Arab Finance: The Ministries of Electricity and Renewable Energy, Communications and Information Technology, and Investment and Foreign Trade discussed the executive steps required to prepare Egypt's national strategy for data centers and cloud computing, as part of efforts to attract foreign investment and support the development of the sector, as per a statement.
The discussions took place during a meeting attended by Minister of Electricity and Renewable Energy Mahmoud Esmat, Minister of Communications and Information Technology Raafat Hindy, and Minister of Investment and Foreign Trade Mohamed Farid, along with officials from the three ministries and representatives of the data center sector.
The meeting comes in line with directives to develop a unified national framework covering potential data center locations, renewable energy resources, investment incentives, infrastructure readiness, and procedural facilitations aimed at attracting international technology companies to Egypt.
The ministers discussed mechanisms for coordinating efforts to regulate and establish data centers and cloud computing facilities, as well as preparing a national strategy and an investment promotion plan targeting international companies through Egypt's commercial representation offices abroad and the General Authority for Investment and Free Zones (GAFI).
According to the ministers, the strategy will integrate digital infrastructure, electricity supply, investment incentives, and regulatory facilitations to meet the technical and operational requirements of global technology and cloud computing companies.
The meeting also reviewed proposals for identifying suitable locations for large-scale data center projects, taking into account the availability of electricity, renewable energy sources, communications infrastructure, and connectivity services.
Esmat said the Ministry of Electricity is implementing a plan to support the localization of the data center industry within the framework of the state's energy strategy, which targets increasing the share of renewable energy in the electricity mix to 45% within the next two years.
He added that the ministry is prepared to provide the electricity required for such projects through long-term arrangements with investors and highlighted the growing role of data centers in supporting artificial intelligence applications, which require significant computing capacity and energy resources.
For his part, Hindy said advanced digital infrastructure remains a key factor in attracting data center investments, describing the sector as an important component of Egypt's digital economy and digital sovereignty efforts.
He added that the ministry is working to support the localization of the data center industry and expand exports of digital services, leveraging Egypt's international submarine cable network and strategic geographic location, which provide fast digital connectivity between global markets.
Farid stressed the importance of providing investors with comprehensive information on potential project locations, infrastructure availability, energy sources, incentives, and investment procedures to facilitate investment decisions and attract major international companies operating in the sector.
He added that Egypt's commercial representation offices and GAFI's investment promotion teams will conduct targeted promotional activities and meetings with global technology companies to present investment opportunities in the country.
The ministers also agreed to prepare an investment map covering proposed data center locations nationwide, including details on infrastructure, connectivity services, investment incentives, estimated costs, and contact points at relevant government entities. The map will be reviewed by technical experts before being published through GAFI and promoted internationally.
At the conclusion of the meeting, the three ministries agreed to establish a joint working group to finalize the national strategy for data centers and cloud computing, follow up on implementation, and coordinate with Egypt's commercial representation offices abroad to respond to inquiries from international investors and support the localization of the data center industry in Egypt.
