Nvidia Plans $1.5 Billion Investment in Israel’s Largest Server Farm

Nvidia is set to deepen its footprint in Israel with plans to establish the country’s largest-ever server farm, underscoring Israel’s growing role in the global AI and semiconductor ecosystem. According to reports, the technology giant is in advanced discussions to lease a massive data center currently under construction in the Mevo Carmel industrial zone near Yokneam, in partnership with real estate firm Mega Or DC, controlled by Tzachi Nachmias.

The new facility will be located adjacent to an existing Nvidia-operated server farm developed with Shoval Paz and will significantly expand the company’s local computing capacity. The site is designed to host Nvidia’s next-generation Blackwell processors and a powerful new supercomputer that will surpass the capabilities of Israel-1, Nvidia’s current flagship system in Yokneam, which ranks 34th on the global Top 500 supercomputers list.

Infrastructure costs for the project—including structural construction, electrical and electromechanical systems, transformers, cooling technologies, and power distribution—are estimated at NIS 1.5 billion (about $465 million) and will be jointly funded. Nvidia’s additional investment in computing hardware will push the total project value to approximately NIS 4.84 billion, or $1.5 billion.

Spanning roughly 30,000 square meters, the data center will consume around 64 megawatts of electricity, making it one of the most energy-intensive facilities in Israel—more than double the power usage of Nvidia’s nearby server farm and far exceeding that of Amazon’s local data centers.

Beyond server hosting, the facility will include development labs and offices and will be dedicated exclusively to Nvidia’s internal R&D. The new supercomputer will play a critical role in testing and validating Nvidia’s future AI chips before commercial release, reinforcing Israel’s position as a strategic hub in Nvidia’s global innovation pipeline.