Telecom Egypt Sells Data Hub Stake to Helios
Telecom Egypt has moved to unlock value from its infrastructure assets by approving a binding offer from Helios Investment Partners for its Regional Data Hub (RDH) campus in Cairo.
The US$230 million transaction will see Helios acquire a controlling stake in the facility, positioning the investment firm to drive growth in one of North Africa’s largest colocation projects.
Deal structure and valuation
Under the agreement, Helios will acquire between 75% and 80% of a newly established subsidiary that will hold Telecom Egypt’s RDH assets. Telecom Egypt will retain a minority holding of 20–25% in the joint venture.
The binding offer values the RDH business at US$230 million, with the total amount potentially increasing to US$260 million by achieving performance-related targets.
EFG Hermes is serving as the exclusive M&A advisor, while ADSERO-Ragy Soliman & Partners and A&O Shearman have provided legal support.
Helios builds on African digital investments
Founded in 2004 and headquartered in London, Helios Investment Partners has focused heavily on African infrastructure. Its portfolio stretches across telecommunications and connectivity, with prior investments in Afsat Communications, Helios Towers and majority stakes in regional data centre businesses such as Maroc Datacenter in Morocco and IXAfrica in Kenya.
Helios has demonstrated an alignment with government strategies across the continent, having sold its 60% holding in Telkom Kenya to the state in 2022. The entry into Egypt represents a continuation of this investment thesis.
Inside Cairo’s regional data hub
RDH was first announced in 2020 as a multi-phase colocation campus designed to strengthen Egypt’s regional digital capabilities. The first phase, launched in 2021, delivered an IT load of 2.5MW and reached full utilisation within twelve months. A second phase, RDH2, is currently under construction and will add 4.6MW of capacity.
At full development, the campus will comprise four interconnected buildings capable of accommodating around 4,000 racks. With its scale, RDH has been widely regarded as one of Egypt’s most ambitious data centre initiatives.
The project aligns with Telecom Egypt’s strategy of building resilient digital infrastructure while capturing foreign investment through partnerships
Supporting Egypt’s digital expansion
Telecom Egypt already operates six other commercial data centres in Greater Cairo and Alexandria. Its RDH campus is positioned as a flagship development within the national ambition to expand digital infrastructure, as regional demand for cloud and AI-related services accelerates.
The entry of Helios with financial and operational support is expected to enhance RDH’s capacity to meet the surge.
The transaction underlines Egypt’s role as a continental crossroads for data connectivity, with appeal to hyperscalers and enterprise users seeking hosting closer to African and Middle Eastern end-markets. Market outlook
The proposed transaction ranks among the most notable data centre divestments in North Africa in recent years, highlighting the rising attractiveness of Egypt as a digital investment destination.
For Telecom Egypt, the sale allows the operator to monetise a strategic asset while retaining exposure through a significant minority stake.
For Helios, the deal represents a long-term platform to capture enterprise colocation demand and enhance Cairo’s standing as an interconnection hub bridging Africa, Europe and the Middle East.