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Originally published:

Bezeq and Adgar to build a 16-megawatt data center in Petah Tikva

Bezeq's board approved a non-binding memorandum of understanding with Adgar Investments to jointly build a data center with at least 16 megawatts of capacity in Petah Tikva's Kiryat Arye industrial zone. Commercial operations are planned for 2028.

Bezeq and Adgar to build a 16-megawatt data center in Petah Tikva
Image: Globes (opens the source site in a new tab)

According to Globes, the companies will split revenue, expenses and investment equally, with each expected to invest NIS 200–250 million from its own resources. Adgar will provide the land and construction and be responsible for the physical infrastructure, while Bezeq will buy the equipment, lead the technology setup and run operations and marketing. Adgar already holds a binding 16-megawatt grid connection approval from the Israel Electric Corp, and building permits are expected in the coming weeks.

The companies have a 90-day exclusivity period to sign a detailed agreement, and most of the investment will be spread over 2027–2028. Bezeq estimates that as occupancy rises, the facility will generate NIS 50–80 million in annual revenue for the group and NIS 25–40 million in annual operating cash flow. A six-floor office building will be built above the data center.

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