Egypt Grants License for $400 Million Data Center Expansion to Boost Digital Economy
July 1, 2026
Egypt Grants License for $400 Million Data Center Expansion to Boost Digital Economy
Egypt has taken a significant step toward solidifying its position as a regional technology hub by awarding a data center operating license to Hassan Allam Digital Infrastructure, the newly formed digital arm of construction group Hassan Allam. The license, granted by the National Telecommunications Regulatory Authority, allows the company to operate data centers and provide cloud computing services, marking a key milestone in the country’s broader strategy to modernize its digital infrastructure.
The initiative is backed by an initial investment of $400 million, with plans to build a data center designed to serve a wide range of clients, including government organizations, financial institutions, and both local and international businesses. The project will be developed in partnership with A15, a Cairo-based venture capital firm that invests in digital products and startups across the Middle East and North Africa.
Mohamed Magdy Allam, managing director at Hassan Allam Digital Infrastructure, emphasized the importance of the license in meeting the growing demand for data center services, cloud computing, artificial intelligence applications, and the broader data-driven economy. “This milestone marks an important step in our journey to support the growing demand for data center services, cloud computing, artificial intelligence applications, and the broader data-driven economy,” he said. “We are building a platform designed to meet future digital needs, attract high-value investments, and contribute to positioning Egypt as a leading regional hub for technology, innovation, and digital services.”
The licensing event, held on June 15, was attended by Egypt’s Minister of Communications and Information Technology, Raafat Hindy, who noted that the decision reflects the government’s commitment to developing data centers and cloud computing as key pillars of the digital economy. Hindy recently met with his counterparts from the ministries of electricity and foreign trade to emphasize the need for coordinated government efforts to accelerate Egypt’s national strategy for data centers and cloud computing.
Mahmoud Essmat, Egypt’s minister of electricity, outlined his department’s clear plan to support the localization of data centers, highlighting the ongoing expansion of renewable energy. He noted that renewable energy is expected to reach 45 percent of the energy mix within the next two years, and that long-term electricity supply agreements are being offered to investors to ensure stability and attract further investment.
Egypt’s national strategy for data centers and cloud computing aims to establish the country as a main digital and subsea cable hub bridging Africa, the Middle East, and Europe. The strategy integrates investments in renewable energy, incentives for foreign investors, and a focus on digital sovereignty. It is also closely linked to Egypt’s Digital Vision plan, which seeks to modernize the country through digital transformation and skills development.
Source: datacenterdynamics
