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Helios Investment Partners has taken a significant step toward expanding its digital infrastructure footprint in North Africa after Telecom Egypt’s board gave initial approval to the firm’s proposal to purchase a majority interest in its data center business.
Under the agreement in principle, Helios would acquire between 75% and 80% of a new subsidiary that will house Telecom Egypt’s Regional Data Hub (RDH).
The deal values the RDH at $230 million, with a potential rise to $260 million if certain performance benchmarks are met.
Completion is still subject to restructuring, the signing of final contracts, and the fulfillment of regulatory and corporate conditions.
The Regional Data Hub is a multi-phase campus in the Egyptian capital. Its first phase, rolled out in 2021, delivered 2.5 MW of IT capacity and quickly reached full occupancy, earning multiple Tier III certifications from the Uptime Institute.
A second facility, RDH2, is expected to provide around 4.6 MW. It already holds a Tier III design certification as of late 2024 and is enrolled in the LEED sustainability program, underscoring Egypt’s growing role in green digital infrastructure.
Egypt’s data center market has been expanding rapidly thanks to its strategic location, undersea cable connectivity, and rising demand for cloud services.
According to industry analysts, the country is positioning itself as a regional hub, serving not just local enterprises but also international players seeking a Middle Eastern and African gateway.
Founded in 2004, Helios Investment Partners is the largest Africa-focused private equity firm, with offices in London, Paris, Lagos, and Nairobi.
The firm has a track record of building and scaling infrastructure ventures across the continent, ranging from telecoms to fintech platforms.
It also became the first Africa-focused investment firm to achieve B Corp certification, reflecting its commitment to sustainable business practices.
For Helios, the Egypt deal builds on two decades of investment in digital connectivity.
The firm sees data centers as critical enablers of Africa’s digital economy, providing the backbone for cloud computing, AI adoption, and regional e-commerce growth.
Telecom Egypt, the country’s oldest and largest telecommunications operator, is consolidating its infrastructure offerings as part of a long-term digital transformation strategy.
With over 170 years of heritage, the state-owned operator provides services ranging from mobile voice and broadband to advanced enterprise solutions.
It also owns a 45% stake in Vodafone Egypt, further cementing its dominant market position.
Analysts note that divesting a controlling interest in the RDH allows Telecom Egypt to free up capital while retaining a role in the fast-growing data services segment.
The partnership with Helios could also accelerate the scaling of Egypt’s data center capacity at a time when global cloud providers are eyeing the region.
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