Egypt's Minister of Communications and Information Technology Raafat Hindy recently met with INTRO Investment Holding to discuss plans for a $1.2 billion Kemet data centre in the Sokhna Integrated Industrial Zone. The project aims to establish a Tier 3 data centre, a facility that can undergo maintenance and repairs without shutting down its operations. This will be the first of its kind in the Suez Canal Economic Zone (SCZone). The centre will provide cloud solutions, Internet of Things (IoT), and digital transformation services.
INTRO, a private conglomerate, plans for the data centre to reach a total capacity of 80 megawatts (MW), with $270 million in investments allocated to the first phase. The meeting covered creating more incentives to encourage companies and the private sector to invest in and establish more advanced data centres that meet global standards. This aligns with the communications ministry's plan to create an attractive business environment in Egypt.
The private sector is expected to contribute EGP 2.2 trillion, or 59 percent of total investments, out of the EGP 3.7 trillion projected for fiscal year 2026/2027 under the state budget. The government is also seeking to increase private-sector participation in the economy, aiming to raise its share of total investments to 64 percent over the next three years. Egypt has been expanding its data centre and cloud computing industries to strengthen the digital economy.
The global data-centre market is projected to reach $902.2 billion by 2033, up from $425.3 billion in 2026, at a compound annual growth rate of 11.3 percent. Egypt aims to become a regional data centre and a global data transfer and communications hub. In April 2024, the country inaugurated its first national data hub in Ain Sokhna, dedicated to storing data for all ministries, with plans to establish more state-owned centres.
The Kemet data centre project was initially announced in September 2024, when INTRO's technology subsidiary signed a memorandum of understanding with cloud service provider Oman Data Park to establish the centre with $450 million in investments. Oman Data Park is responsible for comprehensive commercial services, including overseeing the design and providing consultancy on the centre's construction. The data centre will be built over 80,000 square metres in two phases.
The centre plans to integrate sustainable technologies, including solar energy, to minimize its carbon footprint while delivering high-quality digital services. This comes as Egypt seeks to meet rising demand for data hosting and processing, accommodate local market needs, and facilitate service delivery to regional and international markets. Both sides reviewed the project's implementation steps, completed engineering designs, and equipment and infrastructure contracts finalized with suppliers.
The meeting between Hindy and INTRO Holding also discussed the timeline for the project's various phases and the launch of the centre's services. No specific details were disclosed. The project is expected to provide advanced, cost-effective cloud data capabilities, offering features such as scalability and faster data processing, to large companies.
Key points
- Egypt plans to establish a $1.2 billion Kemet data centre in the Sokhna Integrated Industrial Zone.
- The data centre aims to provide cloud solutions, Internet of Things (IoT), and digital transformation services.
- The project is part of Egypt's broader strategy to strengthen its digital economy and become a regional data centre and global data transfer and communications hub.
