Azrieli Seeks Partner for Green Mountain Data Centers Valued Up to 5 Billion Euros

Amid the global surge in artificial intelligence investment driving demand for data centers, Azrieli Group is renewing efforts to bring in a partner for its fully owned data center company, Green Mountain. The Israeli conglomerate has hired Goldman Sachs to identify a suitable investor, with meetings underway in London targeting major international financial entities specializing in data centers. Azrieli aims for the partner to inject around 1 billion euros into Green Mountain, valuing the company at 4 to 5 billion euros pre-money. This would place the post-investment valuation at no less than 5 billion euros (approximately 17 billion shekels), a sixfold increase from the 2.8 billion shekel price Azrieli paid in 2021 for the Norwegian firm. The prospective partner would hold about 20% of Green Mountain.

Potential investors include large global investment funds such as CVC and Blackstone. The process had been initially announced in January 2024 but was paused, possibly due to a major deal Green Mountain signed with the Chinese operator of TikTok, which may have complicated fundraising efforts. Since then, Green Mountain’s portfolio has expanded, reducing TikTok’s relative weight. In December, Green Mountain signed a significant agreement to build an 80-megawatt campus in Norway, with an estimated investment of around 1 billion euros, expected to generate net operating income (NOI) of approximately 117 million euros annually at full occupancy.

Azrieli’s data center segment has rapidly grown, becoming a key growth engine. After selling its 33% stake in Canadian company Compass in October 2023 for a valuation of 5.7 billion dollars, Azrieli doubled its investment return in four years and established a foothold in data centers. The data center division’s NOI rose from 53 million shekels in 2021 (3% of total NOI) to an expected 449 million shekels in 2025 (18% of total NOI). Green Mountain expanded from operating three data centers in one country in 2021 to seven centers across three countries today, with signed contracts increasing from 24 megawatts annually to 257 megawatts.

Consequently, the data center assets’ value grew from 1.1 billion shekels in 2020 (3% of Azrieli’s portfolio) to 11.7 billion shekels by Q1 2026 (18% of total assets). This expansion contributed to Azrieli’s stock outperforming the Tel Aviv Real Estate Index, with a 121% gain over three years compared to the index’s 74%. Azrieli’s market capitalization currently stands at 52.7 billion shekels, making it Israel’s largest income-generating real estate company by market value.