Arab Finance: Egypt is preparing a national strategy to regulate the establishment of data centers as the government seeks to position the country as a regional and international hub for data traffic and digital services, the cabinet said on May 24th.
Prime Minister Mostafa Madbouly chaired a meeting to review steps for preparing the strategy, following directives from President Abdel Fattah El-Sisi to develop a clear framework in coordination with relevant ministries and authorities.
Madbouly said the establishment of data centers was closely linked to the availability of electricity supplies, adding that the Electricity and Renewable Energy Ministry had identified locations with access to renewable energy sources that could host such facilities.
The government is also studying a comprehensive regulatory and operational framework for the data center sector, he added.
Minister of Communications and Information Technology Raafat Hindi presented the ministry’s vision for developing data centers and cloud computing services, aimed at attracting local and foreign investments and strengthening Egypt’s position in digital services.
Moreover, Hindi stressed the importance of coordination between the communications ministry and other relevant authorities.
The Electricity Ministry reviewed proposed sites for data centers, the contracting mechanisms to be adopted, and indicative pricing models, according to the statement.
Meanwhile, Minister of Housing, Utilities, and Urban Communities Randa El-Menshawy noted that several meetings had been held with officials to identify suitable locations in new urban communities based on a number of criteria, adding that the ministry was ready to cooperate as long as the projects delivered benefits to the state.
The meeting concluded with an agreement to form a committee under the supervision of the prime minister to finalize a strategy for the sector amid growing investor interest in establishing data center projects in Egypt.
