Photo courtesy of Egypt's cabinet
The move aims to expand the country's digital infrastructure and support the growing demand for data, cloud, and technology services, according to the statement.
Hassan Allam Digital Infrastructure is the digital infrastructure and data centre arm of Hassan Allam Holding, an engineering, construction, and investment company. The project is based on a partnership between Hassan Allam and Egyptian technology and venture capital firm A15.
The licence aims to support Egypt's plans to expand its data centre and cloud computing industries, strengthen the digital economy, and create an attractive investment environment for local and foreign partners, according to Communications Minister Raafat Hindi.
Egypt has also been accelerating its digital transformation and enhancing public service delivery by establishing an integrated data infrastructure that supports government operations, private-sector participation, and cloud computing capabilities.
The project will combine Hassan Allam's expertise in developing and implementing infrastructure projects with A15's specialized digital and operational expertise, Hassan Allam Digital Infrastructure Managing Director Mohamed Magdy Allam said.
There are also plans for Hassan Allam to increase investments in upcoming years to meet growing demand for data hosting and cloud computing services for government institutions, the financial sector, and local and international firms.
Hindi said the ministry is currently preparing a national strategy for data centres and cloud computing and developing the ICT sector's regulatory and legislative framework in cooperation with several stakeholders.
The strategy aims to position Egypt as a regional hub for data exchange and digital services while strengthening its digital sovereignty. 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.
Egypt has also been encouraging companies to build artificial intelligence-enabled data centres to serve the industrial sector in both local and neighbouring markets, in line with its second national AI strategy.
The strategy aims to generate about $42.7 billion in AI-related economic value, with AI accounting for 7.7 percent of the GDP by 2030.
The NTRA has issued 10 licences for companies to establish and operate data centres over the past two years.
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