Best Data Center & Digital Infrastructure Lawyers in Egypt

About Data Center & Digital Infrastructure Law in Egypt

Data centers and digital infrastructure are at the heart of Egypt’s digital transformation strategy. As the country accelerates its efforts to become a regional hub for digital services, the legal landscape governing data centers and digital infrastructure projects is evolving rapidly. These laws cover a broad array of topics including data protection, cybersecurity, licensing, investment incentives, construction and zoning, as well as telecommunications infrastructure. Understanding the local legal environment is essential for stakeholders investing in, managing, or using data center services in Egypt.

Why You May Need a Lawyer

Engaging a lawyer with experience in data center and digital infrastructure law can be crucial for several reasons:

• Negotiating contracts and service level agreements (SLAs) with providers or clients
• Advising on data privacy and compliance with Egypt’s cybersecurity and data protection laws
• Securing necessary government licenses and permits for construction and operation
• Facilitating land acquisition or rental agreements for data center sites
• Navigating tax incentives and investment opportunities under Egypt’s investment laws
• Handling disputes related to service interruptions, breaches of contract, or data breaches
• Assisting with cross-border data transfers and alignments with international regulations
• Supporting merger and acquisition activities involving digital infrastructure assets

Legal counsel can help you minimize risk, ensure compliance, and protect your investments in Egypt’s dynamic digital infrastructure sector.

Local Laws Overview

The legal framework affecting data centers and digital infrastructure in Egypt is comprised of several key laws and regulations:

• Cybercrime and Data Protection: Egypt’s Anti-Cybercrime Law No. 175 of 2018 establishes requirements for network security, data retention, and the reporting of cyber incidents. The country’s emerging data protection law includes obligations for the collection, processing, and transfer of personal data.
• Telecommunications Regulation: The National Telecommunications Regulatory Authority (NTRA) oversees licensing, compliance, and spectrum allocation for digital infrastructure, as stipulated by the Telecommunications Law No. 10 of 2003.
• Licensing and Construction: Operating a data center typically requires commercial registration, sector-specific licensing, and building permits. Zoning laws and environmental compliance may also be relevant, depending on the location and scale.
• Investment Laws: The Investment Law No. 72 of 2017 provides incentives and guarantees for projects in strategic sectors, including IT and digital infrastructure.
• Critical Infrastructure Security: Data centers may be considered part of Egypt’s critical infrastructure and may be subject to additional security requirements and inspections.

Staying compliant with these and other regulations is essential for anyone involved in Egypt’s digital infrastructure sector.

Frequently Asked Questions

What are the main regulatory bodies for data centers in Egypt?

The main regulatory bodies are the National Telecommunications Regulatory Authority (NTRA), the Ministry of Communications and Information Technology (MCIT), and, in some cases, the General Authority for Investment (GAFI).

Is there a personal data protection law in Egypt?

Yes. Egypt has enacted a data protection law that regulates the collection, processing, and storage of personal data. This law aligns with international standards and introduces data subject rights, penalties, and registration requirements for controllers and processors.

Do data center operators need special licenses in Egypt?

Yes. Depending on the nature of their services, data center operators may require telecommunications licenses from the NTRA, commercial registration, and various permits for construction and operation.

How does the law regulate data localization and cross-border data transfer?

The data protection law restricts some cross-border data transfers, especially for sensitive personal data, unless certain safeguards are met or specific permissions are obtained from the authorities.

What are the cybersecurity requirements for data centers in Egypt?

Data centers must comply with cybersecurity requirements under the Anti-Cybercrime Law, including implementing technical and organizational measures to prevent breaches, reporting incidents, and cooperating with government authorities during investigations.

Are there investment incentives for digital infrastructure in Egypt?

Yes. The Investment Law provides tax breaks, customs incentives, and legal guarantees for digital infrastructure projects recognized as strategic by the government.

What are common contract issues in data center services?

Common issues include clauses on uptime and service levels, liability for outages, data security guarantees, dispute resolution mechanisms, and compliance with local law.

Can foreign investors own and operate data centers in Egypt?

Yes. Foreign investors are allowed to own and operate data centers, subject to investment regulations, local licensing, and sector-specific restrictions.

What legal risks do data center operators face in Egypt?

Primary risks include regulatory non-compliance, data breaches, contractual disputes, environmental violations, and operational disruptions due to government inspections.

What should I do if I experience a data breach in my Egyptian data center?

You must promptly notify the relevant authorities, take steps to contain and assess the breach, and inform affected data subjects if required. Legal advice is essential to manage the process and mitigate liabilities.

Additional Resources

• National Telecommunications Regulatory Authority (NTRA)
• Ministry of Communications and Information Technology (MCIT)
• General Authority for Investment (GAFI)
• Egyptian Supreme Cybersecurity Council
• Information Technology Industry Development Agency (ITIDA)
• Egyptian Bar Association (for referrals to specialized lawyers)

Next Steps

If you are planning to invest in, operate, or use data center services and digital infrastructure in Egypt, consider the following steps:

• Identify your specific legal needs and the types of permits, licenses, or compliance obligations your project requires
• Consult with a lawyer experienced in telecommunications, IT, and data privacy law in Egypt
• Conduct a legal due diligence review before signing contracts or committing capital
• Engage with relevant regulatory bodies early in your planning process
• Stay updated on legal changes and new regulatory requirements in Egypt’s digital sector

Taking these steps will help you navigate the Egyptian legal system effectively and ensure your venture into data center and digital infrastructure is secure, compliant, and successful.