The Algerian government has broken ground on an AI data center in Oran, Algeria.

The Minister of Post and Telecommunications Sid Ali Zerrouki laid the foundation stone for the facility, located in the Akid Lotfi district, this week.

Specifications of the facility have not been shared, but the data center is expected to provide valuable access to technological resources for researchers, startups, and academic institutions.

The country has said it expects AI to contribute seven percent to its GDP by 2027. President Abdelmajid Tebboune has previously outlined a vision to establish Algeria as a leading force in innovation and digital technology across Africa.

In November last year, the People’s National Assembly, the Algerian parliamentary body, launched a data center in Algiers.

Huawei also announced last year that it would partner with the Algerian government to build a data center to aid the digital transformation of the country, though details have not been shared.

Around the same time, China announced the China-Africa Action Plan for Digital Cooperation and Development. The initiative will see the building of a China-Africa digital technology cooperation center and will aid Chinese businesses in undertaking 20 digital infrastructure projects in Africa.

Whilst the countries involved remain unclear, China’s initiative will promote digital trade in Africa, and expand 5G networks, smart cities, and e-commerce.

Algeria currently does not have a hyperscaler presence. In spite of the growing interest in data center operations across Africa, Algeria’s data center market is still relatively small.

Local players such as HostArts, Ayrade, ICOSNET, and ISSAL offer local hosting services, mostly out of Algiers and Oran.