CAIRO — Egypt has taken another step in its bid to become a regional digital infrastructure hub after granting a licence to Hassan Allam Digital Infrastructure and Data Center Solutions to establish and operate data centres and cloud-computing services, backed by an initial investment of $400 million.
The licence agreement was signed between the National Telecom Regulatory Authority (NTRA) and Hassan Allam Digital Infrastructure and Data Center Solutions in the presence of Communications and Information Technology Minister Raafat Hindi and senior officials from the government and private sector.
The planned facility will be developed according to international standards and is expected to serve growing demand for data hosting, cloud services, artificial intelligence applications and digital infrastructure solutions across government entities, financial institutions and local and international businesses. The company indicated that the initial investment represents the first phase of a broader expansion programme that could see additional capital deployed over the coming years.
The project forms part of Egypt’s wider strategy to strengthen its digital economy and capitalize on rising regional demand for data storage and cloud-computing services. Officials say Cairo is preparing a comprehensive national strategy for data centres and cloud infrastructure aimed at enhancing digital sovereignty and reinforcing Egypt’s position as a regional gateway for data traffic and digital services.
Speaking at the signing ceremony, Minister Raafat Hindi said the new licence reflects the government’s commitment to supporting data-centre and cloud-computing industries as key pillars of the digital economy. He added that Egypt is working to provide an attractive regulatory and investment environment capable of drawing both domestic and foreign investment into the sector.
The minister noted that Egypt’s geographic location, extensive telecommunications network and international connectivity infrastructure provide a strong foundation for developing a regional data-services industry. He added that regulatory reforms remain central to the government’s efforts to align the sector with global standards and meet the requirements of local, regional and international markets.
For its part, the NTRA said it continues to update regulatory frameworks governing data centres and cloud services to ensure efficiency, security and reliability while encouraging innovation and investment. The regulator noted that increasing demand for digital infrastructure services has driven the expansion of the licensing programme.
Mohamed Magdy Allam, Managing Director of Hassan Allam Digital Infrastructure, described the licence as a strategic milestone that will enable the company to respond to growing demand for cloud services, artificial intelligence applications and data-driven technologies. He said the project is being developed through a partnership with venture capital and technology investment platform A15, combining Hassan Allam’s infrastructure expertise with A15’s operational and digital capabilities.
The investment comes amid a surge in regional demand for data-centre capacity, fuelled by the rapid adoption of cloud computing, artificial intelligence, fintech services and digital-government platforms. Governments across the Middle East and Africa are increasingly investing in local data infrastructure to strengthen cybersecurity, improve digital resilience and support growing data-localisation requirements.
According to the NTRA, Egypt has issued ten licences for the establishment and operation of data centres over the past two years, highlighting rising investor confidence in the country’s digital infrastructure market.
The latest project underscores Egypt’s ambition to move beyond connectivity and telecommunications services towards becoming a regional centre for cloud computing, artificial intelligence and advanced digital infrastructure, sectors increasingly viewed as critical drivers of economic growth and technological competitiveness.
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