Chinese technology giant Huawei Technologies has offered to build a large artificial intelligence data center in Egypt, as the company seeks to expand its AI infrastructure business amid US restrictions on advanced semiconductor technology, Bloomberg reported.

The proposed data center would be used by Egypt’s military, for surveillance and other public-sector services, according to Bloomberg.

Huawei, which is blacklisted by the US, has proposed installing 1,408 Ascent 950-series AI chips to support cloud services, alongside another 600 chips for a separate system designed to control AI models as they are developed, Bloomberg reported, citing sources and documents.

If completed, the project would mark Huawei’s first major export deal involving its advanced AI chips, according to the report.

The proposal comes amid intensifying competition between the US and China over AI infrastructure and advanced semiconductor technology.

The US State Department has approached Nvidia, AMD and Microsoft about submitting a competing offer to Egypt, Bloomberg reported.

The potential project would further expand Huawei’s presence in the Middle East and Africa, where the company has established a significant footprint in telecommunications and digital infrastructure.

For Egypt, the proposal comes as the country seeks to expand its data-center and AI capabilities, attract technology investment and strengthen its position as a regional digital hub.