Cyprus telecommunications provider Cyta has budgeted €70 million for investments in 2027, with funding earmarked for a new data center and an initial move into renewable energy. The investment budget is 75% higher than the €40 million allocated for 2026.
According to an explanatory note accompanying the budget submitted to Parliament, the funds will support subsidiaries responsible for delivering two major projects. The budget does not specify how much will go toward each project.
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A New Data Center And A Renewable Energy Business
The first project is a new data center, which Cyta expects to complete over two years. The organization says the facility will serve its customers, Cyprus-based businesses, government and other public-sector bodies, as well as customers abroad.
The second project involves renewable energy. Cyta plans to enter the energy market commercially, including by meeting the power needs of its new data center. The budget provides no further details about the scale or structure of the energy investment.
Parliament cleared the way for Cyta to operate in the energy sector last March, approving legislation that allows the organization to participate through renewable energy sources. An amendment passed by a majority bars it from investing in conventional fuels. The move was opposed by the Electricity Authority of Cyprus, or EAC.
Cyta has said it intends to focus on consumers who cannot readily access renewable energy themselves. Its target groups include young couples renting homes, apartment residents and small businesses that lack suitable space to install their own solar panels.
Pension Fund Deficit Continues To Grow
The budget also highlights a widening actuarial deficit in Cyta’s employee pension scheme. A recent actuarial study put the funding shortfall at €211.56 million as of December 31, 2025, up from €140.07 million a year earlier and €85.59 million at the end of 2023.
In response, Cyta’s board increased the annual contribution rate to 4.6%, from 3.9%, and approved a schedule of payments intended to clear the deficit over eight years. The organization will pay €30 million this year, followed by €23 million in 2027 and €25 million in 2028.
From 2029 through 2032, annual payments are set at €33.391 million. A final payment of €29.54 million is scheduled for 2033.
Revenue And Surplus Forecast To Rise
Cyta’s 2027 budget forecasts a pre-tax surplus of €40.09 million and a post-tax surplus of €34.92 million. The projected pre-tax surplus is 14.85% higher than in 2026, an increase of €5.2 million.
Revenue is forecast to reach €478.48 million in 2027, up 6.2% from €450.57 million in 2026. Budgeted expenses are €438.39 million, compared with €415.67 million this year.
