Egypt Data Center Industry Outlook from 2023 to 2033
Demand for data centers in Egypt recorded a y-o-y growth of 8.2% in 2022. The total revenue is expected to reach US$ 297.8 million by 2023. Over the assessment period, sales of data center solutions across Egypt are slated to soar at 9.6% CAGR, totaling US$ 745.6 million by 2033. The ability of data centers to store and manage large amounts of data is expected to drive demand.
Data centers are set to serve as a centralized hub where organizations can store, process, manage, and distribute data, applications, and services. They are anticipated to be essential for enabling digital services, cloud computing, and other technology-driven activities that require reliable and efficient computing resources. High adoption of these novel technologies will positively impact sales of data center products.
Attributes
Key Insights
Base Value (2022)
US$ 276.2 million
Estimated Egypt Data Center Business Revenue (2023)
US$ 297.8 million
Projected Egypt Data Center Business Revenue (2033)
US$ 745.6 million
Value-based CAGR (2023 to 2033)
9.6%
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Other Drivers Propelling the Demand for Data Centers in Egypt
Digital transformation initiatives in Egypt driving the development of data centers
Growth in the information and communication technology sector in Egypt driving demand for data centers
Rising data storage and processing needs uplifting demand for data centers in Egypt
Increasing popularity of cloud computing in Egypt will likely boost sales of data center solutions
E-commerce boom and mobile data explosion to trigger data center expansion
Wide availability of data center services in Egypt is expected to improve revenue
Challenges for Companies in the Egypt Data Center Business
High cost of implementation to restrain growth
Security concerns to negatively impact sales growth
Limited fiber connectivity to hamper business expansion
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Opportunities in the Egypt Data Center Business
Need for carbon-neutral data centers to act as a growth opportunity for data centers in Egypt
Advancements in data centers powered by Edge and 5G to improve the performance of data centers over the forecast period
Renewable energy integration to create lucrative opportunities for manufacturers of data center products and drive demand for data center power management solutions
Growing demand for data center services will likely boost revenue
Penetration of advanced technologies is set to expand data center infrastructure in Egypt
Surging popularity of green data centers in Egypt will bode well for the target business
Rising emphasis on data center power management in Egypt will positively impact sales growth
Latest Trends in the Egypt Data Center Business
Growth in Colocation and Managed Facilities: Egypt is witnessing an increased shift from on-premises data centers to colocation and managed facilities by SMEs and larger organizations, thereby driving the demand for data centers.
Establishment of Industrial Parks: The establishment of industrial parks, which provide a favorable environment for businesses, has attracted data center operators and investors to Egypt.
Increased Submarine Cable Connectivity: The business is aided by increased submarine cable connectivity, which has improved data transmission and communication.
Growth of Edge Computing: Edge data centers are gaining popularity to support low-latency applications such as IoT and AI, enabling faster data processing and reducing network latency.
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2018 to 2022 Egypt Data Center Demand Outlook Compared to 2023 to 2033 Forecast
From 2018 to 2022, the data center business in Egypt experienced a CAGR of 7.3%. It reached a valuation of US$ 235.6 million in 2022. From 2023 to 2023, data center demand in Egypt is expected to rise at a 7.6% CAGR.
Historical CAGR (2018 to 2022)
7.3%
Forecast CAGR (2023 to 2033)
7.6%
Egypt's population is rapidly urbanizing and embracing digitalization, leading to an explosion in data generation. With more businesses and individuals using the internet and digital services, there's a pressing need for secure and reliable data storage and processing facilities, which data centers provide.
Egypt's strategic geographical location at the crossroads of Africa, the Middle East, and Europe also makes it an ideal place for data centers that serve as hubs for data traffic between these regions. This positions Egypt as a gateway for international data exchange and an attractive destination for businesses looking to establish a presence in the country.
The government of Egypt has expressed interest in promoting the IT and data center sector by offering incentives, infrastructure investments, and regulatory reforms. This will further fuel the demand for data centers.
Egypt’s rapidly expanding digital economy and the growing adoption of cloud services are generating substantial data storage and processing demands. As more organizations transition to digital platforms and embrace e-commerce, big data analytics, and other data-intensive applications, the need for robust data center infrastructure becomes increasingly evident.
Egypt's strong emphasis on renewable energy sources presents an opportunity for data centers to reduce their environmental footprint and operational costs. By integrating sustainable energy solutions, such as solar and wind power, data center operators can lower their operational expenses and appeal to environmentally conscious clients. This aligns with the global trend of green data center operations and positions Egypt as an attractive location for sustainable data center investments.
Semi-annual Update
Particular
Value CAGR
H1 (2022 to 2032)
7.1%
H2 (2022 to 2032)
7.5%
H1 (2023 to 2033)
7.9%
H2 (2023 to 2033)
8.2%
Comparative View of Adjacent Egypt Data Center Businesses
The Egypt data center business is set to be impacted by the peer or tangential businesses in the technology division. These include businesses such as cloud computing and mini data centers. On analysis of these related businesses, the report has detected profound insights that will be helpful for developing unique differentiating strategies to pursue growth and opportunity.
Egypt Data Center Demand Outlook:
Attribute
Egypt Data Center Demand Forecast
CAGR (2023 to 2033)
9.6%
Estimated Value (2023)
US$ 297.8 million
Growth Factor
Rapid penetration of digitalization is expected to drive demand for data centers in Egypt.
Key Trend
E-commerce boom and growth of edge computing are key trends in the Egypt data center business.
Cloud Computing Industry Analysis:
Attribute
Cloud Computing Industry Analysis
CAGR (2023 to 2033)
13.5%
Estimated Value (2023)
US$ 579.58 billion
Growth Factor
Growing adoption of cloud computing across verticals such as BFSI, telecommunication, and retail is fostering growth.
Key Trend
Integration of modern digital technologies such as AI and big data analytics is expected to drive demand for cloud computing.
Mini Data Center Sales Outlook:
Attribute
Mini Data Center Sales Forecast
CAGR (2023 to 2033)
12.0%
Estimated Value (2023)
US$ 4848.4 million
Growth Factor
Rising demand for edge computing is expected to drive growth.
Key Trend
Growing popularity of AI and ML and increasing data generation are anticipated to augment sales of mini data centers.
Category-wise Insights
The below section predicts the hardware segment to hold a prominent share through 2033. It is set to thrive at an 8.6% CAGR during the forecast period.
Hyperscale and edge data center segments are expected to witness higher CAGRs of 12.3% and 10.3%, respectively, through 2033. These segments will collectively account for a dominant value share throughout the forecast period.
Based on the end-use industry, the carrier/telcos segment is projected to generate significant revenue. It will likely progress at a 10.6% CAGR through 2033.
Tier-3 data centers are expected to witness immense popularity across Egypt during the assessment period. The target category is anticipated to rise at a 10.3% CAGR between 2023 and 2033.
Dominant Role of Hardware in Egypt's Data Centers Fueling Demand
Growth Outlook by Product
Product
Value CAGR
Hardware
8.6%
Data Center Infrastructure Management (DCIM) Software
10.9%
Services
9.9%
As per the latest Egypt data center industry analysis, the hardware segment is estimated to account for a share of 50.7% in 2023. Sales of hardware solutions in Egypt are slated to rise at 8.6% CAGR, totaling US$ 346.3 million by 2033.
With the rapid growth of data and the increasing complexity of data center operations, there is a constant need for upgrading and expanding hardware resources to meet the demands of businesses. This drives continuous investment in hardware, making it the dominant product segment.
Businesses in Egypt are increasingly embracing digitalization, cloud computing, and data-intensive applications. As a result, there is a surging demand for processing and storage capabilities. The hardware segment's prominence is also attributed to the pivotal role of data centers in the digital economy.
Data centers serve as the backbone of diverse sectors, such as finance, healthcare, e-commerce, and telecommunications. To maintain their competitive edge, businesses in these sectors are reliant on state-of-the-art hardware infrastructure within data centers.
Hyperscale and Edge Data Centers to Witness Rising Popularity
Growth Outlook by Data Center Type
Data Center Type
Value CAGR
Enterprise Data Centers
7.5%
Edge Data Centers
10.3%
Colocation Data Centers
9.3%
Hyperscale Data Centers
12.3%
Cloud Data Centers
9.9%
Managed Data Centers
8.5%
The hyperscale and edge data centers segment is poised for rapid growth in Egypt. This is due to the country's expanding digital landscape and evolving data processing needs.
The hyperscale data centers segment is set to rise at 12.3% CAGR through 2033. On the other hand, the edge data centers segment is poised to exhibit a CAGR of 10.3%.
Hyperscale data centers are designed to handle large-scale workloads efficiently, making them an attractive choice for organizations experiencing substantial data growth. On the other hand, edge data centers are gaining prominence as businesses seek low-latency data processing and closer proximity to end-users.
Egypt's digital transformation spans a wide range of sectors, and each sector is experiencing an increased reliance on data-intensive applications, cloud computing, and advanced technologies. This diverse adoption is driving the demand for data center solutions that effectively manage the surge in data volumes and deliver low-latency services.
Edge data centers also bring data processing closer to end-users, reducing latency for real-time applications such as IoT and AI. With this comprehensive approach to addressing Egypt's digitalization, the combined growth of hyperscale and edge data centers is set to boost revenue.
Telecommunication companies, with their extensive network infrastructure and experience in managing large-scale data traffic, are well-positioned to offer data center services. Their existing network assets enable them to provide robust and low-latency connectivity to businesses and organizations, a crucial factor in data center selection.
Carriers and telcos have a deep understanding of data transmission, which is invaluable in the efficient operation of data centers. This makes them a preferred choice among enterprises in Egypt.
Carrier and telco companies in Egypt often deliver comprehensive services beyond data center facilities. They provide a suite of services that encompass network connectivity, cloud solutions, and data center services under one roof. This vertical integration allows businesses to streamline their IT infrastructure and network requirements, reducing complexity and enhancing efficiency.
Clients can benefit from a one-stop shop for their digital needs, which is a significant advantage in managing their IT operations. Carrier and telco providers offer a complete package, making them the preferred choice for organizations in Egypt looking for comprehensive, reliable, and well-connected data center solutions.
As per the latest report, the carriers/telcos segment is set to hold a dominant value share of 30.4% by 2033. Over the forecast period, the target segment is anticipated to witness a CAGR of 10.6%.
Tier-3 Data Centers Ensure Reliability and Uptime for Businesses
Growth Outlook by Data Center Tier
Data Center Tier
Value CAGR
Tier-1 Data Center
7.5%
Tier-2 Data Center
9.5%
Tier-3 Data Center
10.3%
Tier-4 Data Center
8.9%
As per the latest report, the tier-3 data centers segment is projected to experience a robust CAGR of 10.3% during the forecast period. Tier-3 data centers are designed to provide a high level of redundancy and availability, making them a preferred choice for businesses seeking uninterrupted operations.
In a rapidly digitizing economy, where downtime results in substantial losses, organizations prioritize data centers that guarantee minimal disruptions. The tier-3 classification offers precisely that, with multiple levels of redundancy in power, cooling, and networking infrastructure, ensuring businesses rely on consistent service availability.
Tier-3 data centers are well-suited to meet the high demand by providing the requisite redundancy, ensuring business continuity, and minimizing the risk of costly downtime. In an era where data has become a critical asset, the emphasis on reliability and uptime is driving the growth of tier-3 data centers.
Competitive Landscape
Key players are focusing on providing tailored data center solutions to meet the specific needs of their clients. This approach allows businesses to have data infrastructure that aligns perfectly with their requirements, ensuring efficiency and cost-effectiveness.
Vendors differentiate themselves through superior connectivity and network capabilities. They establish extensive peering agreements and connections with multiple internet service providers (ISPs) to offer high-speed, low-latency connectivity, making them attractive for businesses seeking robust and fast data center solutions.
Key Strategies Adopted by Renewed Players
Product Innovation
Data center companies are investing in research and development to create cutting-edge solutions that offer improved efficiency, security, and scalability. They constantly evolve their offerings to meet the evolving needs of businesses in Egypt, incorporating technologies such as AI, cloud integration, and sustainable energy solutions.
Strategic Partnerships and Collaborations
Companies form strategic partnerships and collaborations with other technology companies, cloud service providers, and local businesses. These alliances allow them to leverage each other's strengths, access new fields, and provide comprehensive solutions to customers.
Expansion into Diverse Fields
Vendors often expand into emerging fields in Egypt. This diversification allows them to tap into new customer bases and support businesses in emerging economies with their data center services.
Mergers and Acquisitions
Companies are implementing mergers and acquisitions to expand their offerings, acquire new technologies, and improve customer bases. Several companies are acquiring smaller data center players to expand their presence and consolidate their positions.
Key Developments
In February 2023, Elsewedy Data Centers and Gulf Data Hub formed a joint venture to revamp Africa's most prominent data center in Egypt. The joint venture aims to provide a global carrier-neutral data center in Egypt and the Middle East.
In November 2022, Telecom Egypt signed an agreement with SAP partner Cloud4C to adopt TE's regional data hub (RDH) as a certified international data center. The agreement aims to provide Cloud4C with a secure and reliable cloud infrastructure for businesses in Egypt and the Middle East.
In May 2022, Orange announced the completion of the first phase of the NAC data center in Egypt. It signed a contract to establish the leading data center in Africa within the NAC. The NAC data center is expected to provide a range of services, including cloud, colocation, and managed services.
Scope of the Report
Attribute
Details
Estimated Value (2023)
US$ 745.6 million
Projected Sales (2033)
US$ 636.0 million
Expected CAGR (2023 to 2033)
9.6%
Forecast Period
2023 to 2033
Historical Data Available for
2018 to 2022
Industry Analysis
Value (US$ million)
Key Countries Covered
Egypt
Key Segments Covered
Product
Data Center Type
Data Center Tier
End-use Industry
Key Companies Profiled
Schneider Electric
Emerson
Microsoft
Google
Orange Egypt
Huawei Egypt
ABB
Khazna Data Center
Report Coverage
Business Forecast, Company Share Analysis, Competition Intelligence, Key Dynamics and Challenges, and Strategic Growth Initiatives
Egypt Data Center Business Outlook by Category
By Product:
Hardware
Power Systems
Power Distribution Units (PDUs)
Power Generators
UPS Systems
Modular UPS
Conventional UPS
Cooling Systems
Liquid Cooling Systems
Air Cooling Systems
Data Center Racks
Data Center Servers
Data Center Networking Devices
Others (Electrical Systems, General Building Infra, Other Hardware)
Data Center Infrastructure Management (DCIM) Software
Services
Consulting, Planning, and Design Services
Security & Disaster Recovery Services
Data Center Mitigation Services
Integration & Deployment Services
Modernization and Optimization Services
Support Services
By Data Center Type:
Enterprise Data Centers
Edge Data Centers
Colocation Data Centers
Hyperscale Data Centers
Cloud Data Centers
Managed Data Centers
By Data Center Tier:
Tier -1 Data Center
Tier -2 Data Center
Tier -3 Data Center
Tier -4 Data Center
By End-use Industry:
Carrier/Telcos
Colocation Service Providers
Communication Service Providers
Finance
Government
Manufacturers
Others
Frequently Asked Questions
How big is the data center business in Egypt?
Data center business in Egypt is set to be valued at US$ 297.8 million in 2023.
How is the demand for data centers increasing in Egypt?
Data center demand in Egypt is set to rise at a 9.6% CAGR through 2033.
What is the expected valuation for Egypt data center business in 2033?
Total valuation in Egypt is set to reach US$ 745.6 million by 2033.
Which is the leading end-use industry for data centers in Egypt?
With a value share of 27.8% in 2033, the carriers/telcos segment will lead Egypt.
Which data center type is estimated to show promising growth?
The tier-3 data centers segment is set to thrive at a high CAGR of 10.3%.
Which product segment will generate significant revenue?
DCIM software segment is set to generate lucrative revenue, thriving at 10.9% CAGR.
What are the top 5 data center companies in Egypt?
Schneider Electric, Orange Egypt, Microsoft, Google, and Eaton Corporation are top vendors in Egypt.
Table of Content
1. Executive Summary
1.1. Egypt Industry Outlook
1.2. Demand Side Trends
1.3. Supply Side Trends
1.4. Analysis and Recommendations
2. Business Overview
2.1. Business Coverage / Taxonomy
2.2. Business Definition / Scope / Limitations
3. Key Trends – Data Center
3.1. Key Trends Impacting Growth
3.1.1. Public Cloud Adoption
3.1.2. Over-The-Top (OTT) Services
3.1.3. E-commerce Expansion
3.1.4. Digitalization
3.1.5. Data Sovereignty and Security
3.1.6. Internet of Things (IoT) Expansion
3.1.7. Mobile Data Growth
3.2. Key Use-cases of Technologies across data centers
3.2.1. Impact of AI technologies for data center automation
3.2.2. Smart City project developments and impact on data center infrastructure
3.2.3. Implementation of IoT technology in Data Centers
3.2.4. Data center for military intelligence
3.2.5. Other use-cases
3.3. Technology Innovation and Development Trends
4. Pricing Analysis – Data Center
4.1. Total Cost of Ownership, by Electrical Hardware
4.2. Average Pricing Analysis, By Data Center Hardware
4.2.1. Average Pricing for Electrical Systems
4.2.2. Average Pricing for IT hardware
4.2.3. Average Pricing for Power Systems
4.3. Data Center Software Pricing Models
4.3.1. Subscription-based
4.3.2. Perpetual Licenses
5. Major Deals in Data Center Business
5.1. Major Deals in Data Center, 2020 to 2022
6. Business Background
6.1. Macro-Economic Factors
6.2. Forecast Factors - Relevance & Impact
6.3. Value Chain
6.4. COVID-19 Crisis – Impact Assessment
6.4.1. Current Statistics
6.4.2. Short-Mid-Long Term Outlook
6.4.3. Likely Rebound
6.5. Key Dynamics
6.5.1. Drivers
6.5.2. Restraints
6.5.3. Opportunities
7. Demand (Value in US$ million) Analysis 2018 to 2022 and forecast, 2023 to 2033
7.1. Historical Value (US$ million) Analysis, 2018 to 2022
7.2. Current and Future Value (US$ million) Projections, 2023 to 2033
7.2.1. Y-o-Y Growth Trend Analysis
7.2.2. Absolute $ Opportunity Analysis
8. Industry Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product
8.1. Introduction / Key Findings
8.2. Historical Size (US$ million) Analysis By Product, 2018 to 2022
8.3. Current and Future Size (US$ million) Analysis and Forecast By Product, 2023 to 2033
8.3.1. Hardware
8.3.1.1. Power Systems
8.3.1.1.1. Power Distribution Units (PDUs)
8.3.1.1.2. Power Generators
8.3.1.1.3. UPS Systems
8.3.1.1.3.1. Modular UPS
8.3.1.1.3.2. Conventional UPS
8.3.1.1.4. Cooling Systems
8.3.1.1.4.1. Liquid Cooling Systems
8.3.1.1.4.2. Air Cooling Systems
8.3.1.2. Data Center Racks
8.3.1.3. Data Center Servers
8.3.1.4. Data Center Networking Devices
8.3.1.5. Others (Electrical Systems, General Building Infra, Other Hardware)
8.3.2. Data Center Infrastructure Management (DCIM) Software
8.3.3. Services
8.3.3.1. Consulting, Planning, and Design Services
8.3.3.2. Security & Disaster Recovery Services
8.3.3.3. Data Center Migration Services
8.3.3.4. Integration & Deployment Services
8.3.3.5. Modernization and Optimization Services
8.3.3.6. Support Services
8.4. Attractiveness Analysis By Product
9. Industry Analysis 2018 to 2022 and Forecast 2023 to 2033, By Data Center Type
9.1. Introduction / Key Findings
9.2. Historical Size (US$ million) Analysis By Data Center Type, 2018 to 2022
9.3. Current and Future Size (US$ million) Analysis and Forecast By Data Center Type, 2023 to 2033
9.3.1. Enterprise Data Centers
9.3.2. Edge Data Centers
9.3.3. Colocation Data Centers
9.3.4. Hyperscale Data Centers
9.3.5. Cloud Data Centers
9.3.6. Managed Data Centers
9.4. Attractiveness Analysis By Data Center Type
10. Industry Analysis 2018 to 2022 and Forecast 2023 to 2033, By End-use Industry
10.1. Introduction / Key Findings
10.2. Historical Size (US$ million) Analysis By End-use Industry, 2018 to 2022
10.3. Current and Future Size (US$ million) Analysis and Forecast By End-use Industry, 2023 to 2033
10.3.1. Carrier/Telcos
10.3.2. Colocation Service Providers
10.3.3. Communication Service Providers
10.3.4. Finance
10.3.5. Government
10.3.6. Manufacturing
10.3.7. Others
10.4. Attractiveness Analysis By End-use Industry
11. Industry Analysis 2018 to 2022 and Forecast 2023 to 2033, By Data Center Tier
11.1. Introduction / Key Findings
11.2. Historical Size (US$ million) Analysis By Data Center Tier, 2018 to 2022
11.3. Current and Future Size (US$ million) Analysis and Forecast By Data Center Tier, 2023 to 2033
11.3.1. Tier-1 Data Center
11.3.2. Tier-2 Data Center
11.3.3. Tier-3 Data Center
11.3.4. Tier-4 Data Center
11.4. Attractiveness Analysis By Data Center Tier
12. Structure Analysis
12.1. Industry Analysis by Tier of Companies
12.2. Share Analysis of Key Vendors
13. Competition Analysis
13.1. Competition Dashboard
13.2. Matrices for End-use Industry Footprint/Coverage, By Vendors
13.3. Competition Deep Dive
13.3.1. Business Overview
13.3.2. Product Portfolio
13.3.3. Key Partners/Client Footprint
13.3.4. Business Coverage
13.3.5. Go-to Approach & Strategies
13.3.6. Recent Developments (Partnerships, Mergers)
13.4. Major Data Center Hardware Vendors in Egypt:
13.4.1. Schneider Electric
13.4.2. Mitsubishi Electric Power Productions Inc.
13.4.3. AEG Power Solutions
13.4.4. Eaton Corporation
13.4.5. Emerson
13.4.6. Legrand
13.4.7. ABB
13.4.8. General Electric
13.4.9. Delta Electronics, Inc.
13.5. Major Data Center Operators Vendors in Egypt:
13.5.1. Telecom Egypt
13.5.2. ECC Products
13.5.3. EgyptNetwork
13.5.4. CityNet Telecom
13.5.5. Link Datacenter (LDC)
13.5.6. Etisalat Misr
13.5.7. GPX Egypt Systems Inc.
13.5.8. Raya Data Center
13.5.9. Khazna Data Center
13.6. Major Data Center Technology Vendors in Egypt:
13.6.1. Benya Group
13.6.2. Elsewedy Electric
13.6.3. Group 42
13.6.4. Cassava Technologies
13.6.5. Dell Technologies
13.6.6. Orange Egypt
13.6.7. Nokia Egypt
13.6.8. Microsoft Egypt
13.6.9. Huawei Egypt
13.6.10. SAP Egypt LLC
14. Assumptions and Acronyms Used15. Research Methodology
