Income to Invest $280 Million in New Data Center Near Alexandria, Egypt

Infrastructure company Income has announced plans to invest approximately $280 million in a new data center near Alexandria, Egypt, marking a significant step in the country’s push to become a digital hub bridging Africa, the Middle East, and Europe. The project, which will be implemented in multiple phases, is expected to take three years to complete.

The facility will be located in Borg El Arab, a city about 52 kilometers southwest of Alexandria in northern Egypt. The Egyptian Ministry of Electricity and Renewable Energy will initially supply 100 megawatts (MW) of power to the site, with capacity expected to rise to 400 MW during future phases, according to a report from Al Bayan newspaper.

The announcement follows discussions between Egypt’s Minister of Electricity and Renewable Energy, Mahmoud Esmat, and Income’s chairman, Hisham Sheta, regarding the project’s energy and infrastructure requirements. Esmat reportedly confirmed that Egypt’s national grid has sufficient capacity to meet the data center’s power demands. The meeting, held in May at the Electricity Ministry’s headquarters in the New Capital, was also attended by Ali Abdel Fattah, executive chairman of the Egyptian Electric Utility and Consumer Protection Regulatory Agency.

During the meeting, Esmat reviewed the operational model of data centers and acknowledged the immense computing power required to process the growing volume of data generated by technologies such as artificial intelligence. “The Ministry of Electricity and Renewable Energy is open to cooperation in this field and has a clear action plan to support localising the data center industry in line with the state’s vision and strategy for advanced technology localisation,” Esmat said.

The project aligns with Egypt’s national strategy for data centers and cloud computing, which aims to position the country as a major digital and subsea cable hub connecting Africa, the Middle East, and Europe. Giza-based Income is a subsidiary of the IGI group, which operates across construction, real estate, development, industry, and agricultural sectors.