Egypt Data Center Colocation Market Size, Share & Forecast to 2035

The Egypt Data Center Colocation Market covers the revenue that third-party data center operators in Egypt earn from renting space and power to customers, from interconnection and cross-connects, and from managed services sold with that space, across retail and wholesale colocation. DC Market Insights values the Egypt Data Center Colocation Market at USD 55.19 million in 2025 and forecasts USD 478.32 million by 2035, a CAGR of 24.10%. The 2025 value is built from capacity: about 14.40 MW of leased IT load on average during 2025, 10.94 MW of it retail at USD 305 per kW per month and 3.46 MW wholesale at USD 162 per kW per month, gives USD 46.77 million of space and power revenue, and interconnection and managed services add USD 8.42 million. Wholesale colocation is the fastest-growing segment at 36.70% a year as planned campuses of 20 MW to 300 MW come online and, in the DC Market Insights view, lease halls by the MW, and the Suez Canal Economic Zone and Red Sea is the fastest-growing region at 48.86% a year because the 80 MW Kemet campus is planned in the Integrated Sokhna Industrial Zone.

Executive Summary

The Egypt Data Center Colocation Market size was valued at USD 29.82 million in 2020, reached USD 55.19 million in 2025, and is anticipated to reach USD 478.32 million by 2035, at a CAGR of 24.10% during the forecast period.

Report attribute	Details
Historical Period	2020-2024
Base Year	2025
Forecast Period	2026-2035
Egypt Data Center Colocation Market Size 2025	USD 55.19 Million
Egypt Data Center Colocation Market, CAGR	24.10%
Egypt Data Center Colocation Market Size 2035	USD 478.32 Million

Colocation revenue in Egypt grew 13.10% a year between 2020 and 2025 in the DC Market Insights model. By DC Market Insights estimates, growth slowed to 4.4% in 2023 and 8.4% in 2024 because contracts priced in Egyptian pounds lost value in US dollar terms: on 6 March 2024 the pound fell from a stabilised official rate of around 30.9 to a record low of 50.6 per US dollar, according to AFP. Revenue then rose 21.3% in 2025 in the model, a year in which Telecom Egypt expected to complete the second phase of its Regional Data Hub, with an estimated 4.6 MW of IT load.

In the DC Market Insights view, Egypt’s colocation base is still small. W.Media reported in January 2024 that Egypt operated 13 MW of live IT, alongside a pipeline able to increase that ten-fold. DC Market Insights counts about 20.5 MW of operational third-party colocation capacity at the end of 2025 and forecasts about 173 MW by 2035, as licensed campuses in Greater Cairo and the Suez Canal Economic Zone open in phases. Revenue growth peaks at 32.2% in 2029, when the first large wholesale halls are expected to fill.

Market Scope: What Does Colocation in Egypt Cover?

Colocation in Egypt is worth USD 55.19 million in 2025, by DC Market Insights estimates. The Egypt Data Center Colocation Market is the annual revenue earned by operators that rent data center space, power and connectivity in Egypt to other organizations, valued in current US dollars, with 2025 as the base year and forecasts to 2035.

Included. Retail colocation (racks, cages and private suites sold per rack or per kW), wholesale colocation (powered shells, data halls and build-to-suit capacity leased per MW), power fees billed with the space, interconnection (cross-connects, meet-me rooms, carrier and cloud on-ramps) and managed and other services sold with colocation (remote hands, monitoring, disaster recovery space and managed hosting delivered inside the colocation facility).

Excluded. Construction and equipment spending on data centers, which is covered by the Egypt Data Center Market report, public cloud and software-as-a-service revenue, GPU-as-a-Service compute revenue, enterprise-owned server rooms, subsea cable and landing station fees, and land sales.

How the segments fit together. The colocation type, revenue stream, end-user, enterprise size and tier splits each re-cut the same USD 55.19 million total, and the regional split allocates it across four Egyptian sub-markets.

Market Drivers: What Drives Colocation Demand in Egypt?

In the DC Market Insights view, three factors drive the Egypt Data Center Colocation Market: ten data centre licences issued by Egypt’s regulator in two years, a subsea cable position responsible for about 17% of global internet traffic, and 46% growth in Telecom Egypt’s data revenue in 2025.

Ten NTRA Licences in Two Years and More Than 600 MW of Announced Plans

Egypt’s National Telecommunications Regulatory Authority (NTRA) has issued ten data centre licences over the past two years, the most recent to Hassan Allam for a USD 400 million data centre project expected to host public and private sector clients. Africa Data Centres Egypt (ADC Egypt), formed by Vodafone Business, Elsewedy Electric and Cassava Technologies, is expected to launch with 20 MW within its first three years and scale to 200 MW, and its facilities will provide colocation, hosting, interconnection, cloud enablement, managed infrastructure and disaster-recovery services. Under a 2023 memorandum of understanding, Gulf Data Hub plans three complexes with Elsewedy Data Centers totalling 192 MW and expanding to 300 MW in 5-7 years for USD 2.1 billion, Intro Group’s Kemet Data Centre targets 80 MW, and Khazna Data Centers and Benya Group plan 25 MW in Maadi Technology Park, expandable to 50 MW, which adds up to more than 600 MW of announced plans by DC Market Insights count. DC Market Insights does not assume the whole pipeline is built: the model adds about 152 MW of colocation capacity between 2026 and 2035.

Fourteen Subsea Cable Systems Feed Cairo Interconnection

The Center for Strategic and International Studies (CSIS) counts 14 active cable systems in Egypt, with plans for more than 21 within three years, and estimates that Egypt is responsible for approximately 17% of global internet traffic. SEA-ME-WE 6, a 21,700 km system, completed two Egyptian landings in 2025, at Port Said on the Mediterranean and Ras Ghareb on the Red Sea. According to a 2023 Telecom Egypt release, its Regional Data Hub (RDH) at Smart Village hosted most local internet service providers (ISPs) and more than 22 international customers, including cloud and content providers, and its first phase reached full utilization in one year. Interconnection earns USD 4.91 million in 2025 in the DC Market Insights model, 8.9% of colocation revenue, and grows 25.49% a year.

Telecom Egypt’s Data Revenue Rose 46% in 2025

Telecom Egypt’s total revenue rose 31% to EGP 106.7 billion in 2025, with a 46% rise in data revenue, according to its full-year results. Egypt’s information and communications technology (ICT) sector grew 13.76% in real terms in fiscal year 2024/25, according to the Information and Decision Support Center (IDSC), and an official Ministry of Communications and Information Technology (MCIT) document reviewed by Asharq Bloomberg plans USD 500 million to USD 860 million a year for data centres, cloud and artificial intelligence (AI) infrastructure from fiscal year 2026/27. IT and telecom customers, including ISPs, carriers, cloud and content providers, account for USD 22.63 million of 2025 colocation revenue in the DC Market Insights model, 41.0% of the total.

Market Trends: How Is Colocation in Egypt Changing?

Colocation in Egypt is shifting from retail racks towards wholesale halls: DC Market Insights estimates the wholesale share of leased capacity rises from 24% in 2025 to 55% in 2035.

Wholesale Halls for Cloud and AI Tenants Arrive

In May 2024, W.Media reported that Huawei Cloud had launched its Cairo Region. In September 2026, Vodafone Business announced a separate partnership with Cassava Technologies, alongside ADC Egypt, to offer NVIDIA technologies and GPU-as-a-Service locally to businesses and government entities, and Huawei Cloud’s Cairo Region, the company’s 33rd cloud region, covers 28 African nations. Wholesale colocation earns USD 7.37 million in 2025, 13.4% of revenue, and USD 167.93 million by 2035, 35.1% of revenue, in the DC Market Insights model; in the DC Market Insights view, cloud regions and graphics processing unit (GPU) clusters are leased by the MW rather than by the rack.

Telecom Operators Separate Their Data Center Units

In July 2026 Telecom Egypt decided not to sell a 75% to 80% stake in its Regional Data Hub to Helios Investments, which had valued RDH at USD 230 million with a potential value of up to USD 260 million, and will instead carve its data center services into a wholly owned subsidiary. Data Center Dynamics reports that Telecom Egypt operates 11 data centers across seven Egyptian cities. In the DC Market Insights view, a stand-alone data center company is better placed to sign wholesale leases and raise project finance, and other Egyptian telecom and IT groups may follow the same route.

Capacity Moves Towards the Suez Canal and the Red Sea

Kemet Data Centre will be established in the Integrated Sokhna Industrial Zone, part of the Suez Canal Economic Zone (SCZONE), with first-phase investment of USD 270 million. The Suez Canal Economic Zone and Red Sea region holds 3.4% of 2025 colocation revenue and 21.0% in 2035 in the DC Market Insights model.

Market Challenges: What Holds Colocation in Egypt Back?

A pound that lost more than a third of its value in March 2024, renewable capacity behind target and slow conversion of memoranda into built halls are the main constraints DC Market Insights sees on the Egypt Data Center Colocation Market.

Currency Swings Cut US Dollar Revenue per kW by 18.4%

The DC Market Insights model assumes most domestic colocation contracts are priced in Egyptian pounds, so the fall of the pound from around 30.9 to 50.6 per US dollar in March 2024 reduced the dollar value of existing contracts. In the DC Market Insights model, the average retail price fell from USD 355 per kW per month in 2020 to USD 296 in 2024, a 16.6% decline, and space and power revenue per leased kW fell 18.4%, from about USD 329 to USD 268 per month, over the same period. In the model, international tenants that pay in US dollars soften the effect.

Renewable Capacity Trails the 2030 Goal

Egypt aims to generate 42% of its electricity from renewable sources by 2030, and 7,750 MW of renewable capacity was installed by the end of 2024, according to the US International Trade Administration (ITA). In the DC Market Insights view, cloud and AI tenants weigh access to renewable power when they choose where to lease, so delays in wind and solar projects can delay wholesale colocation demand.

Memoranda Run Far Ahead of Built Capacity

UAE and Egyptian ministries signed a memorandum in December 2023 that could lead to 1 GW of data center capacity, with a first phase of 100 MW. Against that, Egypt operated 13 MW of live IT at the start of 2024, and DC Market Insights counts about 20.5 MW of operational colocation capacity at the end of 2025. The model completes about 52 MW of colocation capacity between 2026 and 2030 because tenants and power, not announcements, set the pace.

Market Opportunities: Where Are the New Revenue Pools in Colocation in Egypt?

Wholesale colocation, growing 36.70% a year, and interconnection in Greater Cairo, worth most of the USD 4.91 million interconnection pool in 2025, are the largest new revenue pools in the Egypt Data Center Colocation Market.

Wholesale Colocation Grows 36.70% a Year

A single new campus can add more capacity than the 13 MW of live IT Egypt operated at the start of 2024: Khazna’s Maadi campus plans 25 MW at first, and ADC Egypt 20 MW in its first three years. Wholesale colocation rises from USD 7.37 million in 2025 to USD 167.93 million by 2035 in the DC Market Insights model, the fastest rate of any segment.

Retail Colocation and Interconnection in Greater Cairo Keep the Lead

GPX Global Systems announced in 2023 an EGP 2.7 billion expansion of its Cairo 2 data center adding 12 MW of power, 1,800 racks and 9,000 m² of space, with phase one targeted to be customer-ready in late Q3 2026. Raya Data Center, in which Africa50 agreed to take a 42.9% stake for a USD 15 million equity investment, operates two data centers in Cairo and is developing a greenfield Tier III-quality data center. Retail colocation in Greater Cairo is worth USD 41.18 million in 2025 in the DC Market Insights matrix, 74.6% of all colocation revenue in Egypt.

Pricing: How Much Does Colocation Cost in Egypt?

Retail colocation in Egypt costs about USD 305 per kW of IT load per month in 2025, and wholesale colocation about USD 162 per kW per month, by DC Market Insights estimates; both prices include power. On a typical 5 kW rack, the retail price is about USD 1,525 per month.

Price per kW per month (USD)	2020	2025	2030	2035
Retail colocation	355.00	305.00	338.40	375.46
Wholesale colocation	182.00	162.00	171.95	182.51
Wholesale share of leased capacity	15%	24%	44%	55%
Average utilization of operational capacity	80%	80%	74%	78%

The blended revenue per leased kW, including interconnection and services, is about USD 319 per month in 2025. Retail prices rise 2.1% a year from 2026 and wholesale prices 1.2% a year in the model, so the blended price falls as wholesale gains share. As a cross-check, Helios’s USD 230 million valuation of RDH equals about 8.85 times the USD 25.99 million a year that RDH’s 7.1 MW of IT load would earn fully leased at the 2025 retail price, a DC Market Insights calculation.

Standards and Regulation: Which Rules Shape Colocation in Egypt?

Four sets of rules shape colocation in Egypt: NTRA licensing, the Personal Data Protection Law, tier and rating certification and the national renewable energy target.

NTRA licensing. The NTRA approved a regulatory framework to establish data centers and provide cloud computing services in August 2021. The US ITA describes the framework for Public Data Center Providers (PDCP) as offering 15-year licences that allow direct submarine cable connectivity without case-by-case approvals.

Personal Data Protection Law. Law No. 151 of 2020 is implemented through executive regulations issued as Ministerial Decree No. 816 of 2025 on 1 November 2025. Controllers and processors must notify the regulator within 72 hours of becoming aware of a personal data breach, and processing of personal data outside Egypt needs a licence and is allowed only to jurisdictions with an adequate level of protection, which, in the DC Market Insights view, favors hosting personal data in Egyptian colocation sites.

Tier and rating certification. Telecom Egypt’s RDH 2 was awarded Tier III design certification, the Administrative Capital for Urban Development (ACUD) data center holds Tier III certifications for design documents and constructed facility, Kemet aims to be the first project in the SCZONE to achieve Tier III classification, Gulf Data Hub targets Uptime Tier III and LEED for each facility, and GPX describes its Cairo site as a Rated-4 certified purpose-built facility.

Renewable energy target. Egypt aims to generate 42% of its electricity from renewable sources by 2030; in the DC Market Insights view, that target sets the green power that wholesale tenants can contract.

Market Segmentation: Which Segment Leads the Egypt Data Center Colocation Market?

Retail colocation leads the Egypt Data Center Colocation Market with 86.6% of 2025 revenue, space and power lead revenue streams with 84.7%, and Tier III facilities lead with 68.0%. Wholesale colocation is the fastest-growing segment at 36.70% a year, against 20.57% for retail, because the model assumes the new campuses are leased in MW blocks.

By Colocation Type: Retail Leads with 86.6%

Colocation type	2025 (USD million)	Share 2025	2035 (USD million)	CAGR 2025-2035
Retail Colocation	47.82	86.6%	310.39	20.57%
Wholesale Colocation	7.37	13.4%	167.93	36.70%

Retail colocation keeps 64.9% of revenue in 2035 in the model, which assumes banks, government bodies and ISPs keep buying racks and cages rather than whole halls.

By Revenue Stream: Space and Power Leads with 84.7%

Revenue stream	2025 (USD million)	Share 2025	2035 (USD million)	CAGR 2025-2035
Space and Power	46.77	84.7%	406.39	24.14%
Interconnection	4.91	8.9%	47.55	25.49%
Managed and Other Services	3.51	6.4%	24.38	21.39%

Interconnection grows fastest among revenue streams in the model, which assumes more carriers and clouds meet in Cairo facilities as new cable systems land.

By End User: IT and Telecom Leads with 41.0%

End user	2025 (USD million)	Share 2025	2035 (USD million)	CAGR 2025-2035
IT and Telecom	22.63	41.0%	227.20	25.94%
BFSI	11.87	21.5%	76.53	20.49%
Government and Defense	7.17	13.0%	57.40	23.12%
Energy and Utilities	2.81	5.1%	21.05	22.31%
Healthcare	2.32	4.2%	22.00	25.23%
Others	8.39	15.2%	74.14	24.35%

Banking, financial services and insurance (BFSI) customers spend USD 11.87 million on colocation in 2025 and grow more slowly, at 20.49% a year, because, in the DC Market Insights view, large banks keep primary systems in their own data centers and use colocation mainly for disaster recovery.

By Enterprise Size: Large Enterprises Lead with 74.0%

Large enterprises, including carriers, cloud providers, banks and government bodies, spend USD 40.84 million on colocation in 2025 and USD 389.83 million by 2035, a CAGR of 25.31%. Small and medium enterprises (SMEs) spend USD 14.35 million in 2025, 26.0% of revenue, and grow 19.95% a year in the model as more of them choose public cloud instead of racks.

By Tier Standard: Tier III Leads with 68.0%

Tier III facilities earn USD 37.53 million in 2025 and USD 344.39 million by 2035, a CAGR of 24.82%. Tier IV facilities earn USD 5.24 million (9.5%) and grow fastest at 28.07% a year, while Tier I and II facilities earn USD 12.42 million (22.5%) and grow 19.17% a year, as the model assumes older telecom sites are upgraded or retired.

DC Exclusive: The Egypt Colocation Revenue and Leased-MW Matrix

At USD 41.18 million in 2025, retail colocation in Greater Cairo is the largest cell of the matrix and 74.6% of all colocation revenue in Egypt, earned on about 9.43 MW of leased IT load.

2025	Retail revenue (USD million)	Retail leased MW	Wholesale revenue (USD million)	Wholesale leased MW	Total revenue (USD million)
Greater Cairo	41.18	9.43	5.83	2.74	47.01
Alexandria and North Coast	3.99	0.91	0.54	0.25	4.53
Suez Canal Economic Zone and Red Sea	1.02	0.23	0.86	0.40	1.88
Rest of Egypt	1.63	0.37	0.14	0.07	1.77
Total	47.82	10.94	7.37	3.46	55.19

Greater Cairo earns 87.6% of its colocation revenue from retail racks and cages in the model, reflecting ISPs, banks and government users that buy small footprints. The Suez Canal Economic Zone and Red Sea already earns 45.7% of its revenue from wholesale leases, the highest share of any region, because new capacity there is planned as large campuses, led by the 80 MW Kemet Data Centre.

The matrix is a DC Market Insights model, not an operator survey. It is built from 170 inputs: 17 operational capacity points, 16 years each of utilization, retail price, wholesale price, wholesale share, interconnection ratio and managed services ratio, 32 regional and type weights, 12 end-user weights, 4 enterprise size weights, 6 tier weights and 3 regional wholesale ratios. The method is explained on our research methodology page.

Regional Insights: Where Are the Data Centers in Egypt?

Greater Cairo leads with 85.2% of 2025 colocation revenue, and Data Center Map lists 14 data centers from 5 markets in Egypt, 10 of them in Cairo. In the Egypt Data Center Colocation Market, the Suez Canal Economic Zone and Red Sea is the fastest-growing region at 48.86% a year because large new campuses such as Kemet are planned on industrial land there.

Greater Cairo Leads with 85.2% Share

Greater Cairo, including Smart Village, Maadi Technology Park and the New Administrative Capital, earns USD 47.01 million in 2025 and USD 291.77 million by 2035, a CAGR of 20.03%. Telecom Egypt’s RDH, GPX’s Cairo 2 site, Raya Data Center’s two facilities and the planned Khazna and Benya campus are all in Greater Cairo.

Alexandria and North Coast Holds 8.2% Share

Alexandria and the North Coast earn USD 4.53 million in 2025 and USD 52.62 million by 2035, a CAGR of 27.79%. Telecom Egypt operated commercial data center facilities in Greater Cairo and Alexandria in 2020, and Alexandria is the main disaster recovery location for Cairo-based customers in the DC Market Insights view.

Suez Canal Economic Zone and Red Sea Holds 3.4% Share

The Suez Canal Economic Zone and Red Sea, covering Ain Sokhna, Port Said and Ras Ghareb, earns USD 1.88 million in 2025 and USD 100.45 million by 2035, a CAGR of 48.86%, rising to 21.0% of the market as Kemet and other SCZONE campuses open.

Rest of Egypt Holds 3.2% Share

The rest of Egypt, including the Nile Delta, Upper Egypt and Sinai, earns USD 1.77 million in 2025 and USD 33.48 million by 2035, a CAGR of 34.18%, mainly from regional telecom sites and disaster recovery space in the DC Market Insights model.

Forecast Scenarios: How Could the 2035 Forecast Change?

The Egypt Data Center Colocation Market reaches USD 478.32 million by 2035 in the base case, with a range of USD 335.42 million to USD 584.29 million across the low and high scenarios.

Scenario	Assumption from 2026	2035 (USD million)	CAGR 2025-2035
Low	Capacity additions 30% below base; prices 5% lower	335.42	19.78%
Base	Operational capacity reaches about 173 MW by 2035; wholesale reaches 55% of leased capacity	478.32	24.10%
High	Capacity additions 20% above base; prices 4% higher	584.29	26.61%

In the DC Market Insights scenarios, the low case reflects delayed foreign funding and a further currency fall, and the high case assumes ADC Egypt, Kemet and the Khazna campus keep their announced schedules.

Competitive Insights: Which Data Center Companies in Egypt Lead Colocation?

• Telecom Egypt
• GPX Global Systems
• Raya Data Center
• Vodafone Business
• Elsewedy Electric
• Cassava Technologies
• Khazna Data Centers
• Benya Group
• Gulf Data Hub
• Intro Group
• Hassan Allam Digital Infrastructure
• Africa50
• Huawei Cloud

Telecom Egypt leads the Egypt Data Center Colocation Market with about 41% of 2025 revenue, and the top three operators, Telecom Egypt, GPX Global Systems and Raya Data Center, hold about 64%, by DC Market Insights estimates based on their announced capacity and the RDH customer base. According to a 2023 Telecom Egypt release, RDH will reach up to 7.1 MW of IT load after its second phase and up to 16.3 MW across all phases, and Telecom Egypt runs 11 data centers across seven cities. The next wave of competition comes from ADC Egypt, Khazna and Benya, Gulf Data Hub and Kemet, which together have announced plans for more than 600 MW by DC Market Insights count, and from Hassan Allam Digital Infrastructure, licensed in June 2026.

Recent Developments

• In July 2025, SEA-ME-WE 6 completed its two Egyptian landings, at Port Said and Ras Ghareb (Source: Telecom Egypt press release).
• In November 2025, Egypt issued the executive regulations of the Personal Data Protection Law as Ministerial Decree No. 816 of 2025 (Source: Al Tamimi legal briefing).
• In June 2026, the NTRA licensed Hassan Allam’s new digital arm to operate data centers and provide cloud computing services, with an initial USD 400 million investment (Source: Data Center Dynamics report).
• In July 2026, Telecom Egypt decided not to sell a 75% to 80% stake in RDH to Helios Investments and will carve its data center services into a wholly owned subsidiary (Source: Telecom Egypt press release).
• In September 2026, Vodafone Business, Elsewedy Electric and Cassava Technologies announced ADC Egypt, expected to launch with 20 MW within three years and scale to 200 MW, offering colocation, hosting and interconnection services (Source: Ahram Online report).
• In September 2026, the communications minister reviewed Intro Group’s plans for the 80 MW Kemet Data Centre in the SCZONE, with USD 270 million in the first phase (Source: Daily News Egypt report).

We follow these licences, launches and financings as they happen in our data center industry updates. Related reports: Egypt Data Center Market and Egypt Data Center Infrastructure Market.

Methodology: How We Built the Egypt Data Center Colocation Market Model

DC Market Insights built the Egypt Data Center Colocation Market bottom-up from operational third-party colocation capacity at the end of each year from 2019 to 2035, starting at 7.5 MW in 2019 and reaching 20.5 MW at the end of 2025 and about 173 MW at the end of 2035. Average capacity in each year is multiplied by utilization (80% in 2025) to give leased IT load, which is split into retail and wholesale (24% wholesale in 2025, 55% in 2035) and priced per kW per month (USD 305 retail and USD 162 wholesale in 2025). Interconnection adds 10.5% and managed services 7.5% of space and power revenue in 2025. The total was split by 2 colocation types, 3 revenue streams, 6 end-user groups, 2 enterprise sizes, 3 tier groups and 4 regions, and every split sums to the market total. The result was checked top-down against the 13 MW of live IT reported for Egypt in January 2024, the 7.1 MW of IT load at RDH after its second phase and Helios’s USD 230 million valuation of RDH, and against the Egypt Data Center Market model, whose 2025 spending on colocation facilities of USD 120.12 million is about 2.2 times colocation revenue, consistent with a market still building ahead of demand.