IKEA, BIG, and Rami Levy want in too: The list of demand for data centers has been revealed

A document from the Noga company, recently published on the government website, reveals 100 requests to connect server farms across the country, involving real estate and retail giants. In the background: the surge in the use of artificial intelligence and cloud services, which creates unprecedented demand for electricity and puts the power grid to a dramatic test.

YnetAuthor: Sivan Hilai
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IKEA, BIG, and Rami Levy want in too: The list of demand for data centers has been revealed
Photo: Ynet / אילוסטרציה: ChatGPT

A document published on the website of the Noga company, which is responsible for managing the Israeli power system, reveals 100 requests to establish data centers across the country. Among others, requests were submitted to establish data centers in industrial complexes such as BIG, IKEA, and Rami Levy.

Data centers are server farms essential for artificial intelligence. These are massive structures housing thousands of servers that operate non-stop and require a continuous supply of electricity in unprecedented volumes. Thus, the ability to connect them to the national grid has become the most central and dramatic barrier currently facing entrepreneurs in the field. The cumulative demand for enormous power poses a significant challenge to national energy infrastructure.

Data analysis also shows that the system has begun to process a significant portion of the requirements. About a quarter of the projects on the list, 22 planned server farms, have been checked by Noga, and the findings have been passed on to the entrepreneurs. The remaining 78 requests included in the document are currently in the early stages of review and planning, marked with the status "in preparation."

The Noga document outlines the full map of the growing demand. Requests have been submitted to establish such centers in a wide variety of locations, utilizing existing commercial, logistics, and industrial areas for conversion into heavy computing centers.

In the north of the country, giant requests stand out, such as "Kidmat Galil Factory" (875 MW), BIG Kiryat Shmona (500 MW), BIG Tiberias (500 MW), Bar-Lev Industrial Park (66.67 MW), Kibbutz Shamir (50 MW), and complexes in Tziporit and Nesher. In the central region and the Sharon area, requests were submitted to establish data centers at key sites, including Mega Or on the grounds of the Alliance factory in Hadera with an exceptional capacity of 1,111 MW, Neve Yamin (720 MW), Sano Emek Hefer (120 MW), Netanya, Kfar Saba (222 MW), Shoham, Or Yehuda, and Modiin.

In the south and the Negev, the document shows a wide deployment including IKEA Beersheba (500 MW), BIG Kiryat Gat (500 MW), Iscar Kiryat Gat (500 MW), Kargal Lahavim (500 MW), Segev Shalom (445 MW), Ashalim (250 MW), and Ramat Negev (223 MW).

In the United States, the establishment of data centers has become a significant political issue, and it is sparking significant opposition to the subject. A survey by the Gallup research institute found that 71% of Americans oppose the establishment of data centers near their residences. The main concerns relate to economic consequences, including a sharp rise in electricity and water prices, as well as concern about the impact of artificial intelligence on the labor market and a feeling that corporate profits come at the expense of local communities.

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