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Key Points
- Raya Holding and Africa50 invested $25 million to develop a Tier III data center in Egypt.
- The facility will boost Egypt’s digital transformation and support cloud computing services.
- Raya Data Center’s valuation surpasses $137.5 million (EGP 2.2 billion) following the investment.
Raya Holding for Financial Investments has secured a combined $25 million to develop a state-of-the-art Tier III data center in Egypt, aiming to position the country as a regional leader in technology infrastructure. The investment is led by Africa50, a prominent pan-African infrastructure investor, with $15 million, while Raya Information Technology, a subsidiary of Raya Holding, contributes an additional $10 million.
Raya Holding targets Egypt’s tech hub status with new tier III data center
This joint venture seeks to meet the growing demand for advanced cloud computing and digital infrastructure in Egypt and across North Africa. The Tier III facility will incorporate eco-friendly, energy-efficient practices, aligning with the United Nations Sustainable Development Goals (SDGs). Construction is set to begin in early 2025, with the data center projected to become one of the most advanced Tier III-certified facilities in Egypt.
The new center will offer enhanced security, scalability, and reliable cloud infrastructure, supporting Egypt’s push for digital transformation. With this investment, Raya Data Center’s market valuation has surpassed $137.5 million (EGP 2.2 billion), further solidifying its role as a key player in Africa's data services sector. The project is expected to attract global hyperscale cloud providers and support Egypt’s expanding startup and SME ecosystem.
Ahmed Khalil, CEO of Raya Holding, commented on the strategic significance of the partnership, stating:
“We are happy to announce this strategic partnership with Africa50, which highlights investor confidence in Raya Holding’s vision and technological capabilities. This collaboration marks a key milestone in advancing Egypt’s digital infrastructure and establishing the country as a regional technology hub.”
Raya Holding’s venture into the Tier III data center space reflects its broader strategy to accelerate Egypt's technological growth while catering to international players seeking reliable cloud services.
Africa50 partnership strengthens Raya Holding’s expansion strategy
The $25 million investment is a crucial element of Raya Holding's broader efforts to diversify its portfolio and attract global investors. Africa50, which has investments in 32 African countries and support from development finance institutions such as the African Development Bank (AfDB), is poised to make a transformative impact on Egypt's digital infrastructure.
Raza Hasnani, Managing Director at Africa50, emphasized the importance of the project, stating:
“We are delighted to enter one of Africa’s largest data center markets alongside a proven operator such as Raya Data Center. This investment is a critical step in expanding our pan-African data center portfolio.”
Founded in 1999, Raya Holding has grown into a major player in Egypt’s technology, finance, and business process outsourcing (BPO) sectors. The company is listed on the Egyptian Exchange (EGX) and is a prominent player in the Middle East and North Africa (MENA) region. Raya operates through multiple subsidiaries, including Raya Information Technology, Raya Data Center, and Raya Foods, each contributing to the company’s diversified revenue streams.
This new development follows a successful $40 million funding round for Raya Foods in partnership with Helios Investment Partners, positioning the company for further growth. Raya Holding is also building on recent moves like Raya Information Technology’s $24.7 million deal with Suez Canal Bank to fuel its expansion and digital growth.
The new data center will attract international hyperscale customers from North Africa, the Middle East, and Europe, providing a significant boost to Egypt’s ambition to become a leading digital hub. With its cutting-edge infrastructure and strategic backing, Raya Data Center is poised to reshape Egypt’s digital landscape and meet the growing demand for cloud storage, security, and data services in the region.
