The UAE Ministry of Investment and the Egyptian Ministry of Communications and Information Technology have signed a memorandum of understanding aimed at establishing a comprehensive framework for investment cooperation in digital infrastructure, particularly in data center projects in Egypt.
The memorandum of understanding was signed by Mohamed Al-Suweidi, the UAE Minister of Investment, and Amr Talaat, the Egyptian Minister of Communications and Information Technology.
Under this agreement, the data centers developed will have a total operational capacity of up to 1,000 megawatts.
The growing demand for data centers in Egypt is attributed to the “Digital Egypt” strategy, a comprehensive plan to enhance the digital economy by promoting digitization across key regional industries.
The digital strategy also aims to streamline access to government services in Egypt, expand digital infrastructure to ensure widespread internet access and promote digital entrepreneurship and innovation.
The data center market in Egypt is expected to witness significant growth, with forecasts indicating its value to reach $1.14 billion by 2030, compared to approximately $490.62 million in 2022.
This represents a total annual growth rate of 12.8% between 2023 and 2030. Egypt, with its 15 operational data centers, benefits from its strategic location in coastal regions, especially its access to undersea cables that provide robust global data connectivity.
The memorandum emphasizes enhancing effective cooperation by strengthening relations between governmental and private institutions in the UAE and Egypt.
It also offers incentives and facilitations to support related initiatives, contributing to collaborative efforts, knowledge exchange, and experience sharing.
Mohamed Al-Suweidi, the UAE Minister of Investment, stated on this occasion, “The memorandum of understanding reflects the deep-rooted bilateral relations between the UAE and Egypt, especially in the economic cooperation field and its sustainable impact. This memorandum supports our joint efforts to drive innovation, and growth, and contribute to the development of the digital economy in the Arab Republic of Egypt, as well as to develop its digital infrastructure in readiness for the future.”
Amr Talaat, the Egyptian Minister of Communications and Information Technology, pointed out that cooperation between the two countries under this framework includes discussions on enhancing investment partnerships through joint projects.
It also aims to encourage and facilitate investments in data center projects in Egypt, with an initial phase of 100 megawatts and a targeted future capacity of up to 1,000 megawatts.
