Cairo

Source: Al-Wafd newspaper

Dr. Ali Mohamed Al-Khouri

Cooperation between Egypt and the United Arab Emirates in the field of digital economy and infrastructure, especially based on the establishment and development of data centers, represents an important step towards enhancing the digital landscape in both countries.

In December 2023, the UAE Ministry of Investment and the Egyptian Ministry of Communications and Information Technology signed a memorandum of understanding to enhance cooperation in digital infrastructure, specifically data center projects in Egypt. This agreement is expected to lead to the development of up to 1 gigawatt of data center capacity in Egypt. This cooperation is in line with the “Digital Egypt” strategy, which is part of Egypt’s Vision 2030, which aims to build a solid digital economy and facilitate digital transformation across key industries.

The UAE’s Khazna Data Center, one of the largest networks of large-scale data centers in the Middle East and North Africa, also announced plans to enter the Egyptian market in partnership with the Binya Group. This includes establishing the first large-scale data center in Egypt in the Maadi Technology District in Cairo, with an investment of $ 250 million dollars. This facility, with an expected capacity of 25 MW of IT loads, is expected to serve as a major driver for business expansion in Egypt, especially for multinational companies looking to grow in the Middle East and African markets.

The growth of the data center market in Egypt is significant, with its value expected to reach about $1.2 billion by 2030, up from $491 million in 2022. This rapid development is supported by Egypt’s strategic coastal location, access to submarine cables, and its operational data. The current 15, which collectively provide a powerful global data connection.

This Egyptian-Emirati partnership not only confirms the importance of digital infrastructure in economic growth in the region, but also reflects the thriving trade relations between the two countries. It is worth noting that the total volume of trade between Egypt and the UAE in the period from July 2022 to March 2023 amounted to approximately $6.645 billion, which indicates the strength of the economic relations between them.

This cooperation in the digital field, especially in data centers, is scheduled to play a pivotal role in shaping the digital economies in both Egypt and the United Arab Emirates, representing an important milestone in the journey towards comprehensive digital transformation in the region.