Telecom Egypt’s board of directors resolved on July 15, 2026, not to move forward with a transaction that would have seen Helios Investments take up to an 80 percent stake in a subsidiary that would own the Regional Data Center Hub (RDH) in Cairo.
The telecommunications operator said in a press release that the agreement was canceled “due to the non-satisfaction of 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.” The company didn’t elaborate on which conditions weren’t satisfied.
Telecom Egypt says that with this deal off the table, it will carve out the assets and operations of its data center services into a subsidiary it will fully own. The as-yet-unnamed entity will include a specialized team that will develop this sector and expand operations to keep pace with the growing data center market globally and in Egypt.
The telco added that it intends to continue providing data center services and expand the scope of its operations in Egypt, “strengthening its position in this strategic sector and contributing to maximizing the added value of this vital asset.”
When the telco announced the deal in September 2025, it said that Helios Investments valued RDH at US$ 230 million with a potential value of up to US$ 260 million. That US$ 230 million to US$ 260 million was the valuation of RDH in full, on a debt-free, cash-free basis, but Helios was only ever buying 75 to 80 percent of it. Those are proceeds Telecom Egypt now won’t be booking though the firm says that the decision won’t have a financial impact on the company.
Telecom Egypt delivered the first phase of RDH, RDH 1, with an IT load of 2.5 MW in 2021 and reached full utilization in 2022. RDH 2 will deliver an IT load of approximately 4.6 MW and was slated for completion in 2025 but Telecom Egypt has not publicly confirmed the facility is fully operational.
Arizton Advisory and Intelligence notes that the colocation market in Egypt will top US$ 120 million in revenue by 2031 with around 254 MW of new power capacity forecast to be added between 2026 and 2031. With the Helios Investments deal canceled, Telecom Egypt looks set to capitalize on that growth and establish itself as a core part of the country’s data center fabric.