Migdal Invests 90 Million Shekels in Stark Power's AI Data Center Expansion

Stark Power, a renewable energy and data center infrastructure developer operating in the US, announced that Israeli insurance company Migdal has become a significant investor by contributing approximately 90 million shekels in a funding round totaling around 145 million shekels. This round also included participation from existing stakeholders.

Founded just months ago by Nadav Tena, Shahar Gershon, and Tzafrir Yoeli, former executives from Nofar Energy and Enlight, Stark Power is publicly traded with a valuation near half a billion shekels before the latest fundraising. Tena and Gershon previously served as co-CEOs of Nofar Energy until their departure in June 2025, reportedly due to disagreements with controlling shareholder Ofer Yanai. After leaving, they sold their shares in Nofar for about 225 million shekels to institutional investors.

Earlier this year, the trio joined forces to establish Stark Power, holding equal shares of 40% collectively. Since going public less than four months ago through a reverse merger, Stark Power has raised a total of approximately 665 million shekels from leading institutional investors including Harel, Phoenix, Mor Gemel, hedge funds Alpha and Noked, and Arkin Capital.

Concurrently, Stark Power acquired the American company SAGE for 50 million dollars in cash. SAGE develops data center and natural gas power plant projects based on a co-location model, which involves building server farms adjacent to power stations. The combined portfolio now includes about 5.55 gigawatts of IT data center capacity and 1.55 gigawatts of natural gas power plants.

Stark Power CEO Michael Avidan emphasized that Migdal’s investment signals strong confidence in the company’s long-term strategy amid rapidly growing global demand for energy and data center infrastructure driven by the AI revolution. He highlighted that competitive advantage increasingly depends on integrating development capabilities with deep understanding of data centers’ electricity needs, a combination that Stark Power uniquely offers.

The company’s growth reflects the broader trend of substantial institutional capital flowing into renewable energy and data center sectors in Israel and abroad, positioning Stark Power as a key player in the expanding AI infrastructure market.