AI Data Centers Threaten Israel's Power Grid, Doral CEO Warns
Israel's power grid is struggling to keep pace with soaring energy demands from AI data centers, warns Doral CEO Yoni Chantsis, urging co-location with solar facilities.
The rapid expansion of artificial intelligence and data centers is exposing a critical gap in Israel's power grid infrastructure, according to Doral Renewable Energy Resources CEO Yoni Chantsis. Speaking at the TECH1 conference in a conversation with Adv. Michael Makiah of Agmon & Co., Chantsis warned that the local grid is ill-prepared for the soaring energy demands driven by the tech sector.
"Building electrical infrastructure is a highly complex endeavor, and there is a glaring mismatch between supply and demand," Chantsis stated. He explained that while tech moves at a breakneck pace, the energy sector is bound by heavy regulation and long-term planning. The State of Israel is grappling with legacy challenges while needing to double its power generation capacity, a process that cannot be rushed.
To bridge the gap, Doral is proposing an innovative model already implemented in the United States: co-locating data centers directly next to existing power generation facilities, particularly solar plants, rather than building them separately and running new transmission lines. This approach would utilize solar energy during the day and draw from the national grid at night, reducing the strain on infrastructure and optimizing land use in a densely populated country.
Chantsis also emphasized the massive investments required for the energy sector, estimated at some 100 billion shekels, while warning that the costs must not be passed on to the general public. Despite local regulatory hurdles, Doral continues to expand globally, leveraging technology and entrepreneurship developed in Israel to build massive clean energy projects abroad.
