Egypt Plans $1 Billion AI Data Center with Nvidia Partnership

By the Editorial Team · Thursday, September 10, 2026

Egypt plans to build its first large-scale AI data center with a $1 billion investment and Nvidia technology, starting with a 20-megawatt facility developed through partnerships with Vodafone Business, Elsewedy Electric, and Cassava Technologies. This project highlights Egypt's push to become a regional AI hub amid U.S.-China competition for influence, despite challenges posed by the country's energy constraints.

Egypt has announced plans to construct its first large-scale artificial intelligence data center, a $1 billion project expected to have a capacity of 200 megawatts, utilizing technology from Nvidia. The initiative was unveiled on Wednesday by Raafat Hindi, Egypt’s Minister of Communications and Information Technology, as the United States and China intensify their efforts to expand influence in the Middle East and Africa by securing footholds in the AI sector.

The initial phase of the project will involve building a smaller, 20-megawatt facility with a value of approximately $200 million. This phase is scheduled to take place over three years and will be carried out through a partnership involving Vodafone Business, Elsewedy Electric, and Cassava Technologies, a prominent Nvidia partner in Africa. The data center will "leverage Nvidia accelerated computing technologies," according to Cassava Technologies representatives. Nvidia’s graphics processing units (GPUs) are widely used globally in AI model training, fueling much of the current AI expansion.

This announcement follows recent developments in the region surrounding AI infrastructure investments. During Chinese President Xi Jinping’s visit to Egypt last week—his first in a decade—reports surfaced that Huawei had proposed building a data center in Egypt. This prompted Washington to offer a competing bid involving leading American tech firms Nvidia, AMD, and Microsoft. Although Egypt’s President Abdel Fattah Al-Sisi and Xi agreed to deepen cooperation on AI and technology, they did not finalize any binding agreements during the visit.

A day after Xi’s departure, Minister Hindi met with representatives from an unspecified U.S. consortium of data center developers, as reported by Egyptian state media. The government expressed strong interest in attracting international partnerships to develop Egypt as a regional hub for data center operations.

Despite Egypt’s ambitions, the expansion of AI infrastructure in Africa faces challenges, including the region’s generally weak electricity grids. AI data centers require significantly more power than traditional data centers—up to five times as much—posing a substantial hurdle. Egypt, currently the most populous Arab country and the continent’s second-largest economy, has experienced persistent energy deficits, complicating efforts to support such energy-intensive projects.

Nevertheless, the Egyptian government appears determined to develop its digital infrastructure and capitalize on its strategic geographic and economic position to become a key player in AI technology within the Middle East and Africa.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.