State-owned operator Telecom Egypt has rejected reports on plans to turn its regional data center complex into a “cash-generating asset.”

Daily Egyptian newspaper Al-Mal reported on 30 March that Telecom Egypt was considering converting its regional data center complex into a “cash-generating asset” to support its expansion plans and grow its business in the local market.

It is unclear if "cash generating asset" meant plans to offer colocation space from the site in Cairo, or to sell the property.

But Telecom Egypt issued a release on the Egyptian Exchange the same day saying that “there are no new developments in this matter” and that it will publish any updates under its “commitment to transparency and disclosure principles.”

Telecom Egypt operates 11 data centers across seven Egyptian cities, including the country’s largest data center in West Cairo’s Smart Village.

The International Data Center has a capacity of around 4.6MW and 2,000 racks across four campus facilities. It has access to all the global submarine cable systems that land in Egypt.

The company is set to divest a majority stake in its Regional Data Hub (RDH) data center in Cairo to Helios, however. A deal was announced last year.

Egypt is a critical international hub for global communication networks connecting Africa, Asia, and Europe. 

The government is exploring ways to attract data center investment, including a plan for energy incentives and licensing, Fintech Gate has reported.

During a recent meeting, Minister of Electricity and Renewable Energy, Mahmoud Esmat, and Minister of Communications and Information Technology, Raafat Hindy, discussed steps to support and develop the data center industry and make the Egyptian market more attractive to international and local investors.

An agreement was recently reached to form a joint working group to develop a national strategy and support green data centers.

Hindy said that Egypt's strategic location, advanced fiber optic network infrastructure, and efficient connectivity give the country a competitive advantage to become a leading regional hub.

The government’s Digital Egypt and Vision 2030 strategies aim to transform the country into a digital society and a regional hub for data center investments.

As of 2025, Egypt was connected to 15 operational submarine cables with three more under construction. This connectivity, together with low-latency access to Europe and Asia, makes it a compelling location for global data flows.

Although major companies such as AWS or Azure don’t operate cloud regions in the country, regional player Emirati Khazna Data Centers partnered in 2023 with Benya Group to build Egypt's first hyperscale data center in Maadi Technology Park, Cairo.

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