bringing hybrid cloud capabilities to enterprises across the country.
• Accelerating Sovereign Cloud Adoption: Partnerships like Cassava Technologies with Accenture are bringing sovereign AI cloud solutions to Egypt, allowing organizations to process sensitive data locally while leveraging cutting-edge AI infrastructure.

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Egypt Data Center Market Trends & Drivers:

Egypt's data center market is experiencing remarkable momentum thanks to aggressive government initiatives and infrastructure modernization. The Digital Egypt initiative is fundamentally reshaping the country's tech landscape, with the government launching its first national cloud computing center in April 2024 on the Ain Sokhna highway. This facility alone represents a paradigm shift—Egypt previously stored government data abroad at significant cost, but now processes everything domestically. The Ministry of Communications and Information Technology is doubling down with the second edition of its National AI Strategy rolling out, creating massive demand for facilities that can handle complex computational workloads. With 13 existing data centers and 7 new facilities under development across more than four cities, the infrastructure boom is creating thousands of jobs and positioning Egypt as a regional digital hub.

The surge in cloud adoption and digital transformation is fundamentally changing how Egyptian businesses operate. Major international players are making substantial commitments—Orange Egypt invested USD 135 million in its New Administrative Capital Data Centre, while Raya Data Center secured USD 15 million from Africa50 to build one of Egypt's top Tier III certified facilities. These aren't just buildings with servers; they're sophisticated operations designed to support everything from hybrid cloud architectures to edge computing. Companies across banking, telecommunications, and e-commerce are migrating workloads to local data centers to improve latency and comply with data sovereignty requirements. The colocation market is particularly hot, with enterprises preferring to lease space in professionally managed facilities rather than building their own, creating a ripple effect throughout the IT services sector.

Egypt's strategic geographic position is a game-changer for the data center industry. Sitting at the crossroads of Africa, Europe, and Asia with multiple undersea cable landings, the country offers low-latency connectivity that's hard to match in the region. This makes Egyptian data centers incredibly attractive for international content providers and cloud platforms looking to serve North Africa and the Middle East. The government's push for green energy is also reshaping the industry—facilities are increasingly powered by renewable sources, with the country targeting USD 40 billion in investments for green hydrogen and renewable energy technology. Companies like Raya Holding have partnered with Huawei Egypt specifically to develop environmentally-friendly data centers, recognizing that sustainability isn't just good PR—it's becoming a requirement for attracting multinational clients who have strict ESG mandates.

Egypt Data Center Industry Segmentation:

The report has segmented the market into the following categories:

Analysis by Component:

• Solution
• Services

Analysis by Type:

• Colocation
• Hyperscale
• Edge
• Others

Analysis by Enterprise Size:

• Large Enterprises
• Small and Medium Enterprises

Analysis by End User:

• BFSI
• IT and Telecom
• Government
• Energy and Utilities
• Others

Regional Analysis:

• Greater Cairo
• Alexandria
• Suez Canal
• Delta
• Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Egypt Data Center Market

• April 2024: Egypt inaugurated its first government Data and Cloud Computing Center on the Ain Sokhna highway, establishing a pioneering hub for large-scale data analysis and AI in Egypt and North Africa, eliminating costly offshore data storage.
• November 2024: Orange Egypt showcased its USD 135 million New Administrative Capital Data Centre project at Cairo ICT'24, highlighting its role in advancing the nation's economic and digital transformation with state-of-the-art smart city innovations.
• December 2024: Raya Holding announced a USD 15 million investment from Africa50 to build a Tier III Data Center in Egypt, with the facility's market valuation exceeding EGP 2.2 billion and construction set to begin shortly.

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