Egypt has begun formal work on a national data center strategy, signaling the government’s intent to turn the sector into a pillar of the country’s digital economy and tie its growth directly to the expansion of reliable, renewable power supply.
The initiative was unveiled following a high-level meeting chaired by Prime Minister Mostafa Madbouly, who convened the Ministers of Electricity, Finance, Housing, and Communications, together with senior officials from the National Telecommunications Regulatory Authority. According to a statement from the Prime Minister’s Office, the meeting responded to direct presidential directives calling for a unified, cross-ministerial roadmap.
“There are presidential directives to develop a clear, unified strategy for data centers, with all relevant ministries involved, given their critical role today,” Madbouly said.
Power as the Foundation
Madbouly stressed that the trajectory of the sector will rest on one decisive factor: electricity. Data centers are among the most energy-intensive facilities in any modern economy, and Egypt intends to anchor its expansion in renewable generation rather than place added strain on the conventional grid.
The Ministry of Electricity has already mapped renewable energy sites considered suitable for hosting large-scale facilities, and a comprehensive regulatory and operational framework for the industry is under active study.
A Regional Digital Hub
Communications Minister Raafat Hindi laid out a broader vision: positioning Egypt as a regional, and eventually global, hub for data traffic and digital services. The country’s geography (straddling Africa, Asia, and Europe) combined with its dense network of submarine cables along the Mediterranean and Red Sea coasts, gives it a natural advantage few markets in the region can match.
Hindi outlined several strategic priorities, including attracting investment in large-scale cloud and artificial intelligence facilities, reinforcing digital sovereignty, localizing data storage and processing, and expanding the export of digital services to regional markets.
Sites, Models, and Next Steps
Electricity Minister Mahmoud Esmat presented proposed locations alongside potential contracting models for investors, while Housing Minister Randa Al-Menshawy confirmed that several sites within Egypt’s new cities have already been earmarked for development.
A dedicated committee, chaired by the Prime Minister, will now be formed to finalize the strategy in line with presidential directives. Officials indicated that multiple investors have already expressed interest in launching data center projects in Egypt, suggesting that early implementation steps could follow once the framework is in place.