Egypt Data Center Market - Investment Analysis & Growth Opportunities 2024-2029

MARKET OVERVIEW

The Egypt data center market will witness investments of USD 513 million by 2029, growing at a CAGR of 18.85% during the forecast period. The data center sector in Egypt is poised to draw investments, particularly within Special Economic Zones (SEZs). The government of Egypt actively supports SEZs as a strategy to boost economic growth and create favorable conditions for businesses, including those in the data center industry. Some of these zones include Port Said, Alexandria, Ismailia, Damietta, Media Production City, Nasr City, Shebin El Kom, and the Suez Canal Economic Zone (SCZone). These zones offer various incentives, such as tax breaks, simplified customs procedures, and streamlined regulations, to encourage business activities and facilitate international trade.

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.

Initiatives, such as Egypt Vision 2030 and Digital Egypt, are setting the stage for innovations and digital progress. These initiatives aim to create an atmosphere conducive to nurturing technology startups and enticing foreign investments. The Ministry of Communications and Information Technology (MCIT) is committed to the vision of building Digital Egypt, which is in harmony with Egypt Vision 2030 and the country's digital transformation strategy. Furthermore, in February 2023, Elsewedy Data Centers signed a Memorandum of Understanding (MoU) with Emirati Gulf Data Hub to collaborate on building Egypt's largest data center complex in Africa.

KEY HIGHLIGHTS

• The Egypt data center market is witnessing growth due to various factors, such as significant digitalization, strong fiber connectivity, and the growing adoption of technologies such as AI.​
• The market has started witnessing 5G network service deployments, which will drive the demand for edge data centers in the coming years. In February 2024, Telecom Egypt and Ericsson announced the successful launch of 5G networks across different key locations in the new administrative capital of Egypt.
• The Egypt data center market is growing in fiber connectivity, with around 17 existing submarine cables connecting the Middle East, Africa, and Europe. Around five submarine cables are expected to go live in the country in the coming years.
• Egypt is pursuing a sustainable energy future by implementing its 2035 Integrated Sustainable Energy Strategy. The objective is to increase the adoption of renewable energy sources to achieve a significant 42% of electricity generation from renewables by 2035.
• The growing investment opportunities in the Egypt data center market have attracted several new entrants, such as Africa Data Centres, Gulf Data Hub, and Khazna Data Centers; this is expected to increase competitiveness in the market in the coming years.
• Technological advancements, with AI, big data, and IoT adoption, will boost the demand for data centers and advanced infrastructure in the coming years. For instance, in December 2023, the Minister of Communications and Information Technology and the National Council for Artificial Intelligence decided to develop the second phase of the National Strategy for Artificial Intelligence.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size is available in terms of investment, area, power capacity, and Egypt's colocation market revenue.
• An assessment of the data center investment in Egypt by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across cities in the country.
• A detailed study of the existing Egypt data center market landscape, an in-depth market analysis, and insightful predictions about market size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Egypt
  • Facilities Covered (Existing): 12
  • Facilities Identified (Upcoming): 08
  • Coverage: 5+ Cities
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in Egypt
  • Colocation Market Revenue & Forecast (2023-2029)
  • Retail Colocation Pricing
• The Egypt data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
• A transparent research methodology and the analysis of the demand and supply aspects of the industry.

VENDOR LANDSCAPE

• The Egypt data center market is dominated by several global IT infrastructure providers, such as Arista Networks, Broadcom, Dell Technologies, Cisco Systems, Hewlett Packard Enterprise (HPE), Juniper Networks, IBM, and others. This has led to an increase in the availability of advanced IT infrastructure in the market.
• The market has the presence of local and global construction contractors who have catered to several data center projects over the years. For instance, in May 2023, REDCON Construction collaborated with GPX Global Systems to expand the Cairo 2 data center, owned by GPX. The company has provided services for developing a Tier IV data center project for a Google subsidiary.
• The support infrastructure segment in the Egypt data center market is dominated by global vendors such as ABB, Caterpillar, Cummins, Delta Electronics, Eaton, and others. This has led to increased competitiveness in the market and is expected to reduce infrastructure prices in the coming years.
• Some key investors in the Egypt data center market 2023 are Telecom Egypt, Raya Data Centers, Etisalat, GPX Global Systems, Khazna Data Centers, Africa Data Centres, Gulf Data Centers, and others.
• Data center operators in Egypt are investing in expanding their presence in the Egypt data center market. In May 2023, GPX Global Systems announced its plans to expand one of its facilities in Cairo, Egypt. The company invested around USD 87.4 million to expand its Cairo 2 data center, adding an additional power capacity of around 12 MW to the site.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
  • Cairo
  • Other Cities
• List of Upcoming Facilities in the Region (Area and Power Capacity)
  • Cairo
  • Other Cities

REPORT COVERAGE:

This report analyses the market share of Egypt's data center. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

• IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
• Electrical Infrastructure
  • UPS Systems
  • Generators
  • Transfer Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Rack Cabinets
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers & Dry Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression Systems
  • Physical Security
  • Data Center Infrastructure Management (DCIM)
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV

VENDOR LANDSCAPE

• IT Infrastructure Providers: Arista Networks, Broadcom, Cisco Systems, Dell Technologies, Hewlett Packard Enterprise, IBM, and Juniper Networks.
• Data Center Construction Contractors & Sub-Contractors: Orascom Construction, REDCON Construction, Raya Network Services, Shaker Group, Sterling & Wilson, Summit Technology Solutions, and United For Technology Solutions.
• Support Infrastructure Providers: ABB, Caterpillar, Cummins, Delta Electronics, Eaton, Johnson Controls, Legrand, Rittal, Rolls-Royce, Schneider Electric, STULZ, and Vertiv.
• Data Center Investors: Etisalat, GPX Global Systems, Raya Data Center, Telecom Egypt. 
• New Entrants: Africa Data Centres, Gulf Data Hub, and Khazna Data Centers.