Hassan Allam commits $400 million to Egypt data centre project

Hassan Allam Digital Infrastructure and Data Centre Solutions has signed a licensing agreement with Egypt's National Telecommunications Regulatory Authority to establish and operate data centres with an initial investment of $400 million, in what the country's communications ministry described as a milestone in Egypt's ambition to become a regional digital infrastructure hub.

The agreement was signed in the presence of Communications and Information Technology Minister Raafat Hindy and senior officials from both the public and private sector. Mohamed Magdy Allam, Managing Director of Hassan Allam Digital Infrastructure, confirmed the company will build data centres to the highest international standards and plans to expand investment in the coming years to meet growing regional demand.

The facility will target government institutions, the financial sector and local and international companies seeking cloud computing, artificial intelligence infrastructure and digital services. Hassan Allam Digital plans to leverage a strategic partnership with A15, a regional venture capital and technology fund, to build a platform capable of meeting future digital needs.

Egypt currently hosts only 14 data centres, representing just 5.5 percent of the region's total. The new Hassan Allam facility is expected to allow Egypt to retain more data within its borders, cut processing latency and make financial transactions, AI processing and cloud services more reliable for both domestic and international users.

Minister Hindy said the licence reflects the government's interest in developing the data centre and cloud computing industry as a sector vital to Egypt's digital economy. He noted that Egypt's geographic location, extensive telecommunications network and international connectivity infrastructure provide a foundation for a regional data services industry.

The NTRA said it has been updating regulatory frameworks governing data centres and cloud services to ensure efficiency, security and reliability while encouraging innovation and investment. Increasing demand for digital infrastructure services has driven the expansion of its licensing programme.

Hassan Allam Holding, the parent company, is one of Egypt's largest diversified construction and infrastructure groups. The company's chief executive, Eng. Hassan Allam, has been among Egypt's most prominent industrialists for more than three decades, with the group operating across construction, utilities, digital infrastructure and real estate. In December 2025, Hassan Allam Construction was awarded a $250 million contract to build the African Export-Import Bank's African Trade Centre in Egypt's New Administrative Capital. In January 2026, the group secured a $25 million facility from the European Bank for Reconstruction and Development to modernise its operations.

The $400 million data centre investment is the group's most significant digital infrastructure commitment to date and positions Hassan Allam as a central player in Egypt's effort to attract hyperscaler and enterprise cloud computing investment that has historically concentrated in the UAE, Saudi Arabia and South Africa within the Middle East and Africa region.