Cyta plans to spend €70 million on investments in 2027, up 75% from €40 million this year. The funds will go towards a new data centre and the telecoms authority’s first steps into the energy market, according to its budget tabled in parliament on Thursday.
An explanatory note accompanying the budget says the money will finance Cyta subsidiaries carrying out two major projects.
The first is a new data centre, due to be completed within two years. Cyta said it is expected to serve its own customers, local businesses, the state, other public bodies and clients abroad.
The second involves renewable energy, with the aim of entering the energy market commercially. This includes meeting the power needs of the new data centre. The document submitted to parliament does not say how much will go towards the energy venture or what the investment will involve.
Parliament cleared the way for Cyta to enter the energy sector in March, approving a bill that the Electricity Authority of Cyprus (EAC) had opposed. An amendment passed by majority bars Cyta from investing in conventional fuels, limiting it to renewables.
Cyta has said it will focus on consumers who currently cannot access renewable energy. These include young couples renting their homes, people living in apartment blocks and small businesses whose premises do not allow them to install their own solar panels.
Pension deficit widens
The budget also shows a growing shortfall in Cyta’s staff pension fund. According to a new actuarial study, the funding deficit stood at €211.56 million on 31 December 2025. That compares with €140.07 million a year earlier and €85.59 million at the end of 2023.
Cyta’s board has raised its annual contribution to 4.6% from 3.9%. It will also make annual payments to clear the deficit over eight years: €30 million this year, €23 million in 2027 and €25 million in 2028. From 2029 to 2032 it will pay €33.391 million a year, followed by €29.54 million in 2033.
Surplus rises
Cyta projects a pre-tax surplus of €40.09 million for 2027, an increase of €5.2 million, or 14.85%, on 2026. The after-tax surplus is forecast at €34.92 million.
Revenue is expected to rise 6.2% to €478.48 million from €450.57 million in 2026, while expenditure is forecast at €438.39 million, up from €415.67 million this year.
