IKEA, BIG, and Rami Levy Among Firms Seeking to Build Data Centers Across Israel

A document published by Noga, the company managing Israel's electricity system, reveals 100 requests to establish data centers nationwide. These include proposals to build data centers in industrial complexes associated with major retailers such as IKEA, BIG, and Rami Levy. Data centers, which house thousands of servers essential for artificial intelligence development, require continuous and massive electricity supply, making grid connectivity a critical challenge for developers.

The demand for power is rapidly increasing, posing significant challenges to national energy infrastructure. About a quarter of the projects, 22 data centers, have already been reviewed by Noga, with findings shared with developers. The remaining 78 requests are still in early planning and evaluation stages. The document outlines a broad geographic spread of proposed centers, utilizing existing commercial, logistics, and industrial spaces converted for heavy computing use.

In northern Israel, large requests include the Kedmat Galil Factory (875 MW), BIG Kiryat Shmona (500 MW), and BIG Tiberias (500 MW). Central and Sharon regions feature proposals such as Mega Or on Alliance factory grounds in Hadera (1,111 MW), Neve Yamin (720 MW), and others in Netanya, Kfar Saba, Shoham, Or Yehuda, and Modiin. The south and Negev areas include IKEA Beersheba (500 MW), BIG Kiryat Gat (500 MW), Iskur Kiryat Gat (500 MW), and additional sites with capacities ranging from 223 to 500 MW.

The surge in data center construction is not unique to Israel; in the United States, it has become a contentious political issue. A Gallup poll found that 71% of Americans oppose data centers near their homes, citing concerns over rising electricity and water costs, the impact of AI on jobs, and fears that corporate profits come at the expense of local communities.