US Cloud Giant Crusoe Expands $10 Billion Data Center Investment in Israel

Crusoe, a leading US-based neo-cloud company specializing in building and leasing data centers for cloud computing and AI, has significantly expanded its operations in Israel. The company recently leased an additional 100 megawatts of data center capacity across three sites in the country, bringing its total investment to $10 billion over the next 10 to 15 years.

Earlier this year, Crusoe secured 40 megawatts at Cloud Group's data center, owned by Israeli celebrities including singer Omer Adam, and later extended this agreement by another 40 megawatts. Last week, Crusoe signed a new deal with Mega DC, owned by Tzachi Nahmias, to lease 67.6 megawatts at the Idan HaNegev industrial park near Lehavim and Rahat (about 58 megawatts) and in Haifa (about 10 megawatts). This expansion positions Crusoe to hold approximately 150 megawatts in Israel within two years, surpassing Dutch-Israeli competitor Nebius, which currently operates around 120 megawatts.

Before Crusoe and Nebius entered the Israeli market, total data center capacity in the country was about 200 megawatts. The bulk of Crusoe's investment will be used to purchase Nvidia graphic processors, with plans to deploy at least 45,000 Nvidia Vera-Robin processors in its data centers. The Idan HaNegev facility will be delivered in two phases, with half the capacity operational by Q4 2027 and the remainder by Q1 2028, at an estimated construction cost of $700 million. The Haifa center, expected to generate 10 megawatts, will begin operations in Q2 2027 in partnership with Giv Yam, costing around $90 million.

Mega DC projects annual revenues of $85 million from these facilities alone. Alon Yariv, Crusoe's Israel operations manager, emphasized the company's ambition to make Israel a major global market for AI and cloud processing by introducing the latest Nvidia processors. He expressed confidence that international companies will choose Israel for their cloud and AI workloads.