Legal Requirements for Data Centers in Egypt

With the rapid expansion of digital transformation, the demand for data centers in Egypt has grown significantly. Data centers are critical infrastructure for supporting the storage, processing, and dissemination of data for various industries. This article explores the regulatory landscape and legal requirements for establishing data centers in Egypt, detailing the relevant laws, necessary steps, and key considerations.

Relevant Laws and Regulations

Telecommunications Regulation Law (Law No. 10 of 2003):

The Telecommunications Regulation Law establishes the legal framework for the telecommunications sector in Egypt. It sets out the requirements for licensing, operating, and managing telecommunications services, including data centers. Entities must obtain a license from the National Telecommunications Regulatory Authority (NTRA) to operate data centers. Operators must also adhere to technical and operational standards set by the NTRA.

Cybercrime Law (Law No. 175 of 2018):

The Cybercrime Law provides regulations to combat cybercrimes and ensure the security of information systems. Data centers must implement measures to protect data against unauthorized access, breaches, and cyber-attacks. Additionally, they must cooperate with law enforcement agencies in investigations related to cybercrimes.

Data Protection Law (Law No. 151 of 2020):

The Data Protection Law governs the processing of personal data and establishes the rights of data subjects. Data centers must obtain explicit consent from individuals for processing their personal data and ensure transparency about data usage. Implementing robust security measures to protect personal data from breaches and unauthorized access is also essential under this law.

Steps to Establish a Data Center in Egypt

1. Conduct Feasibility Study:

Before initiating the establishment of a data center, conducting a comprehensive feasibility study is essential. This study should assess the market demand, potential locations, infrastructure requirements, and financial viability.

2. Obtain Necessary Licenses:

• NTRA License: Following the feasibility study, the next step is to obtain the necessary licenses. To do this, one must submit an application to the NTRA, including details about the planned data center, its location, and technical specifications. The NTRA reviews the application, ensuring compliance with regulatory standards, and issues the license upon approval.

3. Enter into Contracts with Service Providers:

• a. Electricity Supply:
  • Agreement with Electricity Company: Establish a contract with an electricity provider to ensure a stable and sufficient power supply.

• b. Telecommunications Services:
  • ISP Contract: Secure an agreement with an internet service provider (ISP).

4. Compliance and Auditing:

Maintaining compliance with regulatory requirements involves regular audits and reporting. Conducting regular internal audits ensures ongoing compliance with laws and regulations, while engaging third-party auditors validates compliance and security measures.

Conclusion

Establishing a data center in Egypt involves navigating a complex regulatory landscape and adhering to multiple legal requirements. By understanding the relevant laws, securing necessary licenses, and implementing robust security and operational measures, both foreign and local businesses can successfully set up and operate data centers in Egypt. This infrastructure will support the growing digital economy and provide critical services to various sectors.

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