The Egypt data center market is poised for substantial growth, with projections indicating a value of $513 million by 2029, a significant increase from $182 million in 2023, with a robust CAGR of 18.85% anticipated between 2023 and 2029.
This comprehensive report delves into the intricate dynamics of Egypt’s data center market, meticulously examining both existing infrastructure and upcoming developments. It provides detailed insights into investments across IT, electrical, and mechanical infrastructure, as well as general construction, and tier standards, offering a comprehensive understanding of market sizing and investment estimations across various segments.
Major global IT infrastructure players such as Arista Networks, Broadcom, Dell Technologies, Cisco Systems, Hewlett Packard Enterprise (HPE), Juniper Networks, and IBM dominate the Egypt data center landscape, contributing to the availability of cutting-edge IT infrastructure solutions.
The market also features a blend of local and global construction contractors who have been instrumental in the execution of several data center projects. Notably, collaborations like the one between REDCON Construction and GPX Global Systems for the expansion of Cairo 2 data center exemplify the market’s momentum.
Key Highlights:
The Egypt data center market is experiencing an upswing driven by factors like substantial digitalization, robust fiber connectivity, and the increasing adoption of transformative technologies such as AI. The emergence of 5G network services is expected to fuel demand for edge data centers in the foreseeable future. A notable milestone was reached in February 2024 when Telecom Egypt and Ericsson successfully launched 5G networks across strategic locations in Egypt’s new administrative capital.
Fiber connectivity is a burgeoning aspect of the market, with numerous submarine cables linking the Middle East, Africa, and Europe. The future holds the promise of further expansion, with plans for additional submarine cables in Egypt. Moreover, the country is steadfast in its pursuit of sustainable energy solutions, with the implementation of the 2035 Integrated Sustainable Energy Strategy aimed at achieving a substantial 42% of electricity generation from renewable sources by 2035.
The burgeoning investment opportunities in Egypt’s data center market have attracted new players such as Africa Data Centres, Gulf Data Hub, and Khazna Data Centers, enriching the market’s competitive landscape.
Anticipated technological advancements, including AI, big data, and IoT, are expected to propel demand for data centers and advanced infrastructure. For instance, the decision to develop the second phase of the National Strategy for Artificial Intelligence underscores Egypt’s commitment to technological innovation.
Key Features of the Report:
Detailed insights into market size, investment, area, and power capacity, alongside revenue projections for Egypt’s colocation market. An exhaustive assessment of data center investments by colocation, hyperscale, and enterprise operators, with a focus on area and power capacity across various cities in Egypt. Comprehensive analysis of the existing data center market landscape in Egypt, coupled with insightful forecasts for market size over the forecast period.
Key Questions Addressed:
What is the magnitude of the Egypt data center market? How many existing and forthcoming data center facilities are operational in Egypt? What is the projected increase in power capacity across Egypt between 2024 and 2029? What is the growth trajectory of the Egypt data center market, and what are the driving factors? Who are the primary investors in Egypt’s data center market?
Vendor Landscape:
IT Infrastructure Providers: Arista Networks, Broadcom, Cisco Systems, Dell Technologies, Hewlett Packard Enterprise, IBM, Juniper Networks. Data Center Construction Contractors & Sub-Contractors: Orascom Construction, REDCON Construction, Raya Network Services, Shaker Group, Sterling & Wilson, Summit Technology Solutions, United For Technology Solutions. Support Infrastructure Providers: ABB, Caterpillar, Cummins, Delta Electronics, Eaton, Johnson Controls, Legrand, Rittal, Rolls-Royce, Schneider Electric, STULZ, Vertiv. Data Center Investors: Etisalat, GPX Global Systems, Raya Data Center, Telecom Egypt. New Entrants: Africa Data Centres, Gulf Data Hub, Khazna Data Centers.
Existing vs. Upcoming Data Centers:
Details on existing facilities in terms of area and power capacity across Cairo and other cities, along with a list of upcoming facilities in similar metrics.
Report Coverage:
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.
This comprehensive report serves as an invaluable resource for stakeholders seeking to gain in-depth insights into the evolving landscape of Egypt’s data center market and make informed decisions.
