Egypt Data Center Market Size is Expected to Reach USD 484.78 Million By 2033 | CAGR: 8.26%

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 Size, Share, Trends and Forecast by Components, Material Used, End User, and Region, 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

● AI-Ready Infrastructure Expansion: AI adoption is driving the development of specialized, high-performance data centers in Egypt, equipped with advanced GPUs and liquid cooling systems to handle intensive AI workloads, with the market projected to grow from USD 278 million in 2024 to USD 694 million by 2030 at a CAGR of 16.47%, fueled by government initiatives like the second National AI Strategy launched in 2025 to position Egypt as a regional AI hub.

● Predictive Energy and Cooling Optimization: Machine learning algorithms are enabling Egyptian data centers to forecast energy demands and optimize cooling efficiency, reducing operational costs by up to 20-30% amid rising AI compute needs; this is critical as around 180 MW of new power capacity is expected to be added by 2030, supported by Egypt's 2035 Sustainable Energy Strategy aiming for 42% renewable sources to power AI-driven facilities.

● Demand Forecasting for Cloud and Edge AI: Advanced AI analytics are revolutionizing capacity planning in Egypt's data centers by predicting surges from cloud migration and 5G/IoT integrations, boosting colocation revenues and attracting hyperscalers like AWS with new Outposts for data residency; this aligns with Vision 2030 goals to make Egypt a digital exchange hub, enhancing AI services for sectors like e-commerce and smart cities.

● Sustainable AI Resource Management: AI-powered platforms are optimizing renewable energy integration and carbon tracking in Egyptian data centers, promoting green hydrogen projects worth USD 40 billion to meet sustainability mandates; this not only cuts waste in AI training operations but also appeals to eco-focused investors, projecting a 28% CAGR for AI data centers in the Middle East & Africa through 2032.

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Egypt Data Center Market Trends & Drivers:

The surge in artificial intelligence and big data adoption is profoundly transforming Egypt's data center ecosystem, compelling operators to prioritize AI-ready infrastructure capable of handling massive computational loads and real-time analytics. With the launch of the second edition of Egypt's National AI Strategy in 2025, as announced by the Minister of Communications and Information Technology in December 2024, data centers are evolving to incorporate advanced GPU clusters, edge computing nodes, and scalable storage solutions that support machine learning workloads. This alignment with national priorities not only accelerates digital innovation across sectors like finance, healthcare, and e-commerce but also attracts hyperscale investments from global tech giants seeking compliant, high-performance hubs. For instance, facilities are increasingly designed with liquid cooling systems and modular expansions to manage the heat and power demands of AI training, fostering energy-efficient operations that enhance reliability and reduce latency. As AI permeates business operations, its integration into data center architectures is becoming a cornerstone for competitive advantage and long-term scalability in Egypt's burgeoning digital economy.

Egypt's data center market is witnessing explosive growth through the expansion of colocation and managed services, as enterprises and SMEs migrate from traditional on-premises setups to flexible, shared facilities that offer cost savings and expert oversight. This shift is fueled by a projected CAGR of 9.6% through 2033, with revenues expected to reach USD 745.6 million, driven by the need for hybrid cloud environments and disaster recovery capabilities amid rising cyber threats. Colocation providers are capitalizing on this by developing Tier III and IV facilities in key hubs like Cairo and Alexandria, equipped with redundant power and cooling to ensure 99.999% uptime. A notable example is the involvement of local players like Raya Data Center and Telecom Egypt, which are scaling operations to serve multinational clients with customizable rack spaces and managed security services. This trend not only democratizes access to enterprise-grade infrastructure for smaller businesses but also cultivates a collaborative ecosystem where providers and users co-innovate on sustainability and efficiency, positioning Egypt as a regional leader in outsourced data management.

The government's aggressive push for digital transformation and smart city initiatives is unlocking vast opportunities for data center development, supported by robust investments in connectivity and renewable energy to power a projected market volume of USD 545.30 million by 2029. Under the "Digital Egypt" framework, policies are incentivizing green hydrogen and solar integrations, with USD 40 billion in commitments signed in September 2024, enabling data centers to achieve carbon-neutral operations while meeting the demands of IoT-enabled urban projects in New Cairo and beyond. Enhanced submarine cable networks-now at 15 operational links, with three more by late 2025-further bolster low-latency data flows to Europe and Asia, making Egypt a strategic gateway for African and MENA hyperscalers. This governmental backing, coupled with industrial parks offering streamlined permitting, is drawing foreign direct investment and spurring 180 MW of new capacity additions through 2030, ultimately driving inclusive growth by bridging the digital divide and empowering sectors like retail and government with resilient, future-proof infrastructure.

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.

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Recent News and Developments in Egypt Data Center Market

● March 2025: Robust Market Growth Projection Released - A comprehensive investment analysis report valued the Egypt data center market at USD 278 million in 2024, forecasting expansion to USD 694 million by 2030 at a CAGR of 16.47%, fueled by digitalization, AI adoption, and smart city initiatives.

● December 2024: National AI Strategy Update Announced - Egypt's Minister of Communications and Information Technology unveiled plans for the second edition of the National Artificial Intelligence Strategy in 2025, spurring expectations for AI-ready data centers amid rising demand for advanced infrastructure.

● December 2024: Major Investment in Raya Data Center - Africa50 committed USD 15 million to Raya Data Center for operational enhancements and a new Tier III facility, bolstering Egypt's colocation capacity and supporting the shift toward hyperscale solutions.

● November 2024: Huawei Cloud Launches Localized Services - Huawei Cloud introduced Flexus, a tailored cloud suite for Egyptian enterprises in Cairo, enhancing low-latency access and compliance with data sovereignty rules to accelerate cloud adoption in the region.

● September 2024: Green Energy Investments Surge - Egypt secured agreements with seven international developers to attract USD 40 billion in green hydrogen and renewable energy projects, providing sustainable power solutions critical for the data center market's expansion.

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