Egyptian Data Center Venture Targets US$1 Billion Investment for 200 MW AI-Ready Buildout

Vodafone Business, Elsewedy Electric Group, and Cassava Technologies have joined forces to develop one of Egypt's largest data center facilities under the Africa Data Centers Egypt (ADC Egypt) project. The venture, announced through a collaborative partnership, is designed to address the country's rapidly growing demand for cloud services and artificial intelligence workloads, positioning Egypt as a rising digital infrastructure hub in the region.

The project will initially deliver 20 MW of IT capacity, with a long-term roadmap to scale up to 200 MW, specifically engineered to host large-scale AI applications. According to a press release, Egyptian Minister of Communications and Information Technology Raafat Hindy expects the first phase to attract US$200 million in investment, with total capital injection reaching US$1 billion by the time the full buildout is completed.

Mohamed Abdullah, Managing Director of Vodafone Egypt and Regional Head of International Markets at Vodacom Group, emphasized the strategic importance of the collaboration. "These partnerships reflect Vodafone's commitment to its role as a long-term technology partner in supporting digital transformation in Egypt, and transforming our investments into real engines of economic development. By developing digital infrastructure, supporting artificial intelligence applications, and empowering vital sectors, we contribute to attracting more investments, creating job opportunities, and developing digital exports," he said.

Minister Hindy highlighted that Egypt is actively working to expand its data center footprint and capabilities, including the preparation of an integrated national strategy for data centers that outlines the storage and computing requirements of both state and economic sectors. This strategy, he noted, is intended to attract both foreign and domestic investment into the country's digital economy.

Ahmed Al Suwaidi, Chief Executive Officer and Managing Director of Elsewedy Electric Group, said the ADC Egypt project combines the company's expertise in energy, infrastructure, and implementation with its partners' proficiency in data centers and technology. Hardy Pemhiwa, President and Chief Executive Officer of Cassava Technologies, added that Egypt is a pivotal market in the company's mission to expand digital infrastructure across Africa and the Middle East.

Mahmoud El Khatib, Vice President of Vodafone Egypt, elaborated on the group's commercial strategy: "Vodafone Business' strategy is based on leveraging our global expertise and technological partnerships to provide the latest solutions and advanced technologies locally, supporting the development of the digital economy in Egypt. The establishment of ADC Egypt in partnership with Elsewedy Electric Group and Cassava Technologies embodies this strategy, by developing the largest data center in Egypt that combines global expertise and local capabilities to build a digital infrastructure with global and scalable standards."

The development comes at a time when data hosting and processing capabilities are becoming critical bottlenecks for regional digital growth. According to Arizton Advisory & Intelligence, as of April 2026, the data center market is projected to expand from US$305 million in 2025 to US$865 million by 2031, underscoring the sustained demand drivers behind the ADC Egypt venture. By aligning local energy expertise with global technology partnerships, the project is expected to set a benchmark for large-scale, AI-ready data infrastructure in North Africa.