Doral CEO: Energy Islands Needed for Data Centers Amidst Power Concerns

Yoni Hantzis, CEO of Doral Energy, expressed skepticism about Israel reaching its 2030 renewable energy target of 30%, stating that only 17% is currently generated. He emphasized the need for significant investment in the electricity grid to accommodate larger renewable energy projects and meet rising demand, particularly from data centers and the advancement of artificial intelligence.

Hantzis highlighted the growing demand for electricity driven by data centers and AI, noting concerns in the U.S. about potential blackouts in some areas due to this increased consumption. He proposed the creation of "energy islands" as an intuitive solution, where energy production is located close to the point of consumption.

Doral Energy is actively working on establishing these energy islands in Israel, which will involve developing micro-grid projects, solar farms, and high-voltage storage facilities. This initiative aims to ensure a stable and accessible electricity supply for data centers and prepare Israel for the next decade.

Despite bureaucratic challenges in Israel, Hantzis affirmed Doral's commitment to investing in the local market, citing abundant sunshine, skilled entrepreneurs, and a sense of Zionism as motivating factors. He acknowledged that while the scale of projects might be smaller than in other markets, the returns are still attractive.

He also discussed Doral's expansion in the U.S., where $45 billion was invested in solar projects in the first half of 2026, positioning the U.S. as the second-largest market globally after China. Doral LLC is recognized as one of the top 10 solar developers in the United States.

Hantzis concluded that while Israel is currently far from its 2030 renewable energy goal, a concerted effort starting now, coupled with recent regulatory changes facilitating bilateral agreements between producers and consumers in a free market, could help achieve the higher target of 35% renewable energy by 2035, as suggested by the Israel Electric Authority.