• Egypt’s telecom regulator has awarded a new data center license to Hassan Allam Digital Infrastructure and Data Center Solutions for a project backed by an initial investment of $400 million.
• The license marks the tenth data center authorization issued in Egypt over the past two years, underscoring rapid growth in the sector.
• Egypt aims to strengthen its position as a regional data and cloud services hub while supporting artificial intelligence adoption and digital transformation.

Egypt continues to strengthen its digital infrastructure. The National Telecom Regulatory Authority (NTRA) granted a license on Monday, May 15, to Hassan Allam Digital Infrastructure and Data Center Solutions to build and operate a data center in the country. The company is developing the project in partnership with technology firm A15 and plans to invest an initial $400 million during the first phase.

According to the project developers, the investment represents the first stage of a broader expansion program that will continue in the coming years. The facility will comply with international standards and provide data hosting services, cloud computing capabilities and infrastructure designed for artificial intelligence applications. The center will serve government agencies, financial institutions and both local and international businesses.

The announcement comes as Egypt accelerates investment in digital infrastructure. According to the NTRA, the authorization represents the tenth data center license issued during the past two years, highlighting the sector’s rapid expansion.

Egyptian authorities increasingly view data centers as a critical component of digital transformation and national technological sovereignty. As a result, policymakers have intensified efforts to encourage investment in the sector.

At the same time, the government is preparing a national strategy focused on data centers and cloud computing. Egypt plans to leverage its strategic geographic location at the crossroads of Africa, Europe and Asia, alongside its telecommunications infrastructure, to attract additional investment in digital services.

The government aims to strengthen Egypt’s role as a regional platform for data exchange and digital services by expanding infrastructure capacity and enhancing connectivity.

The project also aligns with Egypt’s broader artificial intelligence ambitions. Egypt’s second national AI strategy targets a 7.7% contribution from digital technologies and artificial intelligence to gross domestic product by 2030.

Authorities also estimate that AI could generate up to $42.7 billion in economic value over the coming years through adoption across sectors including public services, finance, healthcare and manufacturing.

Beyond the Egyptian market, the new infrastructure aims to address growing regional demand for data hosting and cloud services. R

apid advances in artificial intelligence, e-commerce and corporate digital transformation continue to increase demand for data storage and computing capacity across Africa and neighboring regions.

This article was initially published in French by Samira Njoya

Adapted in English by Ange J.A de Berry Quenum