Egypt’s National Telecommunications Regulatory Authority has awarded a licence to the new digital arm of construction group Hassan Allam to operate data centers and provide cloud computing services.
Hassan Allam Digital Infrastructure said it plans to back the move with an initial investment of $400 million in a data center expected to host public and private sector clients, including government organisations, financial institutions, and local and international businesses.
The project will be developed through a strategic partnership with A15, an early-stage venture capital firm based in Cairo that invests in digital products and startups across the Middle East and North Africa.
Mohamed Magdy Allam, managing director at Hassan Allam Digital Infrastructure, said: “This milestone marks an important step in our journey to support the growing demand for data center services, cloud computing, artificial intelligence applications, and the broader data-driven economy.
“We are building a platform designed to meet future digital needs, attract high-value investments, and contribute to positioning Egypt as a leading regional hub for technology, innovation, and digital services.”
Raafat Hindy, Egypt’s minister of communications and information technology, said during the licensing event on 15 June that the decision reflects Egypt’s commitment to developing data centers and cloud computing as key pillars of the digital economy, TechAfrica News reported.
Hindy met last month with his counterparts at the ministries of electricity and foreign trade to highlight the importance of integrating government efforts to accelerate Egypt’s national strategy for data centers and cloud computing.
Mahmoud Essmat, the North African nation’s electricity minister, said that his department has a clear plan to support the localization of data centers in the country. He noted the ongoing expansion in renewable energy, which is expected to reach 45 percent of the energy mix within the next two years, along with long-term electricity supply agreements for investors.
Egypt’s national strategy for data centers and cloud computing aims to establish the country as a main digital and subsea cable hub bridging Africa, the Middle East, and Europe. It integrates investments in renewable energy, foreign investor incentives, and digital sovereignty.
The strategy is also linked to Egypt’s Digital Vision plan to modernize the country through digital transformation and skills.
Learn more about the data center market in the NAME region and Saudi Arabia and meet with other executives and experts in the region at the DCN Riyadh event next year.