{"id":710638,"date":"2026-06-16T00:00:00","date_gmt":"2026-06-16T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/?p=710638"},"modified":"2026-06-16T02:49:36","modified_gmt":"2026-06-16T02:49:36","slug":"hassan-allam-commits-usd-400-mn-to-new-data-center","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2026\/06\/16\/hassan-allam-commits-usd-400-mn-to-new-data-center\/","title":{"rendered":"Hassan Allam commits USD 400 mn to new data center"},"content":{"rendered":"

Good morning, friends.<\/strong> It\u2019s a capital flows and pipelines kind of morning as the EU puts up EUR 690 mn to upgrade our grid in a bid to integrate 22 GW of new renewables into our grid by 2030. <\/p>\n

Meanwhile, our privatization pipeline is thawing in earnest. <\/strong>Offers are in for Safi, an IPO timeline is set for Quick Fuel, and Elab is filing for a temporary EGX listing \u2014 three long-running plays moving at once, just as the IMF watches the benchmark.<\/p>\n

ALSO- <\/strong>ALCN is moving its 6.01% Egypt Maritime Ports stake up to its state-owned parent in a no-cash EGP 1.05 bn compensation swap.<\/p>\n

Last, but not least: <\/strong>Don\u2019t miss our deep dive into how outward FDI jumped 30% on the back of corporate heavyweights booking agreements across the GCC, Iraq, and North Africa.<\/p>\n

<\/a> IF YOU MISSED LAST<\/strong> NIGHT\u2019S MATCH- <\/strong>The Pharaohs secured a 1-1 draw against Belgium in their opening Group G match of the 2026 World Cup. Egypt opened the score in the first half, before being forced into an own goal. Egypt will face New Zealand next, with the showdown scheduled for Monday at 4am. <\/p>\n

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ARE YOU MORE OF A LISTENER?<\/a><\/strong>Morning Drive is a 10-minute summary<\/a> of today\u2019s issue crafted for you to enjoy with your morning coffee, while getting the kids ready for school, or driving through the morning rush. And if you like it, tell your friends to tell their friends. They can find us on <\/strong>Apple<\/a><\/strong>, <\/strong>Spotify<\/a><\/strong>, or wherever they get their podcasts.<\/strong><\/p>\n

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Data hub dreams<\/p>\n

<\/a> Our friends at <\/strong>Hassan Allam\u2019s<\/strong> digital infrastructure arm have<\/strong> committed USD 400 mn for the first phase of a new data center<\/strong> after securing a cloud-computing license from the National Telecom Regulatory Authority. Hassan Allam Digital Infrastructure and Data Center Solutions will execute a phased expansion plan for the facility, according to a statement<\/a>.<\/p>\n

Why it matters: <\/strong>Egypt wants to become a regional data-center hub, but it has some serious catching up to do. The country currently hosts only 14 facilities \u2014 representing just 5.5%<\/a> of the region\u2019s data centers, according to Data Center Map. Hassan Allam\u2019s new facility gives Egypt more room to keep data within our borders, cutting latency and making financial transactions, AI processing, and cloud services more reliable.<\/p>\n

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Fifth vessel incoming<\/p>\n

<\/a> The government is expected to contract for a fifth floating storage regasification unit (FSRU) ahead of the summer demand peak<\/strong>, two government officials tell EnterpriseAM. The vessel will join the four FSRUs<\/a> already deployed in the country \u2014 the Hoegh Galleon, Energos Power, Energos Eskimo, and Energos Winter \u2014 which currently provide c.2.7 bcf\/d of regasification capacity.<\/p>\n

Why it matters:<\/strong> We\u2019ve been buying huge volumes of liquified natural gas (LNG) since our domestic natural gas production plunged to an average of 3.87 bcf\/d<\/a> in 1Q 2026, compared to its peak of 6.13 bcf\/d in March 2021. Egypt needs more capacity to turn the LNG into usable gas \u2014 a fifth unit would up our capacity, deepen the import buffer, and keep the national grid from buckling.<\/p>\n

DATA POINT-<\/strong> Egypt has secured around <\/strong>75 LNG cargoes<\/strong> to cover natural gas needs through the end of the year<\/strong>, including 45 cargoes for the summer months, the officials say. Roughly 30 of the summer cargoes will be directed to power stations, the sources add.<\/p>\n

ALSO- The government could revise its oil price assumption in the FY 2026\/27 budget<\/strong> to USD 100-110 \/ bbl (from USD 75 \/ bbl in the draft sent to the House) if regional tensions continue, an official tells us. The figure could come in below USD 100 \/ bbl if the war ends, he adds, which now looks likely as the US and Iran recently reached a tentative ceasefire agreement. Every USD 10 \/ bbl increase in global energy prices widens Egypt\u2019s trade deficit by roughly USD 900 mn, putting pressure on a draft budget that Finance Minister Ahmed Kouchouk said was built around oil at USD 75 \/ bbl<\/a>.<\/p>\n

Egypt\u2019s total energy import bill is expected to hit USD 13.5 bn, up from prev<\/strong>ious estimates of USD 12 bn in FY 2026\/27<\/strong>, according to a government document seen by EnterpriseAM. From April through September of this year, crude import costs are expected to surge to USD 13.3 bn, up from an initial target of USD 10 bn.<\/p>\n

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Old friends, new pact <\/p>\n

The House of Representatives gave the final nod to a presidential decree ratifying the country\u2019s accession to the D-8 Pre<\/strong>ferential Trade Agreement and its dispute settlement protocol,<\/strong> according to a statement<\/a>. The block includes Turkey, Indonesia, Iran, Malaysia, Nigeria, Pakistan, Bangladesh, and Azerbaijan \u2014 the ninth member who joined last year<\/a>. <\/p>\n

Why it matters: <\/strong>The pact slashes tariffs and eliminates non-tariff barriers between the signatories. It also enforces a \u201cnational treatment\u201d clause \u2014 meaning goods imported from member states are treated equally to domestic products under commercial regulations \u2014 and scraps any hidden fees or levies acting as backdoor customs duties. This will help Egyptian exporters access markets of over 1 bn people, which should move the government closer to hitting its USD 100 bn<\/a> target in non-oil exports by 2030.<\/p>\n

The new agreement mandates a structured reduction of customs tariffs across three tiers:<\/strong><\/p>\n