Egypt EETC, Heca Data ink MoU for new data centre
The MoU covers cooperation on technical information related to the data centre project and a technical study of requirements and capacities needed to connect the project to the national electric grid.
It also includes studying the project's impact on the national grid.
Moreover, the MoU covers expected electrical loads, implementation phases, possible alternatives for electricity supply, other energy solutions, and reinforcement or expansion works.
It also explores the data centre’s reliance on renewable energy sources and storage batteries.
The memorandum aligns with Egypt’s national energy strategy and its plan to expand investments and localize the data centre industry.
It also comes as the government steps up efforts to upgrade the national electricity grid, according to Electricity Minister Mahmoud Esmat, who attended the signing ceremony.
Local and foreign firms have recently shown an increasing appetite to expand the establishment of data centres in Egypt.
In December, the EETC decided to enter into a partnership with the European Bank for Reconstruction and Development (EBRD) to upgrade the national grid, increase capacity, and integrate renewable energy.
Meanwhile, Egypt’s structural adjustments and infrastructure investments have positioned it as Africa's second-largest economy and a primary engine of continental growth.
The establishment of data centres in Egypt will attract global cloud providers, develop data-driven sectors, and serve the industrial sector in both local and neighbouring markets. It will also support the state's vision for Artificial Intelligence (AI) to account for 7.7 percent of the GDP by 2030.
Furthermore, Egypt aims to become a regional hub for data exchange and digital services while strengthening its digital sovereignty.
The country has already established its first hub in Ain Sokhna in April 2024 to store data for all ministries and is planning to build a total of three fully state-owned data centres.
These projects will expedite digital transformation and establish a data infrastructure that supports government operations, private-sector engagement, and cloud computing capabilities.
The data centre sector is expected to grow by 6.98 percent annually between 2025 and 2030, with total market revenue projected to reach nearly $739 billion by 2030.