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Egypt data center market to reach $513 million by 2029

The Egypt data center market is expected to reach a value of $513 million by 2029 from $182 million in 2023, growing at a CAGR of 18.85% from 2023-2029, according to Research and Markets.

This report analyses the market share of Egypt’s data center. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments.

The Egypt data center market is dominated by several global IT infrastructure providers, such as Arista Networks, Broadcom, Dell Technologies, Cisco Systems, Hewlett Packard Enterprise (HPE), Juniper Networks, and IBM. This has led to increased availability of advanced IT infrastructure in the market.

The market has the presence of local and global construction contractors who have catered to several data center projects over the years. For instance, in May 2023, REDCON Construction collaborated with GPX Global Systems to expand the Cairo 2 data center, owned by GPX. The company has provided services for developing a Tier IV data center project for a Google subsidiary.

Key highlights
The Egypt data center market is witnessing growth due to various factors, such as significant digitalization, strong fiber connectivity, and the growing adoption of technologies such as AI. The market has started witnessing 5G network service deployments, which will drive the demand for edge data centers in the coming years. In February 2024, Telecom Egypt and Ericsson announced the successful launch of 5G networks across different key locations in Egypt’s new administrative capital.

The Egypt data center market is growing in fiber connectivity, with around 17 existing submarine cables connecting the Middle East, Africa, and Europe. In the coming years, around five submarine cables will live in the country. Egypt is pursuing a sustainable energy future by implementing its 2035 Integrated Sustainable Energy Strategy. The objective is to increase the adoption of renewable energy sources to achieve a significant 42% of electricity generation from renewables by 2035.

The growing investment opportunities in the Egypt data center market have attracted several new entrants, such as Africa Data Centres, Gulf Data Hub, and Khazna Data Centers, which are expected to increase the market’s competitiveness in the coming years.

Technological advancements, with AI, big data, and IoT adoption, will boost the demand for data centers and advanced infrastructure in the coming years. For instance, in December 2023, the Minister of Communications and Information Technology and the National Council for Artificial Intelligence decided to develop the second phase of the National Strategy for Artificial Intelligence. Research and Markets

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