Nvidia’s Historic $1.5B Investment in Israel’s Largest Server Farm

AI chip titan, Nvidia, is poised to make a historic mark in the Middle East. The company plans a $1.5 billion investment to construct the largest server farm in Israel. This project will be Nvidia’s most extensive AI computing facility outside the United States. Reports from the Israeli financial outlet, Calcalist, and confirmation from multiple sources reveal that the project involves leasing a colossal data center currently under construction in the Mevo Carmel industrial zone near Yokneam. This venture is in partnership with the real estate firm, Mega Or DC.

The upcoming facility will cover approximately 30,000 square meters and utilize around 64 megawatts of electricity. This size and power usage will overshadow Nvidia’s existing Israel-1 supercomputing center. The new center will be home to Nvidia’s next-generation Blackwell processors and a formidable new supercomputer. This supercomputer is set to outdo the capabilities of Israel-1, which currently ranks among the world’s top 50 supercomputers. The estimated infrastructure costs alone stand at around $465 million. With Nvidia’s separate investment in computing hardware, the total investment reaches ~$1.5 billion.

This announcement highlights Israel’s escalating role as Nvidia’s second-largest R&D hub after the U.S. Over 5,000 employees are already working across the country. CEO Jensen Huang has publicly referred to Israel as Nvidia’s “second home.” Nvidia continues to be the world’s most valuable publicly traded company, boasting a market cap of approximately $4.3 trillion.

Source: Calcalist Tech — Nvidia to Invest $1.5 Billion in Israel’s Largest-Ever Server Farm