Latsia, Cyprus. Cyta has signed an agreement to acquire the RedMax Data Centre in the Latsia Industrial Area, with plans to expand and upgrade the facility in phases. The move comes as new data showed Cyprus’ economic growth slowed in the first quarter of 2026, while tourism activity in 2025 remained concentrated in the summer months.
Cyta data centre investment
The agreement marks a strategic investment aimed at expanding Cyprus’ digital infrastructure and strengthening the country’s position as a regional data hub.
The project includes the expansion and upgrade of the facility, with development set to proceed in phases. The first phase is expected to enter commercial operation in early 2027.
Once completed, the project will become the largest privately owned data centre in Cyprus.
Cyta said the investment is the next major step in the development of its data centre portfolio and will significantly increase its capacity to provide cloud services and equipment colocation at a larger scale to businesses, public sector bodies and international organisations.
Economic growth slows
Cyprus’ economic growth slowed to its weakest pace in ten quarters during the first quarter of 2026, according to Eurobank Research.
The bank’s latest economic analysis showed that gross domestic product expanded by 3.0 per cent year-on-year in the first quarter of 2026, down from 4.3 per cent in the fourth quarter of 2025 and 3.6 per cent in the first quarter of 2025.
Eurobank Research attributed the deceleration mainly to a less favourable contribution from net exports, despite continued strong trade growth.
Exports increased by 10.5 per cent year-on-year, while imports rose by 10.4 per cent. In the previous quarter, exports had grown by 3.4 per cent and imports had contracted by 3.9 per cent.
The report said the sharp rebound in imports largely reflected base effects linked to unusually low investment in transport equipment, including ships and aircraft, a year earlier.
Eurobank Research forecast that construction will remain a key pillar of economic activity for the rest of the year.
Tourism patterns in 2025
Cyprus’ tourism industry remained heavily concentrated in the summer months during 2025, according to Eurostat figures.
The data showed that August and July were by far the busiest periods for overnight stays in tourist accommodation across the island.
