Economy05:27 · Apr 16

Mega DC Buys Former Alliance Plant Land in Hadera for NIS 1 Billion Cash

Calcalist
Translated & summarized from Calcalist by baba
The story · English

Mega DC, the real estate arm of Mega Or controlled by Tzachi and Efrat Nahamias, has bought the land parcel of the former Alliance tire factory in Hadera for NIS 1 billion in cash. The entire price was paid at signing, making it an unusually large and fully prepaid deal for the current market.

The site, whose main permitted use is industry and data centers, includes about 95,000 square meters of active buildings and infrastructure, plus an electrical substation, high and extra-high voltage connections, and a natural gas tie-in. The plot itself covers 176 dunams in Hadera’s northern industrial zone, near the eastern side of Route 4, and is considered highly suitable for a data center because of its power infrastructure and location.

Calcalist reported in October 2025 that Yokohama, Alliance’s Japanese parent, decided to put the land up for sale about a year after announcing the plant’s closure. Over the past year, most of the factory’s 550 workers were laid off, while a remaining team handled the shutdown, sold equipment, and returned some production machinery to the company’s plants abroad. The plant, founded about 75 years ago, changed ownership several times, was bought by Eliyahu Fisherman in 1992, and later sold to Yokohama in 2007.

Since then, the factory specialized mainly in heavy and industrial tires for agriculture, forestry, construction, industry and earthmoving, largely for export markets. High production costs ultimately led Yokohama to shut it down, leaving the land as the company’s biggest asset. Industry estimates now point to Mega Or planning a major data center there, potentially one of Israel’s largest. Mega DC already has contracts with Nvidia and Nebius, and Mega Or says it operates seven data centers, six in development and one active in Modi'in, with combined expected capacity of 314 megawatts. Four of those sites have already sold their power capacity, all are due to be completed by the end of 2027, and the company also holds land for three more planned facilities totaling 280 megawatts. JLL Israel’s Mor Zeev, who managed the sale, said the transaction was significant and drew strong interest because of the site’s scale, location, infrastructure and potential.

Read the original at Calcalist
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