Farid discusses Sinai hydrogen project, $1B hyperscale data center with Renergy alliance
Updated 3/18/2026 8:49:00 AM
Arab Finance: Egypt’s Minister of Investment and Foreign Trade Mohamed Farid Saleh met with representatives of the Renergy Group alliance to discuss progress on a large-scale green energy project in Sinai and a proposed hyperscale data center backed by investments of around $1 billion, as per a statement.
The meeting brought together Renergy Egypt CEO Robert Valk as part of Egypt’s broader strategy to position itself as a regional hub for clean energy and digital innovation.
Farid said the government is opening investment opportunities for projects that combine clean energy with advanced technology, adding that Egypt supports strategic investments that deliver high added value while advancing environmental sustainability.
He noted that the Ministry is working to remove obstacles facing major investments and foster partnerships that integrate Egypt into global supply chains for clean energy and green data.
Discussions focused on the implementation of a major green energy project in El-Tor, Sinai, which will combine green hydrogen production, solar power, and energy storage systems.
The project spans around 127 square kilometers, with a 4-kilometer frontage on the Red Sea, and aims to produce 400,000 tons of liquid green hydrogen annually, all designated for export to European markets.
Farid reviewed the outcomes of technical studies conducted by Renergy Group over two years for €5 million, which confirmed the suitability of the site’s soil for constructing secure water reservoirs required for energy generation.
According to the consortium, the project will be developed in two phases, with the first phase targeting an export capacity of 160,000 tons annually, followed by a second phase reaching full production capacity of 400,000 tons.
In parallel, the alliance presented a proposal to establish a hyperscale data center powered by the project’s green energy output.
The facility is expected to start with an area of 10,000 square meters and expand to up to 500,000 square meters, positioning it among the largest data centers in the region.
The proposed center would leverage Egypt’s strategic location and its direct connection to submarine cables, while using seawater cooling to enhance efficiency.
Hyperscale data centers are designed to support massive computing needs, enabling cloud services and large-scale data storage for global technology companies, and typically require significant energy capacity.
Farid requested that the consortium submit a comprehensive proposal including feasibility studies, technical specifications, financing structures, and partner details.
He stressed the need for coordination with the Ministries of Communications and Electricity, the National Authority for the Development of the Sinai Peninsula, and relevant security bodies to ensure compliance with national security and technical standards.
He added that Egypt is pursuing a comprehensive vision to become a global logistics and industrial hub, emphasizing that the goal is not only to attract investment but also to build long-term strategic partnerships that strengthen its role in global clean energy and data ecosystems.
Related News
