The Egyptian government has initiated high-level talks with the Renergy Group alliance to develop a massive integrated technology and energy project in South Sinai. Minister of Investment and Foreign Trade Mohamed Farid Saleh recently met with consortium representatives, including Renergy Egypt CEO Robert Valk, to discuss proposals for a $1 billion hyperscale data center and a parallel green hydrogen production facility.
Quick Facts
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$1 billion hyperscale data center planned for South Sinai.
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Green hydrogen facility to produce 400,000 tons annually.
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Japanese investors show preliminary interest in financing the project.
Scaling Green Hydrogen for European Export
The proposed energy project will be situated in El-Tor, covering 127 square kilometers along a four-kilometer stretch of the Red Sea coast. The facility is designed to generate 400,000 tons of liquid green hydrogen each year, with the entire output designated for export to European markets.
Development will occur in two phases, starting with an initial capacity of 160,000 tons before scaling to maximum output. Technical viability has already been established through a two-year, €5 million study conducted by the consortium, which confirmed the site’s soil suitability for the secure water storage systems required in hydrogen generation.
Merging Digital Infrastructure with Clean Energy
Running parallel to the hydrogen plant is a proposal for a $1 billion hyperscale data center that will operate entirely on the project’s renewable energy output. The facility will launch with a 10,000-square-meter footprint, with an expansion strategy to reach 500,000 square meters, making it one of the largest data hubs in the region.
To maximize energy efficiency, the data center will utilize seawater cooling systems. The consortium noted that Japanese investors have already shown preliminary interest in providing financial backing for the facility.
The center will leverage Egypt’s direct connection to global submarine cables, supporting massive computing demands, cloud services, and large-scale data storage for international technology firms.
Aligning with Egypt’s Cloud and Data Strategy
This dual-project initiative aligns directly with Cairo’s broader ambition to localize digital infrastructure and attract international cloud providers. Egypt currently handles the vast majority of digital traffic between Europe and Asia through submarine cables along the Suez Canal.
Minister Saleh requested that the consortium submit a comprehensive proposal outlining feasibility, technical specifications, and financing structures. Moving forward, the project will require coordinated efforts across the Ministries of Communications and Electricity, the National Authority for the Development of the Sinai Peninsula, and relevant security agencies.
About Renergy Group Alliance
The Renergy Group alliance is a consortium focused on developing large-scale, integrated green energy and digital infrastructure projects. Led in Egypt by CEO Robert Valk, the group conducts extensive technical and feasibility research to merge renewable power generation, such as solar and green hydrogen, with high-capacity technological facilities.
Source: Zawya
