Mubasher: The UAE’s Ministry of Investment and Egypt’s Ministry of Communications and Information Technology signed a memorandum of understanding (MoU) to establish data centre projects in Egypt.
Under the agreement, the two parties will join forces and develop data centres that can reach a total capacity of 1,000 megawatts (MW), according to a press release.
The joint partnership aligns with the African country's Digital Egypt strategy that aims to foster the digital economy by enhancing digitalisation across major regional industries.
The strategy also seeks to expand digital infrastructure to ensure widespread internet access and promote entrepreneurship and digital innovation among citizens.
The Egypt data centre market is expected to rise to $1.10 billion by 2030 from its 2022 valuation of $490 million. This is attributed to a compound annual growth rate of 12.80% during the forecast period spanning from 2023 to 2030.
With 15 operational data centres, the Arab Republic leverages its strategic location in coastal areas through access to subsea cables that provide robust global data connectivity.
Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE, commented: “The signing of this agreement represents a significant milestone in driving innovation and growth, allowing us to contribute to the digitalization of Egypt as well as the nation’s preparedness for the future.”
Amr Taalat, Minister of Communications and Information Technology of Egypt, noted: “The initial phase aims to achieve a capacity of 100 megawatts, with a future target of 1,000 megawatts.”
“A joint action plan and mechanisms for monitoring the memorandum’s implementation will also be developed through cooperation between the two sides,” Taalat underlined.
The total trade volume between Egypt and the UAE amounted to nearly $6.64 billion in July 2022-March 2023 period. This included $3.89 billion in Emirati imports and $2.75 billion in exports to the Gulf country.
