Telecom Egypt: (Buy target price EGP166/share) Data Centers and Regional Expansion Create New Growth Drivers
Vodafone Egypt, in partnership with Elsewedy Electric and Kasava Technologies, announced a major project to establish a data center in Egypt, with targeted investments of up to USD 1.1 billion over three years and plans to scale capacity to 200 MW.
The project is more than just an expansion of Egypt’s data center capacity. It reflects the accelerating shift toward cloud computing, artificial intelligence, and digital infrastructure, further strengthening Egypt’s position as a regional hub for digital services and data centers.
*The project is particularly relevant to Telecom Egypt through two key channels:
1. Indirect benefit through its stake in Vodafone Egypt
Telecom Egypt owns a 45% stake in Vodafone Egypt. Therefore, Vodafone Egypt’s expansion into data centers, digital infrastructure, and cloud services could support the long-term growth in the value of Telecom Egypt’s investment in Vodafone.
2. Strengthening Telecom Egypt’s role in digital infrastructure
The broader opportunity lies in the increasing demand for international connectivity, bandwidth, data center connectivity, and cloud infrastructure driven by the expansion of data centers and AI applications.
Telecom Egypt has a strategic advantage in this area, given its leading role in international telecommunications infrastructure and submarine cable connectivity , linking Egypt to global markets.
Therefore, the expansion of data centers in Egypt could create not only growth opportunities for the data center market, but also additional demand for Telecom Egypt’s underlying digital and international connectivity infrastructure.
Walaa Mosalam
WMosalam@egy.primegroup.org