Egypt has approved a new US$400 million data centre project aimed at expanding the country’s digital infrastructure and supporting the growing demand for cloud computing and artificial intelligence (AI) services, authorities and developers said.
The National Telecommunications Regulatory Authority (NTRA) granted a licence to Hassan Allam Digital Infrastructure and Data Center Solutions on June 15 to build and operate the facility in partnership with technology company A15.
The project’s first phase will involve an investment of US$400 million and forms part of a broader expansion programme expected to continue over the coming years.
According to the developers, the facility will be built to international standards and provide data hosting, cloud computing and AI-ready infrastructure services. It is expected to serve government agencies, financial institutions and both local and international businesses.
The approval comes as Egypt accelerates investment in digital infrastructure as part of its wider digital transformation agenda.
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The NTRA said the licence is the tenth data centre permit issued in the country over the past two years, highlighting the rapid growth of the sector.
Egyptian authorities increasingly view data centres as strategic assets that can support technological innovation, strengthen digital sovereignty and reduce dependence on external infrastructure.
The new facility also aligns with government plans to develop a national strategy for data centres and cloud computing, leveraging Egypt’s geographic position linking Africa, Europe and Asia, as well as its extensive telecommunications network.
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Officials hope the initiative will strengthen Egypt’s role as a regional hub for data exchange, digital services and emerging technologies.
The project is also expected to support the country’s ambitions in artificial intelligence. Under Egypt’s second National AI Strategy, authorities aim to increase the contribution of AI and digital technologies to 7.7 percent of gross domestic product by 2030.
Government estimates suggest AI could contribute as much as US$42.7 billion to the economy in the coming years through wider adoption across sectors including healthcare, finance, industry and public administration.
Beyond serving domestic demand, the data centre is expected to cater to regional clients as businesses and governments across the Middle East and Africa seek additional data storage and computing capacity.
Demand for such infrastructure has surged in recent years, driven by the rapid expansion of AI applications, e-commerce platforms and broader digital transformation efforts by companies and public institutions.
The latest investment underscores Egypt’s efforts to position itself as a leading digital economy in the region while attracting further technology-focused investment.
