Egypt Data Center Market

Egypt Data Center Market Overview:

The Egypt data center market size reached US$ 204.4 Million in ​2023​. Looking forward, IMARC Group expects the market to reach US$ 451.32 Million by ​2032​, exhibiting a growth rate (CAGR) of 8.60% during ​2024-2032​. The market is rapidly expanding due to the increasing focus on digitalization, strong fiber connectivity, the deployment of 5G networks, and advancements in technologies such as AI, big data, and IoT. Both local and global investors are making substantial investments to improve infrastructure, establishing Egypt as a significant data hub in the region.

Egypt Data Center Market Trends:

Increase in Digitalization and Internet Connectivity

The increase in digitalization across various sectors in Egypt is significantly enhancing the demand for advanced data centers. This digital shift is driven by both public and private sectors requires robust data storage and processing capabilities. For instance, the Ministry of Communications and Information Technology has launched “Digital Egypt” to transform the country into digital society in line with the Egypt vision 2030. This initiative mainly focuses on digital transformation, upscaling and innovation aiming to provide public services more efficiently and build a strong digital economy. Digital Egypt encompasses the development of national information infrastructure, E- services, a government intranet and an E- platform for delivering a wide range of public services. Egypt's strategic geographic position makes it a key hub for submarine cable connectivity, linking the Middle East, Africa and Europe. The country currently benefits from extensive submarine cable networks which are important for high-speed Internet and reliable data transfer. Several new submarine cables are expected to further enhance this connectivity boost to the data center market. These cables facilitate improved data flow further supporting Egypt’s ambitions to become a regional digital hub. Furthermore, the governments focus on digital transformation and infrastructure development along with the substantial investment in IT and telecommunications underscores the pivotal role of connectivity in driving the growth of Egypt’s data center market.

Deployment of 5G Networks

The deployment of 5G networks in Egypt is poised to significantly boost the demand for edge data centers. The edge data centers provide localized processing power which is important for 5G applications that require low latency and high-speed data processing. By bringing data processing closer to the end users, edge data centers reduce the distance that data must travel, thereby enhancing speed and reducing latency. This is particularly important for applications such autonomous vehicles, smart cities, and Internet of Things (IoT) devices, which demand real-time data processing and quick response times. In February 2024, Telecom Egypt partnered with Huawei to deploy 5G network infrastructure, aiming to enhance digital offerings and innovate solutions for customers. The collaboration seeks to revolutionize Egypt's digital landscape by providing high internet speeds, wider bandwidth, and seamless communication. This partnership will enable Telecom Egypt to introduce cutting-edge solutions across key sectors, leveraging Huawei's advanced network solutions to maximize the potential of 5G technology and drive digital innovation. The introduction of 5G networks will necessitate a robust infrastructure of edge data centers to handle the increased data flow and processing needs.

Egypt Data Center Market News:

• In April 2024, Egypt inaugurated its first government data and cloud computing center, marking a significant milestone in the country's digital infrastructure development. The government launched this initiative with the aim to highlight the importance of the new state-of-the-art facility, which will facilitate advanced technologies such as artificial intelligence and data analysis applications. This centralized center aims to enhance governmental operations and establish a secure national data and disaster recovery hub.
• In December 2023, Nutanix and Raya Data Centers collaborated to provide cloud computing services and solutions tailored for the public and enterprise sectors in Egypt. With Raya Data Center joining the Nutanix Elevate program, the collaboration aims to accelerate digital transformation in the Egyptian market. This partnership supports the Egyptian government's digital transformation agenda and enhances Raya Data Centers' position as a leading data center services provider, offering cutting-edge services and innovative solutions to local institutions.
   

Egypt Data Center Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for ​2024-2032​. Our report has categorized the market based on component, type, enterprise size, and end user.

Component Insights:

• Solution
• Services
   

The report has provided a detailed breakup and analysis of the market based on the component. This includes solution and services.

Type Insights:

• Colocation
• Hyperscale
• Edge
• Others
   

A detailed breakup and analysis of the market based on the type have also been provided in the report. This includes colocation, hyperscale, edge, and others.

Enterprise Size Insights:

• Large Enterprises
• Small and Medium Enterprises
   

The report has provided a detailed breakup and analysis of the market based on the enterprise size. This includes large enterprises and small and medium enterprises.

End User Insights:

• BFSI
• IT and Telecom
• Government
• Energy and Utilities
• Others
   

A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes BFSI, IT and telecom, government, energy and utilities, and others.

Regional Insights: 

• Greater Cairo
• Alexandria
• Suez Canal
• Delta
• Others
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Greater Cairo, Alexandria, Suez Canal, Delta, and Others.  

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Egypt Data Center Market Report Coverage:

Key Questions Answered in This Report:

• How has the Egypt data center market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Egypt data center market?
• What is the breakup of the Egypt data center market on the basis of component?
• What is the breakup of the Egypt data center market on the basis of type?
• What is the breakup of the Egypt data center market on the basis of enterprise size?
• What is the breakup of the Egypt data center market on the basis of end user?
• What are the various stages in the value chain of the Egypt data center market? 
• What are the key driving factors and challenges in the Egypt data center?
• What is the structure of the Egypt data center market and who are the key players?
• What is the degree of competition in the Egypt data center market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Egypt data center market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Egypt data center market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Egypt data center industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.