Egypt, UAE seal agreement to develop data centers
Egypt and the United Arab Emirates (UAE) have formally entered into a memorandum of understanding (MoU) to collaborate on the establishment of data centers, as per an official statement from the cabinet.
The MoU was signed by the Egyptian Ministry of Communications and Information Technology and the Emirati Ministry of Investment. This agreement encompasses cooperation in investment for the development of data center projects in Egypt, starting with an initial capacity of 100 megawatts (MWs) for the first phase and a future targeted capacity of up to 1,000 MWs.
Additionally, the MoU outlines the exchange of information related to these projects and commits both parties to collaborate on developing a joint work plan and mechanisms for monitoring the implementation of the agreement. This collaboration signifies a commitment to advancing digital infrastructure and fostering technological development in both Egypt and the UAE.
Africa’s cloud computing and data center market is undeniably untapped. The continent still grapples with the lack of continent-wide digital infrastructure crucial for a digitally included region. Significant investments are being poured by operators into the space with the hope of bridging this gap while tapping into the market revenue potential. The Africa data center market was valued at $2 billion in 2020 and is expected to grow to $5 billion by 2026, at a CAGR of 15%.