Logistics Firm Sees Major Potential in Gaza Border Kibbutzim
Translated & summarized from Globes by baba
Nadav B. Logistics is investing 650 million shekels to build logistics centers in Zikim and Reim kibbutzim near the Gaza border, citing significant economic and Zionist potential. Deputy CEO Aviv Prianti highlighted the company's flexible partnership models with kibbutzim and its exploration of developing a data center in Zikim. The firm believes that strong companies will overcome recent regulatory hurdles for server farm development.
The story in 5 lines · by baba
- Nadav B. Logistics will invest 650 million shekels in two Gaza border kibbutzim.
- The company sees significant "Zionist and economic potential" in the region.
- Partnerships with kibbutzim are flexible, ranging from 50/50 ownership to passive revenue sharing.
- Nadav B. Logistics is exploring building a data center in Zikim.
- Deputy CEO Aviv Prianti believes strong companies will navigate server farm regulations.
Nadav B. Logistics, a company within the Nadav Belelah empire, is investing 650 million shekels in establishing logistics centers in two kibbutzim in the Gaza border region: Zikim and Reim. Aviv Prianti, the company's Deputy CEO, stated that these areas offer significant "Zionist and economic potential." The company, which has a history of developing logistics centers, shopping malls, residential buildings, and recently solar energy and server farms, sees an opportunity to acquire land at more affordable prices compared to central Israel.
Prianti explained that the deal with Zikim involves a 50-dunam plot for a project that could serve as either a logistics center or a server farm, with feasibility studies currently underway. He highlighted the company's flexible approach to partnerships with kibbutzim, offering full 50/50 co-ownership and active involvement, or a passive partnership where Nadav B. Logistics finances and manages the project while the kibbutz receives revenue. He emphasized the need to understand the unique "DNA, discourse, subtleties, and sensitivities" of kibbutzim, noting that economic considerations are not always paramount.
The company is also exploring the possibility of building a 50-60 megawatt data center in Zikim, leveraging the proximity of power stations. Prianti commented on recent Electricity Authority regulations that impose restrictions on server farm development, calling them a necessary step to bring order to a capital-intensive and regulated field. He believes that strong players with deep pockets will succeed in navigating these regulations and advancing their projects, stressing the importance of the high-tech sector for Israel's global standing.