While global attention often focuses on the digital infrastructure advancements in the United States and China, Africa, particularly North Africa, is quietly becoming a significant player in the data centre market. According to a report by the International Finance Corporation, Africa’s internet economy could grow to US$180 billion by 2025, representing 5.2 percent of the continent’s GDP, and could reach US$712 billion by 2050, making up 8.5 percent of Africa’s GDP.
This rapid growth signals a rising demand for advanced digital infrastructure, with Egypt emerging as a prime hub for data centres. Strategically located at the crossroads of Africa, Europe, and Asia, Egypt is positioning itself as a key player in the global data centre industry, enhancing connectivity and data exchange worldwide.
As of Q3 2023, Egypt boasts 13 MW of active IT capacity, with a significant pipeline expected to expand the country’s offerings tenfold. Over the past 12 months, Egypt’s data infrastructure supply has increased by 133 MW, highlighting the country’s potential in the data centre market. Key players in Egypt’s data centre market include Telecom Egypt, Raya Data Centers, Etisalat, GPX Global Systems, Khazna Data Centres, Africa Data Centres, and Gulf Data Centres. Notably, Khazna Data Centre partnered with Benya Group last year to build Egypt’s first hyperscale data centre.
In April 2023, Egypt launched its first government data and cloud computing centre, which processes big data and artificial intelligence domestically. This development marks a milestone for Egypt, allowing it to better control data sovereignty, enhance national security, and reduce reliance on foreign entities. The Egyptian government is also promoting the use of renewable energy sources to meet the increasing power demands crucial for data centre construction and operation.
Situated in the Earth’s sun belt, Egypt has abundant solar energy, which the government aims to harness. With a goal to generate 42 percent of its electricity from renewable sources by 2035, Egypt plans to invest US$2.6 billion in renewable energy projects during the 2023-2024 fiscal year, aiming to boost the sector’s share in the national energy mix to 11.8 percent.
Additionally, Egypt is on track to complete one of the world’s largest subsea cable projects, 2Africa, in 2024. This project will connect 33 countries across 44 landings, further solidifying Egypt’s role as a reliable hub connecting Asia, Europe, and Africa.
As Egypt continues to develop its IT infrastructure, the country is positioning itself as a leading data centre hub. The focus on sustainable development will be crucial in balancing the growing demand for data centres with the need for power efficiency, ensuring that Egypt remains a key player in the global digital economy.
