Nvidia Deepens Its Israel Commitment With $1.5 Billion Investment
The project represents one of the largest technology infrastructure investments ever made in the Israeli market
Nvidia is preparing to significantly expand its footprint in Israel with plans to establish the country’s largest-ever server farm, reinforcing Israel’s position as a global hub for advanced AI and semiconductor development. The project represents one of the largest technology infrastructure investments ever made in the Israeli market.
A Landmark Data Center in Northern Israel
The new Nvidia facility is expected to be built in the Mevo Carmel industrial zone near Yokneam, adjacent to an existing Nvidia server farm. The company is in advanced negotiations to lease a data center currently under construction, with completion anticipated roughly 18 months after the agreement is finalized.
The site will span approximately 30,000 square meters and consume around 64 megawatts of electricity, making it one of the most energy-intensive data centers in Israel. By comparison, this is more than double the power usage of Nvidia’s nearby Israel-1 supercomputing facility and significantly larger than data centers operated locally by global cloud providers.
Blackwell Processors and Next-Generation Supercomputing
At the heart of the new facility will be Nvidia’s most advanced technologies, including its next-generation Blackwell GPUs and integrated Grace Blackwell platforms. These processors deliver up to four times the training performance and as much as 30 times the inference performance of previous-generation systems.
Nvidia plans to install a new supercomputer at the site, surpassing the capabilities of Israel-1, which previously ranked among the world’s top 50 supercomputers. The new system will primarily be used for internal purposes, including testing and validating future GPU architectures before they are released to market.
Investment Scale and Strategic Importance
The infrastructure buildout—including power systems, cooling, and electromechanical components—is estimated at roughly NIS 1.5 billion (about $465 million). Nvidia’s separate investment in computing hardware brings the total project value to approximately NIS 4.84 billion, or $1.5 billion.
Once completed, the Mevo Carmel site is expected to become Nvidia’s largest laboratory and supercomputing center outside the United States and one of the largest data centers in the Middle East. The facility will also include development laboratories and office space, further anchoring Nvidia’s long-term R&D presence in Israel.
Power, Cooling, and Advanced Infrastructure
To meet the facility’s substantial energy requirements, the Israel Electric Corporation is preparing to supply power from the nearby Hagit power plant. Given the scale of the operation, Nvidia plans to deploy advanced liquid-cooling technologies, expected to be introduced to Israel specifically for this project. These systems will allow for high-density computing while reducing overall energy consumption compared with traditional air-cooling methods.
The data center will also incorporate Nvidia-developed networking and communications technologies, including Spectrum-X800, Quantum-X800, and BlueField-3 SuperNIC platforms, enabling large-scale AI training, scientific research, and complex simulation workloads.
Israel’s Growing Pull for Global Technology Leaders
Nvidia’s expansion comes amid growing interest from other global technology companies considering Israel as a strategic location for advanced computing, AI research, and data center investments. Major cloud providers, semiconductor firms, and AI-focused companies are increasingly drawn by Israel’s deep talent pool, strong university–industry ties, and mature startup ecosystem.
Beyond Nvidia, multinational firms in cloud infrastructure, cybersecurity, automotive AI, and chip design are exploring expanded R&D operations or localized computing infrastructure in Israel. While energy availability and permitting remain challenges, the clustering of high-performance computing assets is strengthening Israel’s reputation as a critical node in the global AI and semiconductor landscape.
A Long-Term Bet on Israel’s Tech Ecosystem
For Nvidia, the Mevo Carmel project is more than a data center—it is a strategic bet on Israel as a core development center for next-generation AI hardware and systems. As demand for massive AI compute continues to surge worldwide, Nvidia’s investment signals confidence in Israel’s ability to support some of the most advanced and energy-intensive technology infrastructure on the planet.
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