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$400 Million Egypt Data Center Approved in Bid to Boost Cloud Infrastructure

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The National Telecommunications Regulatory Authority (NTRA) has inked a licensing agreement with Hassan Allam Digital Infrastructure to build and operate a $400 million data centre in Egypt. This information was revealed by a statement by the Ministry of Communications and Information Technology on Monday. Also, this data center will join another similar development in West Cairo in enhancing Egypt’s computing capabilities.

Additionally, the move aims to expand the country’s digital infrastructure. Also, it will support the growing demand for data, cloud, and technology services. This was also revealed by the statement.

Hassan Allam Digital Infrastructure is the digital infrastructure and data centre arm of Hassan Allam Holding. Hassan Allam Holding is an engineering, construction, and investment company. Furthermore, the data center project is based on a partnership between Hassan Allam and Egyptian technology and venture capital firm A15.

Significance of the Licensing Agreement

Moreover, the licence aims to support Egypt’s plans to expand its data centre and cloud computing industries. Additionally, it aims to strengthen the digital economy and create an attractive investment environment for local and foreign partners. This was mentioned by the Communications Minister Raafat Hindi.

Furthermore, Egypt has been accelerating its digital transformation and enhancing public service delivery. This is expected to be achieved by establishing an integrated data infrastructure that supports government operations, private-sector participation, and cloud computing capabilities.

The National Telecommunications Regulatory Authority (NTRA) has inked a licensing agreement with Hassan Allam Digital Infrastructure to build and operate a $400 million data centre in Egypt.
The National Telecommunications Regulatory Authority (NTRA) has inked a licensing agreement with Hassan Allam Digital Infrastructure to build and operate a $400 million data centre in Egypt.

Also, the project will combine Hassan Allam’s expertise in developing and implementing infrastructure projects with A15’s specialized digital and operational expertise. This information was revealed by Hassan Allam Digital Infrastructure Managing Director Mohamed Magdy Allam.

Hassan Allam’s Goals and Plans

Moreover, there are plans for Hassan Allam to increase investments in upcoming years. This will be in bid to meet growing demand for data hosting and cloud computing services for government institutions, the financial sector, and local and international firms.

Also, Hindi said the ministry is currently preparing a national strategy for data centres and cloud computing and developing the ICT sector’s regulatory and legislative framework in cooperation with several stakeholders.

Lastly, the strategy aims to position Egypt as a regional hub for data exchange and digital services while strengthening its digital sovereignty. Additionally, the data centre sector is expected to grow by 6.98 percent annually between 2025 and 2030. As for the total market revenue it is projected to reach nearly $739 billion by 2030.

Project Factsheet

Location: Egypt

Total Investment: $400 Million

Developer: Hassan Allam Digital Infrastructure (a subsidiary of Hassan Allam Holding)

Strategic Tech Partner: A15 (Regional Venture Capital and Technology Fund)

Licensing Authority: National Telecommunications Regulatory Authority (NTRA)

Primary Focus: Cloud computing, Artificial Intelligence (AI) applications, and data-driven infrastructure solutions

Target Clients: Government institutions, financial sectors, and domestic/international corporations

Regulatory Framework: Egypt’s Integrated National Strategy for Data Centers and Cloud Computing

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