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Egypt advances national strategy to attract data center and cloud investment
At a glance
- •Three Egyptian ministries are coordinating a national strategy to attract data center and cloud investment.
- •The strategy will integrate digital infrastructure, electricity supply, investment incentives and regulatory facilitations.
- •An investment map of proposed data center locations will be prepared and reviewed by technical experts before international promotion by GAFI.
- •Egypt aims to increase renewable energy to 45% of the power mix within two years to support data center energy needs.
- •Long-term electricity arrangements will be available to secure power for large-scale data centre projects.
- •Officials will leverage Egypts submarine cable network and geographic location to market fast connectivity to global markets.
- •A joint working group will finalise the strategy, follow implementation, and coordinate investor engagement through overseas commercial offices.
Egypts push to become a regional data hub
Egypts ministries of Electricity and Renewable Energy, Communications and Information Technology, and Investment and Foreign Trade have moved forward on an integrated national strategy for data centers and cloud computing aimed at attracting international investment and developing a local industry, the ministries said in a joint statement.
A meeting on the executive steps for the plan was attended by Electricity and Renewable Energy Minister Mahmoud Esmat, Communications and Information Technology Minister Raafat Hindy, and Investment and Foreign Trade Minister Mohamed Farid, together with officials from the three ministries and industry representatives. The discussions focused on a unified national framework that would identify potential data center locations, map renewable energy resources, outline investment incentives and assess infrastructure readiness and procedural facilitations for investors.
The ministers said the strategy will bundle digital infrastructure, reliable electricity supply, investment incentives and regulatory facilitations to meet the technical and operational needs of global technology and cloud providers. They agreed to coordinate regulatory and permitting mechanisms to accelerate establishment of data centers and cloud computing facilities across the country.
Site selection will be a central element of the strategy. Officials reviewed proposals to identify suitable locations for large-scale projects based on electricity availability, renewable energy access, communications infrastructure and connectivity services. The ministers also agreed to prepare a national investment map detailing proposed sites, infrastructure and connectivity, incentives, estimated costs and government contact points. Technical experts will review the map before it is published by the General Authority for Investment and Free Zones (GAFI) and promoted internationally.
Energy planning is a core pillar of the initiative. Minister Esmat said the electricity ministry is implementing measures to support localisation of the data center industry within Egypts broader energy strategy, which aims to raise the share of renewable energy in the generation mix to 45% within the next two years. He added the ministry is prepared to secure the electricity needed for large data center projects through long-term arrangements with investors and noted the growing energy demands of artificial intelligence applications, which require substantial computing capacity and power.
Minister Hindy emphasised that advanced digital infrastructure and connectivity underpin the countrys ability to attract data center investment. He described the sector as vital for Egypts digital economy and its digital sovereignty efforts, and highlighted Egypts international submarine cable network and strategic geographic position as competitive advantages for providing fast connectivity between global markets. The communications ministry is working to support localisation of the data center industry and to expand exports of digital services.
Minister Farid underscored the importance of supplying investors with comprehensive, transparent information on potential project sites, infrastructure, energy sources, incentives and investment procedures to facilitate decision-making and draw major global companies. He said Egypts commercial representation offices abroad and GAFIs investment promotion teams will undertake targeted promotion and meetings with international technology firms to present the countrys opportunities.
To ensure continuity and follow-through, the three ministries agreed to form a joint working group to finalise the national strategy for data centers and cloud computing, oversee implementation, and coordinate with Egyptian commercial offices overseas to respond to investor inquiries and support industry localisation. The coordinated approach aims to present Egypt as a competitive and reliable hub for cloud and data center investment in the region.
