Exclusive: Nvidia to invest over $500m in new Israeli computing facility

The Data Center Engineering Facility near Yokne'am will house one of Israel's most powerful server farms, and will serve Nvidia Israel's R&D teams in developing AI technologies.

Nvidia is constructing one of the largest server farms in Israel, close to the Elyakim Interchange near Yokne’am in the north of the country. The Data Center Engineering Facility will for the first time deploy Nvidia’s new Blackwell processors. Industry sources estimate the total investment in the project at over $500 million.

The facility is located in a logistics building belonging to real estate company Shoval Investment and Management that was converted to a data center, in the Mevo Carmel Science and Industry Park between Elyakim and Kibbutz Ramat Hashofet. In its full configuration the facility will consume 30 megawatts per hour, putting it on a par with what is currently Israel’s largest data center, Schonfeld Engineering’s SDS server farm in Modi’in, which also consumes 30 megawatts an hour. For the sake of comparison, the power consumption of Amazon’s three server farms in Israel is 12 megawatt-hours each.

The new Blackwell processors that will be installed in Nvidia’s data center are graphics processors with a computing capacity four times stronger than the processors in the company’s Israel 1 supercomputer for AI model training, and thirty times stronger for AI inference tasks. The facility will not only house and cool servers, but will also contain development laboratories and offices. As far as is known, it will serve Nvidia’s needs only, and will not host data for external entities.

The Mevo Carmel industrial park is jointly owned by four local authorities: Yokne’am Illit, Daliyat al-Karmel, Isfiya, and the Megiddo Regional Council.

Built in less than a year

The new site was constructed within less than a year, and will start to operate in the first half of this year, supporting expansion of Nvidia’s research and development activity in Israel.

It is believed that the server farm will be equipped with several thousand Blackwell and more advanced Grace Blackwell processors, alongside Nvidia Israel’s communications processors Spectrum, DGX Quantum, BlueField, and SuperNIC, in the largest concentration in Israel. The new facility will be stronger in its computing and processing power than Nvidia’s Israel 1 supercomputer, which last November became the 34th strongest computer in the world. Israel 1 contains over 2,000 of Nvidia’s previous generation of graphics processors, H100 and BlueField, and is sited at the company’s offices in Yokne’am.

The systems and labs at the new site will serve Nvidia’s dozens of engineering and product groups in developing new technologies- hardware and software technologies for accelerated communications, processor design, AI software, and so on.

Nvidia confirmed the construction of the data center this morning. "Our employees are our most important resource, and we are committed to continued investment in them," said Amit Krig, SVP networking software and Nvidia-Israel site leader. "The new research, development and engineering site will enable Nvidia’s thousands of employees in Israel, and the many who will join later, to continue developing the technologies that drive artificial intelligence, the most important technological power of our time."

Published by Globes, Israel business news - en.globes.co.il - on January 15, 2025.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.

Bank of Israel credit: Shutterstock Israel's forex reserves fell in March

Israel’s foreign exchange reserves at the end of March 2025 fell to $218.821 billion, a decrease of $1.433 billion from their level at the end of February, the Bank of Israel reports.

Bank of Israel Governor Prof. Amir Yaron credit: GPO BoI keeps rate unchanged, cuts growth forecast

The Bank of Israel is concerned about inflation, the escalation of the war in Gaza, which has raised Israel's risk premium, and the turmoil on global markets set off by the trade war.

Eilat Ramon Airport Credit: Sivan Farag Eilat Municipal Spokesperson Russian airline to kick-start int'l flights from Eilat's Ramon airport

Russian airline Red Wings is to launch direct flights between Eilat's Ramon airport and Moscow and Sochi in Russia starting June 12.

High-tech credit: Shutterstock 8,300 tech employees left Israel after start of war

Amid increased relocation, Israel's tech workforce has contracted for the first time in over a decade, the Israel Innovation Authority reports.

Donald Trump  credit: Shutterstock Israel can't escape impact of tariffs

Even if Israel obtains relief from the tariff imposed on it by US President Trump, it will feel the global effects of the trade war, analysts say.

Shekel versus US dollar  credit: Tali Bogdanovsky US market slide shakes shekel

The shekel weakened significantly against both the US dollar and the euro at the opening of foreign exchange trading today.

Arik Faingold credit: Nati Levi Israeli autonomous frontend co AutonomyAI raises $4m

Led by Arik Faingold, the founder of cybersecurity unicorn Pentera, AutonomyAI offers a platform that learns and understands the full organizational context and generates code that can be deployed directly to the production environment.

British Airways aircraft  credit: Shutterstock/Jarek Kilian Tel Aviv - London fares to fall as British Airways resumes flights

From June there will be 20-32 weekly flights operated on the popular Tel Aviv - London route by foreign airlines - British Airways, Wizz Air and easyJet.

Partner Partner forms int'l business diivision

The division will be headed by former Bezeq International VP Global Business Nissan Arieh.

Caesarstone kitchen credit: Caesarstone Caesarstone bucks Nasdaq as tariffs boost potential

The Israeli quartz countertop manufacturer company has fallen on hard times due to Chinese rivalry but tariffs could boost its revenue.

ZIM ship credit: ZIM Trump's tariffs torpedo ZIM's share price

ZIM's share price fell 16.4% on Wall Street on Thursday and a further 7.2% on Friday, closing with a market cap of $1.5 billion, wiping out all its gains in 2025.

Israeli apartments Credit: Shutterstock Apartments sold and rented

A selection of recent real estate deals in Israel in Tel Aviv, Holon, Rehovot, Kiryat Tivon, Shlomi and Beersheva.

THAAD anti missile system credit: The US Army Ralph Scott Wikimedia US deploys more THAAD, Patriot batteries in Israel - report

Amid rising regional tensions the US is bolstering Israel's air defense, Saudi state-owned TV channel Al Arabiya reports.

Tel Aviv Stock Exchange credit: Shutterstock TASE tumbles in Wall Street's wake

Dual-listed stocks have again been hard hit, but the banks are also down sharply.

Donald Trump and Benjamin Netanyahu credit: Avi Ohayon Netanyahu due in Washington to discuss tariffs

According to news website Axios, Prime Minister Benjamin Netanyahu will be the first leader to meet President Trump after the latter's announcement of sweeping import tariffs.

Yoni Assia CEO eToro Credit: PR eToro defers IPO amid market turmoil

The online trading platform had planned to begin meetings with investors this week.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018