Israel Sets Limits on New Data Center Power Consumption
Translated & summarized from Globes by baba
Israel's Electricity Authority has limited new data centers to 200 MW each, with a total cap of 1,300 MW for all new facilities. This decision addresses an overwhelming number of applications that far exceeded the country's power generation capacity. Further criteria will be determined through public hearings, and a significant performance bond is now required to ensure timely construction.
The story in 5 lines · by baba
- New Israeli data centers are capped at 200 MW each, with a total limit of 1,300 MW.
- The Electricity Authority halted new applications in July due to overwhelming demand.
- Applications received totaled 27 GW, vastly exceeding Israel's electricity production.
- A performance bond of 2 million shekels per MW is now required for new projects.
- Additional criteria for data center development will be decided in public hearings.
Israel's Electricity Authority has decided to cap the power consumption of individual data centers at 200 megawatts (MW) and set a total connection limit of 1,300 MW for all new data centers. This decision follows a surge in applications for massive data centers, including those proposed by the real estate company Mega Or, which sought hundreds of MW per facility. In July, the authority halted all new data center connection requests due to an overwhelming 27 gigawatts (GW) of applications, far exceeding Israel's total electricity generation capacity.
The new framework establishes initial limits, with further criteria to be determined through public hearings in the coming months, likely after the formation of the next government. The 200 MW cap per facility will prevent exceptionally large projects, while the overall 1,300 MW limit aims to manage grid capacity. Of the total, 300 MW will be designated for local consumption, with the remainder potentially exported for international computing needs, particularly for artificial intelligence companies.
The decision represents a compromise within the Electricity Authority's plenum, balancing those who favored lower capacity limits with those who advocated for significantly more. The plenum includes representatives from the Ministry of Finance, the Ministry of Energy, and the Ministry of Environmental Protection.
Additionally, a performance bond of 2 million shekels per MW will be required to ensure adherence to construction timelines. This means a project at the maximum 200 MW capacity would need a bond of 400 million shekels, in addition to development costs, to deter speculative applications. Other proposed criteria, such as differentiating between central Israel and the periphery, and offering incentives for data centers that incorporate independent power generation like solar panels and storage, will undergo public review.
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