Egypt signs MoU to assess power needs for data center project

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Thu, 25 Jun 2026 - 02:22 GMT

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Thu, 25 Jun 2026 - 02:22 GMT

CAIRO – 25 June 2026:  Egypt is taking further steps to support the development of its data center industry, with the Egyptian Electricity Transmission Company (EETC) signing a memorandum of understanding with Heca Data to assess the electricity requirements of a planned data center project.

The agreement was witnessed by Mahmoud Esmat, Minister of Electricity and Renewable Energy, at the Ministry’s headquarters in the New Administrative Capital.

Under the MoU, the two parties will study the project’s expected electricity demand, connection requirements to the national grid, implementation phases and the possible technical options for supplying power to the facility.

The study will also assess the impact of the project’s electricity needs on the grid, identify any required reinforcement or expansion works, and examine the role renewable energy, battery storage and other supporting power solutions could play in meeting demand.

The agreement forms part of Egypt’s broader efforts to attract investment in data centers and establish a national strategy for the sector. The proposed framework aims to present investors with an integrated view of available locations, renewable energy resources, investment incentives and the readiness of electricity, telecommunications and IT infrastructure.

Esmat said the Ministry is working under presidential directives to support the localization of the data center industry and provide the electricity needed to power it.

He added that the project aligns with Egypt’s wider strategy to localize advanced technology and expand renewable energy generation, with renewables targeted to account for 45% of the country’s energy mix within the next two years.

The minister noted that data centers are becoming increasingly important to the growth of artificial intelligence, as AI applications require substantial computing capacity to process and generate rapidly expanding volumes of data.

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