Israeli Firms Invest Over $270 Million in New Data Center

Renewable energy firm Doral, Ampa Group, and Nadav B. Logistics, controlled by entrepreneur Nadav Beilaleh, are expanding their data center operations with a new facility in the Alon Tavor industrial zone in the Jezreel Valley. The planned capacity for this new site is approximately 50 megawatts of IT load, with an estimated investment exceeding one billion shekels (over $270 million USD).

This project joins another data center the three companies are developing in the Har Tuv industrial zone near Beit Shemesh, which will have a capacity of about 75 megawatts of IT load. Once both projects are realized, their combined computing capacity will reach approximately 125 megawatts.

The Alon Tavor site's proximity to electricity generation and transmission infrastructure, including the Alon Tavor power station, is seen as a significant advantage. This is particularly relevant as electricity availability has become a major bottleneck for data center development in Israel over the past year.

However, unlike the Har Tuv project, a grid connection for the Alon Tavor facility has not yet been secured. This comes amid restrictions imposed by the Israel Electricity Authority and Noga, the electricity system operator, on new data center connection requests due to high demand and concerns about grid capacity.

The Har Tuv project, announced in May, will be built on approximately 27 dunams (about 6.7 acres) and has already secured a commitment from the electricity system manager for a 96 megavolt-ampere connection. Doral and Ampa forecast that the Har Tuv data center could generate annual revenues of about $150 million and an operating profit before depreciation and amortization (EBITDA) of around $100 million in its first full year of operation.

Doral views its entry into the data center sector as part of its expansion beyond renewable energy generation and storage, aiming to leverage its energy infrastructure development capabilities to tap into the growing market for energy-intensive computing facilities driven by AI and cloud services. Company executives highlighted the strategic importance of these projects for meeting long-term infrastructure demand.