Israeli infrastructure fund Keystone has registered an application with the Be'er Tuvia local planning and building committee to build two data centers inside the 451MW IPM natural gas power plant in Be'er Tuvia, Southern Israel.

According to the plan, the campus will be divided into two data centers with a collective capacity of 40MW. Each data center will cover 15,000 sqm (161,458 sq ft) above and below ground. If approved, the data centers are expected to be completed in 2027.

IPM natural gas power plant
– IPM

The cost of each data center building is estimated at NIS 700 million ($194 million), with a total investment of NIS 1.4 billion ($388.1 million).

The approval process is expected to take five months to complete, as the data centers will be built on the power plant's site.

The Keystone Fund was established in 2019 as part of the Israeli government's policy to promote investment in infrastructure, including energy and digital infrastructure.

Globes first reported the story.

Israel currently has 57 operational data centers, 33 of which are in Tel Aviv. The government has set a goal of 600-700MW of data center capacity by 2030. Providers present in the country include ServerFarms, Edgeconnex, and Oracle.

In January last year, Oracle announced that it was set to open a second data center in Israel, located nine floors below ground level. Oracle has operated a dedicated cloud region for Israel since February 2021, when it opened its first data center in the country.

Since then, Microsoft, AWS, and Google have all launched cloud regions in the country. The most recent is Microsoft, which announced the Israeli Azure region in October 2023.