Tzahi Hagag enters the data center market: investments in Romania to reach up to 67.5 million euros

In recent months, a growing number of companies have entered the server farm and data center sector. Hagag Europe, controlled by Tzahi Hagag, has announced its move into this high-growth market, focusing on the development and construction of data centers in Romania.

Hagag Europe has signed a memorandum of understanding to acquire a company dedicated to developing server farms in Romania, with a capacity of 125 MW IT (175 MW), targeting hyperscale clients. The land acquisition amount, subject to reaching "Ready-to-Build" status, is up to 67.5 million euros. The majority of this amount will be paid only after a final client is secured—shortly before the start of execution and following the completion of construction.

The development model includes building and leasing facilities, including power and cooling infrastructure, to large-scale clients on a long-term basis. The company has entered into a non-binding memorandum of understanding to acquire 100% of the shares of Npower Solar Energy, a Romanian entity holding rights to an 87,500-square-meter plot intended for a server farm with a capacity of 120–125 MW IT (168–175 MW) in southern Romania. The final acquisition price will be determined based on the approved power grid connection capacity.

Preliminary assessments indicate that the location is strategic, offering high accessibility to existing power supply infrastructure and water sources for cooling. Furthermore, the site is located in an area with low natural risk.

Under the memorandum, the seller has committed to obtaining a grid connection approval (ATR) within four months of signing the binding agreement. The sellers are also responsible for bringing the project to "Ready-to-Build" status within 16 months, utilizing international experts in server farm development.

Hagag Europe has secured a right of first offer on any future server farm projects from the selling parties in Romania for a period of 24 months.

The consideration will be paid in three stages: 10% upon receipt of grid connection approval (ATR), 75% upon reaching "Ready-to-Build" status, and 15% following the project's commercial launch.

Roi Brillant, VP of Energy and Infrastructure at Hagag Europe, stated:

"This is a transaction of strategic importance in the server farm sector, which we view as a significant growth engine given the accelerated demand for infrastructure supporting AI, cloud computing, and data processing. The deal's structure provides the company with protection at every stage, while the partnership with an experienced developer creates potential for future expansion."