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Cyta Advances Plans for New Data Centre Amidst Scrutiny
Telecommunications company Cyta is forging ahead with its plans to establish a new data centre, drawing interest from a total of ten companies, as revealed by Cyta chairperson Maria Tsiakka. This announcement came during a recent House Audit Committee meeting, where the Auditor General Odysseas Michaelides’ report on Cyta was a topic of discussion.
Tsiakka informed the committee that Cyta is seeking a strategic partner for the data centre project, with the intention of retaining a 51 per cent stake. The government is considered a potential client for the centre. She disclosed that an auditing firm specializing in the field has been commissioned to prepare a study and engage companies for participation after a tender process.
The Auditor General, Michaelides, raised concerns about the initial feasibility study, which was conducted by a private company and later withdrawn after the Audit Service began its investigation. He alleged that negotiations with this company ceased once the Audit Service intervened. In contrast, Tsiakka emphasized that the data centre’s establishment is a definitive decision by the board and that Cyta had approached 39 companies, with ten expressing interest under certain conditions.
Cyta’s investment strategy, as outlined by Tsiakka, is centered on the data centre and sustainable development initiatives, including renewable energy sources. Michaelides described Cyta as a “fundamentally healthy organisation” but did not shy away from criticizing the previous board for giving an overly optimistic impression of the company’s performance.
Further scrutiny by Michaelides involved the submarine data cable EMC project, where he implicated political connections and criticized the involvement of an individual who allegedly gained financially without significant contribution. Cyta, however, refuted these claims, stating that their withdrawal from the EMC project was due to business reasons and changes in financing terms.
Cyta’s CEO Andreas Neocleous defended the company’s actions, asserting that all decisions were legal and based on sound business judgement. He highlighted the significance of the data centre project in providing an alternative route for cables currently passing through the Suez Canal.
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