Egypt Approves $400 Million Data Center Project to Boost Cloud Infrastructure

Egypt has taken another step toward strengthening its digital infrastructure after granting a license to Hassan Allam Digital Infrastructure and Data Center Solutions to establish and operate data centers and provide cloud computing services. The license was awarded by the National Telecommunications Regulatory Authority during a ceremony witnessed by Communications and Information Technology Minister Raafat Hindi in Cairo on June 15.

The company plans to invest an initial $400 million in the first phase of a new data center project designed to meet international standards, with further expansion planned in the coming years. The facility is expected to serve government institutions, financial organizations, and local and international businesses, addressing growing demand for data hosting, cloud computing, and digital services.

Speaking at the event, Minister Raafat Hindi said the licensing decision reflects Egypt’s commitment to developing the data center and cloud computing industry as a key pillar of the digital economy. He noted that the government is working with stakeholders to create an integrated national strategy for data centers and cloud computing aimed at enhancing digital sovereignty and positioning Egypt as a regional hub for data exchange and digital services.

The minister added that Egypt’s strategic geographic location and expanding digital infrastructure provide a strong foundation for attracting local and foreign investment in advanced technology sectors. He also emphasized the importance of modern regulatory and legislative frameworks to support industry growth and ensure services are delivered in line with international standards.

National Telecommunications Regulatory Authority CEO Mohamed Shamroukh said the regulator continues to develop policies that support investment, innovation, and secure digital services. He noted that increasing demand for data center licenses demonstrates growing investor confidence in Egypt’s technology market and digital transformation agenda.

Hassan Allam Digital Infrastructure said the project will be developed in partnership with A15 and will support emerging technologies including cloud computing, artificial intelligence, and data-driven services. The company said the investment is intended to help meet future digital infrastructure needs while attracting additional technology investments to Egypt.

The announcement forms part of Egypt’s broader strategy to expand digital infrastructure, accelerate digital transformation, and improve the efficiency and security of digital services. According to the regulator, ten licenses for the establishment and operation of data centers have been issued over the past two years, underscoring the country’s ambition to strengthen its position as a leading regional digital and cloud services hub.