Nvidia’s $1.5B Investment: Building Israel’s Largest Server Farm
Chip and AI titan, Nvidia, is on the brink of announcing the construction of Israel’s largest-ever server farm. This groundbreaking project represents an investment of approximately $1.5 billion, as reported by Israeli financial publication, Calcalist. The facility will be situated in the Mevo Carmel industrial zone near Yokneam in northern Israel, and will be developed in collaboration with real estate firm, Mega Or DC.
The state-of-the-art data center will be home to Nvidia’s next-generation Blackwell processors and advanced AI supercomputing systems. This makes it the most substantial AI infrastructure investment in Israeli history. The basic construction costs of the project — including electromechanical systems, transformers, and cooling — are estimated at approximately $465 million. These costs will be shared between the parties, with Nvidia contributing separately for computing equipment, bringing the total investment to $1.5 billion.
This investment fortifies Israel’s standing as Nvidia’s second-largest R&D hub outside the United States. Nvidia already employs over 5,000 people in the country. CEO Jensen Huang has publicly referred to Israel as Nvidia’s “second home”. In conjunction with a planned mega campus in Kiryat Tivon designed to accommodate over 10,000 employees, these projects are poised to metamorphose northern Israel into a major global AI technology hub.
Currently, Nvidia holds a market capitalization of approximately $4.3 trillion, maintaining its position as the world’s most valuable publicly traded company.
Source: Calcalist Tech – Nvidia to Invest $1.5 Billion in Israel’s Largest-Ever Server Farm