5 November 2024, Tue |
2:42 PM
Khazna Data Centers (Khazna), the largest network of hyper-scale data centers in the Middle East and North Africa region, today announced its plan to enter Egypt market with Benya Group, the leading integrated solution, digital transformation, and ICT infrastructure provider in Egypt and the MEA region. The new USD 250M state-of-the-art data center will be Egypt’s first hyper-scale data center and will be built at the Maadi Technology Park, Egypt’s first specialized investment zone.
With an expected capacity of 25 MW of IT load, the data center will unlock opportunities for businesses in Egypt aiming to expand internationally, and targeting multinational corporations who are pursuing growth and innovation in the Middle East and North African markets. Egypt has recently undertaken a series of investments, digital government services reforms, and infrastructure upgrades to enhance the contribution of the Information and Communications Technology (ICT) sector to the country’s economic growth. The inauguration of this data center will further address the need for a future-ready digital infrastructure in Egypt where data demands have risen significantly in recent years. This will also support Khazna’s growth strategy into international markets, reinforcing its commitment to expand operations beyond the UAE.
Following the term sheet agreement between Khazna Data Centers and Benya Group to establish a joint venture to build Egypt’s first hyper-scale data center, a memorandum of understanding (MoU) was signed by Eng. Ahmed Mekky, Chairman and CEO of Benya Group; Hassan Al Naqbi, the CEO of Khazna Data Centers; and Eng. Amr Aboualam, Chairman of Maadi Technology Park to secure land at Maadi Technology Park for the new data center. The signing ceremony was attended by Hossam Heiba, President, General Authority for Investment and Free Zones (GAFI) and Ambassador of the United Arab Emirates to Egypt H.E. Mariam Khalifa Juma Mohammed Alkaabi, who have previously discussed opportunities to attract Emirati investments to the Egyptian ICT sector and enhance cooperation between Egypt and the UAE in ICT fields.
“We are thrilled to announce our partnership with Khazna, which will enable us to enter the hyper-scale data center construction sector with full force. This MoU we signed represents a significant step towards strengthening our role in establishing this type of data centers in Egypt, with the support of our partner, Khazna Data Centers, which has an excellent reputation and outstanding expertise in this sector,” said Ahmed Mekky, Chairman and CEO of Benya Group. “The new hyper-scale data center will not only meet the needs of the Egyptian market but also, through its extensive capabilities, serve African and Middle Eastern countries. It will contribute to attracting more investments for business sectors involving intensive operations, supporting cloud computing and content system operators. In addition, it will encourage major commercial companies to join these giant digital clusters that rely on the latest cloud computing applications, digital technology, and big data. This MoU is also in line with the group’s policy to enhance Egypt’s digital infrastructure and support the government’s plans to increase foreign investments, as well as support the Ministry of Communications and Information Technology’s policy for digital transformation.”
Hassan Alnaqbi, Chief Executive Officer of Khazna Data Centers stated: “Khazna Data Centers has played a pivotal role in the UAE’s digital transformation. This collaboration with Benya Group marks a significant milestone in the expansion of Khazna’s regional presence. We are confident that our expertise and track record in delivering high-quality hyper-scale data centers combined with Benya’s local knowledge and experience, will enable us to provide customers with the best-in-class data center services in the region transforming Egypt into a vital hub for data storage supporting the growth of its digital economy.”
Amr Aboualam, Chairman of Maadi Technology Park said: “The Maadi Technology Park (MTP) is a strategic location for establishing telecommunications and information technology companies in Egypt. It offers a range of advantages, such as tax incentives, modern infrastructure, and proximity to various business centers in Greater Cairo. Additionally, the MTP promotes a culture of innovation and collaboration among companies operating in the area, including local and international companies in various sectors of outsourcing, IT, and communications. These companies benefit from the supportive environment provided by the Ministry of CIT for business development in the region and attracting investments in promising technology industries, such as data centers and cloud computing.”
Hossam Heiba, President, General Authority for Investment and Free Zones (GAFI) said: “This great project comes in line with Egypt’s plan to localize information technology and data centers, especially given the significant development witnessed by the technological infrastructure sector in Egypt.”
The planned data center marks the first in a series of hyper-scale data centers that the Benya Group and Khazna Data Centers collaboration plan to introduce to the Egyptian market in the future, aiming to leverage Egypt’s strategic location. The construction of the new data center is expected to commence later this year, with completion targeted for within the coming three years.
