Egypt launches $1bn data centre project, first sovereign AI facility

Egypt launched a strategic partnership between Vodafone Business, Elsewedy Electric, and Cassava Technologies to establish Africa Data Centres Egypt, one of the country’s largest data centres and its first sovereign AI data centre.

Egypt’s Communications and Information Technology Minister Raafat Hendy witnessed on Wednesday the signing and launch of the partnerships, which aim to strengthen Egypt’s digital infrastructure and expand its capacity to host and process data locally.

The project will initially add 20 megawatts (MW) of capacity over its first three years, with plans to scale up to 200 MW. Phase One is expected to attract around $200 million in foreign direct investment, while total investment is projected to reach $1 billion at full capacity.

The data centre is expected to create up to 200 direct jobs and around 2,000 indirect jobs, with Egyptian talent involved in its construction, operation, and management.

The partnership between Vodafone Business and Cassava Technologies will also establish Egypt’s first sovereign AI data centre, providing access to advanced computing capabilities, NVIDIA technologies, and GPU-as-a-Service (GPUaaS).

The facility will enable organisations to develop and operate AI applications while keeping data hosted and processed within Egypt, supporting data protection, cybersecurity, and regulatory compliance.

The strategy also includes investment incentives to attract local and foreign investors, alongside plans to update the regulatory framework for advanced data centres. It aims to improve operational efficiency, promote sustainability, accelerate digital transformation, and develop specialised Egyptian talent in data centre operations.

The partnerships are expected to strengthen Egypt’s position as a regional hub for data, cloud services, and artificial intelligence while supporting the growth of its digital economy.