Egypt Data Centers

Egypt is rapidly positioning itself as a regional nexus for data centers and digital infrastructure, capitalizing on its geographic advantage between Africa, the Middle East, and Europe. The government’s strategy, anchored in the Digital Egypt initiative and Vision 2030, prioritizes fiber optic expansion, energy-efficient technologies, and foreign investment incentives through specialized technology zones and PPPs. As of mid-2025, Egypt is connected to 15 operational submarine cables, with three more under construction, aiming for 18 by year-end. This robust connectivity, coupled with low-latency access to Europe and Asia, makes Egypt a compelling location for global data flows. The market is projected to grow from $278 million in 2024 to $694 million by 2030, driven by demand for hyperscale and colocation facilities. U.S. firms offering cloud infrastructure, edge computing, cybersecurity, and AI-integrated solutions will find strong commercial potential, especially as new entrants like Africa Data Centres, Gulf Data Hub, and Khazna Data Centers intensify competition and diversify offerings.

From a regulatory standpoint, Egypt’s legal framework is evolving to support foreign participation while safeguarding data sovereignty. The Personal Data Protection Law (Law No. 151 of 2020), modeled on the GDPR, requires licenses for data processing, mandates consent-based data collection, and restricts cross-border data transfers. Complementing this, the National Telecommunications Regulatory Authority (NTRA) has introduced a licensing framework for Public Data Center Providers (PDCP), offering 15-year licenses that allow direct submarine cable connectivity without case-by-case approvals. Operators must comply with cybersecurity protocols and undergo tiered accreditation. Cloud service providers serving internal or external users can register under a parallel 15-year scheme. Existing operators were given a nine-month window to regularize their status following the framework’s issuance. U.S. companies are advised to engage local counsel, consult with the U.S. Embassy’s Commercial Service, and explore joint

For more information, please contact Commercial Specialist Dina Bissada.