Huawei Cloud, China's second-largest cloud provider, has bid to build AI data centers for the Egyptian government, Bloomberg reported in 2026 from documents it reviewed. The bid offered 1,408 Ascend 950 processors for model training plus 600 Ascend 950 or older 910B chips, on a 12-month timeline, for use including military and surveillance work; it would be the first known export of Huawei's Ascend AI chips. The US State Department was reported to be assembling a counteroffer through Nvidia, AMD and Microsoft.
Mohamed Ramadan of the Egyptian Initiative for Personal Rights told Al Jazeera that China may have an edge because "Huawei has been in Egypt for years." Al Jazeera noted Egypt's per-capita water share has fallen below 500 cubic meters a year, under half the UN water-poverty line, and political analyst Maged Mandour said the government would likely give the project "the water that it requires, and the energy that it needs while depriving other parts of the country of the needed resources."
Huawei has years of cloud building abroad behind the Egypt bid. By early 2024 DCD counted 85 availability zones across 30 regions, from Dublin, Amsterdam and Paris to Riyadh, Istanbul, Johannesburg, Mexico City, Sao Paulo, Buenos Aires, Lima and Santiago, with an Egyptian region then due to launch. Inside China its main AI cloud computing centers are at Gui'an in Guizhou, Ulanqab in Inner Mongolia and Wuhu, and it has planned its first site outside the mainland in Hong Kong.
Many governments still treat Huawei as a high-risk vendor; the US and UK have banned its equipment from their networks. In 2021 two US lawmakers warned that its e-government cloud services "expose Huawei's clients to the prying eyes of the CCP," and urged the State Department to counter them.
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