Prime Energy Partners with Delek Properties to Build Distributed Data Center Energy Storage in Israel
Prime Energy, led by founder Yaron Kikoz, has signed a binding framework agreement with Delek Properties to develop energy storage facilities and distributed data centers on Delek’s gas station sites. This innovative approach leverages existing electrical connections at approximately 60-70 gas stations, potentially generating a combined capacity of around 150 megawatts for IT infrastructure. The project is estimated to require an investment of about 900 million shekels, with expected annual revenues of 227 million shekels and an EBITDA of approximately 107 million shekels at full operation.
This announcement comes shortly after the Israel Electricity Authority halted approvals for new data center projects due to concerns about grid overload, despite a current shortage of power plants to meet the surging demand driven by the AI revolution. Kikoz addressed skepticism about Prime Energy’s ambitious plans by recalling the company’s 2021 success in winning a 250-megawatt dual-use facility tender, despite critics calling the bid unfeasible. He emphasized Prime’s nearly 20 years of industry experience and highlighted significant cost reductions in solar panels and storage equipment that have improved project economics.
Prime Energy was founded in 2009 and went public in March 2021 with a valuation of 370 million shekels. After a severe market downturn that saw its stock lose over 90% of its value by late 2023, the company rebounded dramatically, with its market cap now around 1.85 billion shekels. Kikoz’s personal stake is valued at about 700 million shekels. The company merged with Leav Energy Green in 2025, which now holds 38% of Prime’s shares, with Amir Gra managing daily operations.
The partnership with Leav began over a decade ago and has grown through shared projects and acquisitions. Kikoz praised Leav’s leadership as experienced and driven. Prime Energy plans to build 252 megawatts of dual-use solar and storage facilities and aims to reach annual recurring revenues of 1.8 billion shekels and an EBITDA of 966 million shekels within three years.
Kikoz highlighted the growing electricity demand from AI data centers, electric vehicles, robotics, and autonomous cars, illustrating the infrastructure gap with a personal example of residents competing for EV charging stations in his own apartment building. He stressed that this microcosm reflects the national infrastructure challenges Israel faces.
