Egyptian conglomerate Intro Group plans to invest $270 million in the first phase of the Kemet Data Center project in the Suez Canal Economic Zone.

The 80MW facility will span 80,000 sqm (860,000 sq ft) and will be developed in two phases. It is expected to be partially powered by solar energy.

Last week, Minister of Communications and Information Technology Raafat Hendy met with Intro Group’s board member Sherif Mohamed Abdel Fattah to discuss the project.

They reviewed designs completed to date and the contracts Intro Group has signed with suppliers for the equipment and systems needed for the project.

The meeting also covered the implementation timeline and the planned launch of the Kemet Data Center’s services.

In 2024, Intro Technology signed a Memorandum of Understanding (MoU) with data center provider Oman Data Park to develop the Kemet Data Center, valued at $450m at the time.

During last week’s meeting, Hendy stressed his ministry’s commitment to creating an “investment-friendly environment” to encourage the private sector to develop data centers, the Ministry of Communications and Information Technology (MCIT) said.

The minister also highlighted MCIT’s ongoing efforts to encourage companies to invest in developing data centers in Egypt and strengthen the country’s position as a regional data center hub.

Last month, Hendy met with a group of US data center developers and a delegation led by the newly launched firm Heca Data to discuss plans to establish an integrated zone for hyperscale facilities and AI in Egypt.

The government has also approved a $400m data center license to the new digital arm of construction group Hassan Allam to operate data centers and provide cloud computing services.

Egypt’s national strategy for data centers and cloud computing aims to establish the country as a main digital and subsea cable hub bridging Africa, the Middle East, and Europe.

The strategy is linked to Egypt’s Digital Vision plan to modernise the country through digital transformation and skills.

Learn more about the data center market in Saudi Arabia and the wider MENA region and meet with other executives and experts in the region at the DCN Riyadh event next year.