Electricity Authority Chair Proposes Server Farms Buy Gas Directly

The Chairman of the Israel Electricity Authority, Dr. Assaf Eilat, has proposed a new regulation that would allow large server farms to purchase natural gas directly from suppliers, bypassing the current system where gas is allocated from export quotas. This initiative aims to address the significant electricity consumption of these data centers, which are crucial for the growing tech industry.

Under the current framework, gas intended for export is prioritized, and domestic consumers, including industrial facilities, are allocated gas from remaining quotas. Eilat's proposal suggests that server farms, due to their substantial and continuous energy needs, could secure their own gas supply. This would potentially alleviate pressure on the national grid and ensure a stable energy source for these critical infrastructure components.

The proposal is part of a broader effort to manage the increasing demand for electricity driven by technological advancements and the expansion of digital services. The Electricity Authority is seeking to balance the needs of energy-intensive industries with the overall stability and efficiency of Israel's energy sector. Further discussions and regulatory steps are expected to follow this proposal.