Huawei Bids to Build AI Data Center in Egypt as US Weighs Rival Offer

Huawei has submitted a proposal to supply Egypt with 2,008 AI chips and build an AI data center, while the United States is considering a competing bid, according to Bloomberg.

The proposed project could significantly expand Egypt’s AI computing capacity. It would also allow Huawei to strengthen its position in the Middle East and Africa’s growing AI infrastructure market.

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Huawei’s AI Data Center Proposal

According to documents reviewed by Bloomberg News, Huawei’s proposal includes 1,408 Ascend 950-series processors for a cloud platform designed to train AI models. The company has also offered another 600 chips, either from the Ascend 950 series or the earlier Ascend 910B, for two inference clusters that would run AI models after training.

Huawei has proposed completing the data center infrastructure within 12 months, according to the documents.

The proposal would give Egypt access to Huawei’s latest-generation Ascend processors. The company has previously showcased its Ascend 950DT at an event in South Korea. Meanwhile, its Latin American cloud business has indicated that Huawei is exploring potential deployments of its advanced AI accelerators in the region.

Global Competition for AI Infrastructure

If the Egyptian project goes ahead, it could become an early international deployment of Huawei’s most advanced AI processors. It would also provide the company with a high-profile reference project outside China.

Huawei’s proposal also involves a partnership with Chinese AI company iFlytek. Both companies have been on the US Commerce Department’s Entity List since 2019.

The proposed Huawei project has also attracted attention in Washington.

It was reported that the US State Department has approached Nvidia, AMD and Microsoft about forming a consortium that could submit a competing proposal. The move highlights the growing competition between US and Chinese technology companies to supply the infrastructure powering the global AI boom.

For the United States, the Egyptian project represents more than a commercial opportunity. Winning the bid could help US technology companies expand their presence in a strategically important market while limiting Huawei’s ability to establish an early foothold for its advanced AI hardware outside China.

Strategic Implications for Egypt

For Huawei, meanwhile, securing the project would demonstrate that its AI infrastructure can compete in international markets despite restrictions on access to advanced US technology.

For Egypt, the decision comes as the country seeks to build the computing infrastructure needed to support its broader AI ambitions.

Egypt’s second National Artificial Intelligence Strategy targets increasing AI’s contribution to 7.7% of GDP by 2030. Achieving that goal will require more than AI applications and talent. It will also depend on access to sufficient computing power, cloud infrastructure and data centers.

A large-scale AI data center could provide the infrastructure needed to train and deploy locally developed AI models. It would support businesses adopting AI and strengthen Egypt’s position as a technology hub serving Africa and the wider region.

Future of AI Technology Partnerships

It could also reduce reliance on overseas computing infrastructure as demand for AI services grows. The proposed project illustrates how AI infrastructure is becoming increasingly tied to global technology competition.

AI chips, cloud platforms and data centers are now strategic assets, with governments seeking greater control over the infrastructure required to develop and deploy advanced AI systems.

For countries such as Egypt, this competition can create opportunities to attract investment, computing capacity and technology partnerships. At the same time, choosing between competing technology ecosystems could have longer-term implications for data governance, supply chains and access to future AI technologies.

A Huawei-led project would deepen China’s technology presence in Egypt, while a US-backed alternative could strengthen ties with American AI infrastructure providers.

It remains unclear whether Egypt will proceed with Huawei’s proposal or consider an alternative offer from US technology companies.

The project has not been officially confirmed by Huawei or Egyptian authorities. Bloomberg’s report is based on documents it reviewed and people familiar with the matter.

If the project moves forward, its eventual scale, technology choices and implementation could provide an important signal of Egypt’s ambitions to become a major AI infrastructure hub in Africa, and of the intensifying competition between US and Chinese technology companies for influence in emerging AI markets.