Egypt's Renergy Group may establish data center alongside its green energy projects in Sinai Peninsula

Egypt's Renergy Group Considers Data Center to Pair with Major Sinai Green Hydrogen Project

March 21, 2026

Egyptian energy firm Renergy Group is exploring the development of a data center facility adjacent to its massive $15 billion green hydrogen and solar power complex in the Sinai Peninsula, signaling a potential convergence of green energy and digital infrastructure in a strategically important region.

The proposed data center would be directly powered by the renewable energy generated at Renergy's flagship project in the El-Tor area of southern Sinai. That project, spanning 127 square kilometers, is centered on a solar plant with a substantial 15GW capacity designed to operate off-grid. Its primary aim is to produce approximately 400,000 tons of liquid green hydrogen annually for export to European markets, according to a company press release.

While details on the data center's IT capacity remain undisclosed, initial plans outline a facility starting at 10,000 square meters (108,000 square feet), with a long-term expansion potential reaching up to 500,000 square meters (5.4 million square feet). This move represents a strategic pivot for Renergy, a consortium formed through a collaboration between Egypt's state-affiliated National Organization of Military Production, local renewable energy firm Green Tech Egypt, and Bahrain-based Oak Group Holding.

The initiative holds significant implications for Egypt's digital economy and its role in global connectivity. Although not currently a major data center hub, Egypt's geographic position is crucial for international communications. The nearby Suez Canal serves as a primary conduit for subsea cables linking Europe, Asia, and Africa's east coast, with over a dozen systems traversing the region. Co-locating a data center with a dedicated, large-scale renewable power source could offer a unique value proposition for international clients seeking sustainable computing capacity along this critical digital corridor.

Source: datacenterdynamics

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