Cairo: Business Wire, specialized in international economic issues, has lauded the growth of the Data Center Market in Egypt in 2024.
According to State Information Service Egypt, it issued a report titled the “Egypt Data Center Market – Investment Analysis and Growth Opportunities 2025-2030.” The Egypt data center market has started witnessing growth in terms of data center investors, with major players such as Gulf Data Hub, Africa Data Centers, and Khazna Data Centers making their entry into the market.
The Egypt Data Center Market was valued at USD 278 million in 2024 and is projected to reach USD 694 million by 2030, rising at a CAGR of 16.47%. Egypt is one of the growing data center markets in Africa and has witnessed increasing investments over the last two to three years.
The Egypt data center market expansion is driven by factors such as increased use of digitalization, AI and Big Data, growing smart cities development, and government support. Furthermore, the country also has favorable conditions for renewable energy generation and government support for renewable energy.
In September 2024, Egypt was set to attract around USD 40 billion in investment for green hydrogen and renewable energy technology, and the country has signed agreements with seven international developers. In 2024, the Egypt data center market had new entrants such as Africa Data Centers, Gulf Data Hub, and Khazna Data Centers, which will further increase competitiveness in the market in the future and lead to increasing revenue generation for contractors and infrastructure vendors.
The increase in the new entrants will further elevate the challenges for the market share of existing operators in terms of revenue generation. The Egypt data center market has the presence of several local and global data center operators, such as GPX Global Systems, Telecom Egypt, Raya Data Center, Orange Business Services, and others.
In December 2024, the Ministry of Communications and Information Technology of Egypt and the Ministry of Investment (UAE) signed an MoU to collaborate and invest in Egypt’s data center projects. The agreement includes 1 GW of planned data center capacity. Egypt’s Vision 2030 for digitalization and technological advances will bring sustainable development to the country. A new administrative and commercial capital is also being built in Egypt, which will house government ministries and embassies.
With the rising adoption of artificial intelligence in the Egypt data center market, there is anticipation of witnessing developments of AI-ready data centers in the future. In December 2024, Egypt’s Minister of Communications and Information Technology announced that the country will launch the second edition of its National Artificial Intelligence (AI) Strategy in 2025.