AI cloud provider Nebius has signed an 80MW data center leasing agreement with Mega Or for two upcoming data centers in Israel.

As reported by CalcalisTech, the neocloud has agreed to lease capacity from Mega Or subsidiary, Mega DC, from two data center facilities being constructed in Israel.

The data centers are estimated to cost around $880 million in total to construct, and will offer a combined 80MW of capacity upon completion.

One data center will be in Masmiyya and offer 22MW, with the remaining 58MW at a data center in Beit Shemesh. The former is expected to be delivered to Nebius in Q3 2026, and the latter in stages starting in Q3 2026 and continuing through Q1 of 2027.

The Beit Shemesh site could eventually expand to 222MW and Masmiyya to 64MW.

According to the agreement, the annual net of all operating expenses and maintenance of all systems is expected to amount to approximately $94.67m.

Nebius previously leased capacity from Mega Or in May 2025 at the Modi'in data center. That capacity agreement spanned 8MW, and saw Nebius deploying 4,000 Nvidia GPUs, of which 25 percent were offered to the Israel Innovation Authority for a national supercomputer.

Mega Or operates and develops a variety of commercial sites, including "initiative and development centers," commercial centers including shopping, leisure, and entertainment facilities, and management and logistics facilities. Its subsidiary Mega DC focuses on "AI data centers."

According to the Mega DC website, the company has six data centers either operating or under development in Israel, spanning more than 250,000 sqm (2.7 million sq ft) and 500MW of IT capacity. The other sites include Neve Yamin, Lod, and Haifa.

In December, the company announced a leasing agreement for 19MW of capacity from its data centers in Modi’in and Masmiyya, with options for an additional 50MW of expansion. According to CalcalisTech, the customer is Google, though the filings do not share the identity of the customer, instead describing it as a "leading international technology corporation."

The contract will see capacity delivered to the customer in Q3 2026 and will last for five years with the option of four 24-month renewal periods.

Nebius is a cloud provider focused on AI workloads that spun out from Yandex in 2024, offering access to GPUs across its presence in the US, Middle East, and Europe. In November, the company signed a $3bn deal with Meta, revealing its capacity was now sold out and was targeting an expansion to 2.5GW by the end of 2026.