In 2021, according to research firm Xalam Analytics, Africa accounted for only 1% of the world’s data center space. As countries across the continent strive for digital sovereignty, they are increasingly seeking partnerships to host a greater number of these critical infrastructures.

Egyptian Prime Minister Moustafa Madbouli discussed plans on Wednesday, September 18, to create a green data center in collaboration with a global consortium. The new infrastructure will rely on renewable energy and aims to export data storage and processing services. The initiative aligns with Egypt's goal of boosting its digital services exports to $9 billion by 2026.

Data centers have become increasingly important in Africa due to the continent's growing digital sovereignty drive. As highlighted in the "Data Centres in Africa" report by Oxford Business Group, commissioned by the Africa Data Centres Association, data sovereignty regulations which require data to be stored locally or within Africa's five sub-regions will drive demand for localized data storage services. Africa currently has just over 100 data centers, with more than half located in South Africa.

Egypt, strategically positioned at the crossroads of telecommunications cables connecting Africa, Asia, and Europe, could serve as a key hub for global data center providers. Several major players, including Huawei, Amazon Web Services, Google, Oracle, and Microsoft, have established data center infrastructure across the continent in recent years, with locations in countries like Kenya, South Africa, and Angola. Egypt's geographical and digital strategy offers a compelling alternative for global providers looking to expand in Africa.

Adoni Conrad Quenum