Data Centres & Networks

Telecom Egypt scraps deal to sell stake in data centre unit to Helios

Telecom Egypt scraps deal to sell stake in data centre unit to Helios

Telecom Egypt announced on Thursday it has scrapped a deal to sell a majority stake in its Regional Data Center Hub (RDH) to Helios Investment Partners, opting instead to carve out RDH as a wholly-owned subsidiary.

Telecom Egypt first announced the deal in September 2025, in which Helios agreed to acquire between 75% and 80% of a new carved-out subsidiary holding the RDH assets, with Telecom Egypt owning the remainder. The deal was valued at US$230 million.

However, on Wednesday, Telecom Egypt’s Board of Directors voted not to proceed with the transaction because it felt Helios had not met certain terms stipulated in the executed term sheet, including “conditions related to third parties, which are necessary for the completion and proper compliance of the transaction.”

Telecom Egypt said in a statement it still intends to carve out the assets and operations of RDH into a wholly owned subsidiary fully focused on data centre services, as well as expand its operations and accelerate data centre market growth.

“This direction stems from the Company's conviction that the global data centre sector is among the fastest-growing sectors, while the Egyptian market is witnessing rising demand – a dynamic that requires a specialized operating model to keep pace and maximize the benefits,” the telco statement said.

Telecom Egypt also said the decision to scrap the Helios deal won’t impact its finances or operations.

The telco’s RDH campus launched in 2021 with an IT load capacity of 2.5MW. In 2023, Telecom Egypt contracted Raya Information Technology to implement the second phase that will increase RDH’s capacity to 7.1MW. Two additional phases will expand its capacity further to 16.3MW.



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