Israeli Companies Face Greater Global Challenges Amid Uncertainty
Translated & summarized from Calcalist by baba
Navot Bar, CEO of Keystone, stated that Israeli companies face significantly greater challenges operating internationally today due to global uncertainty. Speaking at a conference, Bar highlighted the demand for electricity driven by data centers as a key area for his company. He also noted that while infrastructure projects require navigating complex regulations, swift action is crucial for Israel to maintain its technological edge and attract investment.
The story in 5 lines · by baba
- Israeli companies are finding it much harder to operate globally today, according to Keystone CEO Navot Bar.
- Keystone is developing infrastructure and data centers, driven by a massive demand for electricity.
- The company's international operations, primarily in Europe, are expanding into the data center sector.
- Navot Bar emphasized the need for swift action in developing national infrastructure to avoid losing opportunities.
- Financing data centers, including processors and operations, presents a significant economic challenge for Keystone.
Navot Bar, CEO of Keystone, a company specializing in long-term infrastructure, discussed the challenges facing the Israeli economy and infrastructure companies during a period of uncertainty at the Calcalist and Live Nation Tech1 conference. Bar noted that businesses thrive on predictability, and while market volatility affects the capital markets, Keystone's focus on essential infrastructure like energy and communications provides stability.
Keystone's competitive advantage in the energy sector stems from its partnerships, including with IBM. The company is capitalizing on the significant demand for electricity driven by the massive construction of data centers. Keystone focuses on the entire electricity supply and consumption chain, possessing extensive plans, cash reserves, and proven capabilities to develop infrastructure and execute data center projects. Bar likened this foresight to their earlier recognition of transportation needs in Israel, which led to the acquisition of Egged, emphasizing that numerous data centers are crucial for Israel's technological future and security.
Addressing the challenges of long-term planning amidst uncertainty, Bar stated that rapid technological advancements and increasing demand for processing power are common in industries like data centers and semiconductors. The primary financial challenge involves clients expecting Keystone to fund not only the infrastructure but also the processors and their operation, which must be factored into economic models.
Bar also highlighted the complexity of national infrastructure development due to multiple regulators, stressing the need to connect these entities. He pointed out that bodies like the Electricity Authority and the Electric Company recognize the national importance of these projects. To remain at the forefront of technology, Israel must act swiftly, as delays risk losing infrastructure and opportunities to other nations.
With approximately 20% of its operations abroad, Keystone is active in transportation in the Netherlands, Lithuania, and other European countries, and is now entering the global data center market. Bar observed that it is currently much more difficult for Israeli companies to operate internationally.