Egypt's data center market is seeing a surge in investment. On September 18, Prime Minister Moustafa Madbouli unveiled a green data center project, which will be developed in partnership with international investors.

Tech companies Intro Technology and Oman Data Park have signed a memorandum of understanding to build a data center in Egypt's Suez Canal Economic Zone. Valued at $450 million, the facility is expected to provide cloud solutions, Internet of Things (IoT) services, and drive digital transformation in both Egypt and the wider Middle East and North Africa (MENA) region.

“We look forward to working together to provide digital solutions through advanced data centers that meet the growing needs of companies worldwide to establish a presence in the region,” said Maqbool Al Wahaibi, CEO of Oman Data Park. The data center will offer over 80,000 square meters of operational space.

This partnership comes amid a surge in investments in Egypt's data center market. According to Arizton, the Egyptian data center market was valued at $182 million in 2023 and is projected to reach $513 million by 2029, representing a growth rate of 18.85% over this period.

“The Egypt data center market is on a notable upward trajectory, fueled by factors such as heightened digitalization, a surge in cloud service uptake, and the growing need for colocation services. A thriving IT landscape marks this industry, government efforts to bolster digital infrastructure, and Egypt's advantageous geographical position, making it an ideal hub for data center activities,” Arizton wrote in a market overview earlier this year. 

Investments in data centers are expected to help address Egypt's data center capacity gap. Arizton forecasts that over 109 MW of capacity will be added across Egypt between 2024 and 2029. It’s worth noting that Africa as a whole requires 1,000 MW and 700 new facilities, according to Oxford Business Group’s “Data Centres in Africa Focus Report” published in April 2024.

Isaac K. Kassouwi