Nadav Beila Buys 22 Acres for New Server Farm in Northern Israel

Real estate developer Nadav Beila's logistics company has acquired an additional 22 acres in the Alon Tavor industrial zone in the Jezreel Valley, Israel. This purchase follows an earlier acquisition of 40 acres in the same park. The new land, bought for approximately NIS 83 million (about $22 million), will be used to establish a server farm in partnership with Doral Energy and Ampa. This collaboration is a continuation of a similar project the trio is undertaking in the Har Tuv industrial zone near Beit Shemesh.

The acquired land comes with approved urban building plans for the server farm. The proximity to power stations and natural gas infrastructure is seen as a significant advantage for the project, potentially powering substations. While an application for electricity approval has not yet been submitted and the Electricity Authority is currently pausing new grid connection permits, the companies are optimistic about approval, partly due to the nearby Alon Tavor power station.

The planned facility in Alon Tavor will have a capacity of 50 megawatts of IT power, intended for AI and cloud computing. This is smaller than their Har Tuv project, which is expected to require 75 megawatts. The Alon Tavor farm is estimated to cost over NIS 1 billion (about $270 million) and generate tens of millions of shekels in annual revenue for each partner.

Doral Energy stated that the expansion of their collaboration with Beila Logistics and Ampa in Alon Tavor is a further step in their data center operations, leveraging existing energy infrastructure. They also highlighted their ongoing development of significant data center facilities in Israel and the US as part of a strategy to connect their energy production and storage capabilities with the power demands of server farms.

This new Alon Tavor facility is part of a larger trend of data center development in Israel, with other planned projects including a 166-megawatt facility in the Shaan Valley, and two 150-megawatt facilities in the western Negev and north of the Gaza Strip.