Electricity Authority Chair Proposes Server Farms Buy Gas Directly

The Chairman of the Israel Electricity Authority, Udi Adiri, has proposed a new framework that would allow large server farms to purchase natural gas directly for their operations. Currently, these facilities are supplied with gas through the national infrastructure, which is primarily allocated for electricity generation and export.

Under Adiri's proposal, server farms would be able to acquire gas from the country's export quotas, effectively bypassing the current system. This change aims to ensure a stable and direct supply of gas for the energy-intensive operations of data centers, which are crucial for the growing tech industry.

The proposal comes amid increasing demand for energy from the technology sector, particularly from companies establishing or expanding server farms in Israel. By allowing direct purchase from export quotas, the Electricity Authority seeks to balance the energy needs of these critical industries with the country's overall energy strategy and export commitments.