The UAE Ministry of Investment and the Ministry of Communications and Information Technology of Egypt have entered into a memorandum of understanding (MoU) to foster collaboration and investment in the digital infrastructure sector, specifically focusing on Egypt’s data center projects.
The MoU was signed by Mohamed Hassan Al Suwaidi, UAE minister of Investment, and Dr. Amr Talaat, Egypt’s minister of Communications and Information Technology.
As per the agreement, the planned data centers have the potential to reach a combined operational capacity of 1,000 Megawatts (MW).
The increasing demand for data centers in Egypt can be attributed to the country’s ‘Digital Egypt’ strategy, which aims to promote the digital economy and facilitate digitization across key industries in the region.
Additionally, the digital strategy seeks to enhance access to government services, expand digital infrastructure for widespread internet connectivity, and foster entrepreneurship and digital innovation.
Read more: Khazna Data Centers invests $250 mn in cloud system expansion in Egypt
The data center market in Egypt is expected to experience significant growth, with its value projected to reach $1,138.67 million by 2030, compared to approximately $490.62 million in 2022. This represents an annual growth rate of 12.8% between 2023 and 2030.
Egypt benefits from its advantageous coastal location and access to marine cables, which provide robust connectivity to global data through its 15 operational data centers.
The agreement aims to facilitate effective and productive cooperation by strengthening ties between governmental and private institutions in the UAE and Egypt. It includes provisions for providing incentives, facilities, and support to promote relevant initiatives, fostering collaborative efforts, and facilitating the exchange of experiences and knowledge.
UAE data center market
Similarly, a recent study revealed that the data sector in the UAE has emerged as a vital catalyst for fostering growth across diverse economic domains. In addition, this aligns with the government’s implementation of a range of policies, strategies, and regulations governing data usage in various fields.
According to a report by the Interregional, projections suggest that the UAE’s data center market is poised to reach approximately AED6.3 billion by 2027. Furthermore, it is anticipated that the market’s value will increase to approximately AED9 billion by 2028.
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