Helios Investment Partners Moves to Acquire Majority Stake in Telecom Egypt’s Strategic Data Center
In a significant development for Africa’s burgeoning digital infrastructure landscape, Helios Investment Partners, a prominent investment fund, has put forth an offer to acquire a substantial share of Telecom Egypt’s subsidiary responsible for the Regional Data Hub (RDH). This strategic data center, located in Egypt’s capital, Cairo, is a critical component of the region’s digital backbone. Helios is seeking to secure between 75% and 80% ownership of this vital facility.
A Strategic Asset in Egypt’s Digital Future
The proposed acquisition values 100% of the Regional Data Hub at $230 million, with a potential increase to $260 million contingent on the achievement of specific performance benchmarks. Under the terms of the offer, Telecom Egypt would retain a significant minority stake, ranging from 20% to 25%, in the data center. The RDH, which commenced operations in 2021, initially provided 2.5 megawatts (MW) of IT capacity. This first phase proved immensely popular, reaching full saturation in under a year, underscoring the high demand for data processing and storage solutions in the region. To meet this escalating need, the second phase, dubbed RDH2, is currently under development and is projected to add approximately 4.6 MW of additional capacity. Looking ahead, the comprehensive plan for the Cairo facility envisions it eventually hosting close to 4,000 racks, spread across four dedicated buildings, cementing its role as a regional powerhouse for digital services and cloud infrastructure. Helios’s bid has already received preliminary endorsement from Telecom Egypt’s board of directors, though the finalization of the deal remains subject to further conditions.
This potential acquisition highlights the growing interest of private equity in Africa’s rapidly expanding digital economy. Investing in core infrastructure like the Regional Data Hub is pivotal for enhancing connectivity, supporting cloud services, and driving digital transformation across Egypt and wider Africa. The strategic location of the RDH in Cairo positions it as a gateway for data traffic, making it a highly attractive asset for investors focused on the continent’s digital future.
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