The Ministry of investment in the UAE and the Ministry of communications and Information Technology in the Arab Republic of Egypt have signed a memorandum of understanding to develop a comprehensive framework for investment cooperation in the field of digital infrastructure, especially in data center projects in the Arab Republic of Egypt.
The MoU was signed by H. E. Mohammed Hassan Al Suwaidi, Minister of investment of the UAE, and H. E. Dr. Amr Talaat, Minister of communications and Information Technology of the Arab Republic of Egypt.
The data centers that will be developed under this agreement can reach a total operating capacity of 1000 MW, as the growing demand for data centers in the Arab Republic of Egypt is due to the “digital Egypt” strategy, which is a well-established and comprehensive plan to strengthen the digital economy through the development of digitization across key regional industries. The digital strategy also aims to simplify the process of accessing government services in Egypt, expand the digital infrastructure to ensure widespread internet access, and promote entrepreneurship and digital innovation.
The data center market in the Arab Republic of Egypt is expected to witness significant growth, as forecasts indicate that its value will rise to 1,138.67 million dollars by 2030, compared to 2022, which amounted to about 490.62 million dollars, recording a total annual growth rate of 12.8% during the period between 2023 and the year .2030 with 15 operational data centers, Egypt benefits from its strategic location in coastal areas, especially from access to submarine cables that provide a strong connection to global data.
The memorandum provides for enhancing effective cooperation by upgrading relations between government and private institutions in the United Arab Emirates and the Arab Republic of Egypt, and providing incentives and facilities to support relevant initiatives to serve cooperation efforts and exchange experiences and knowledge .
