Groundbreaking $1.1B Deal: Enlight to Build Israel’s First Integrated Data Center-Solar Hub
March 28, 2025
Rhea-AI Impact
Rhea-AI Sentiment
Rhea-AI Summary
Enlight Renewable Energy (NASDAQ: ENLT) has won a landmark Israel Land Authority tender to develop an integrated data center and renewable energy complex in Ashalim, southern Israel. The company plans to invest up to $1.1 billion in this pioneering 50-acre project.
The facility will feature a 100 MW AC hourly consumption capacity and includes a solar generation and energy storage facility to partially meet electricity demands and reduce operating costs. This strategic development addresses Israel’s growing data center demands while supporting the national initiative to relocate large electricity consumers closer to renewable energy production zones.
The project leverages Ashalim’s position as Israel’s largest renewable energy hub, with existing high-voltage transmission and communication networks, providing an efficient alternative to the current concentration of data centers in Israel’s central region where land and power infrastructure are scarce.
Enlight Renewable Energy (NASDAQ: ENLT) ha vinto un’importante gara dell’Autorità per le Terre di Israele per sviluppare un centro dati integrato e un complesso di energia rinnovabile ad Ashalim, nel sud di Israele. L’azienda prevede di investire fino a 1,1 miliardi di dollari in questo progetto pionieristico di 50 acri.
La struttura avrà una capacità di consumo orario di 100 MW AC e includerà un impianto di generazione solare e di stoccaggio energetico per soddisfare parzialmente la domanda di elettricità e ridurre i costi operativi. Questo sviluppo strategico affronta le crescenti esigenze dei centri dati in Israele, sostenendo al contempo l’iniziativa nazionale di trasferire i grandi consumatori di elettricità più vicino alle zone di produzione di energia rinnovabile.
Il progetto sfrutta la posizione di Ashalim come il più grande hub di energia rinnovabile di Israele, con reti di trasmissione ad alta tensione e comunicazione esistenti, offrendo un’alternativa efficiente all’attuale concentrazione di centri dati nella regione centrale di Israele, dove il terreno e le infrastrutture energetiche sono scarsi.
Enlight Renewable Energy (NASDAQ: ENLT) ha ganado una licitación histórica de la Autoridad de Tierras de Israel para desarrollar un centro de datos integrado y un complejo de energía renovable en Ashalim, en el sur de Israel. La empresa planea invertir hasta 1.1 mil millones de dólares en este innovador proyecto de 50 acres.
La instalación contará con una capacidad de consumo horario de 100 MW AC e incluirá una instalación de generación solar y almacenamiento de energía para satisfacer parcialmente la demanda eléctrica y reducir costos operativos. Este desarrollo estratégico aborda la creciente demanda de centros de datos en Israel mientras apoya la iniciativa nacional de reubicar a los grandes consumidores de electricidad más cerca de las zonas de producción de energía renovable.
El proyecto aprovecha la posición de Ashalim como el mayor centro de energía renovable de Israel, con redes de transmisión de alta tensión y comunicación existentes, proporcionando una alternativa eficiente a la actual concentración de centros de datos en la región central de Israel, donde el terreno y la infraestructura energética son escasos.
Enlight Renewable Energy (NASDAQ: ENLT)가 이스라엘 남부 아샬림에 통합 데이터 센터 및 재생 가능 에너지 단지를 개발하기 위해 이스라엘 토지 당국의 중요한 입찰을 수주했습니다. 이 회사는 이 혁신적인 50에이커 프로젝트에 11억 달러까지 투자할 계획입니다.
이 시설은 시간당 100 MW AC 소비 용량을 갖추고 있으며, 전력 수요를 부분적으로 충족하고 운영 비용을 줄이기 위해 태양광 발전 및 에너지 저장 시설을 포함합니다. 이 전략적 개발은 이스라엘의 증가하는 데이터 센터 수요를 해결하는 동시에 대규모 전력 소비자를 재생 가능 에너지 생산 지역에 더 가깝게 이전하려는 국가 이니셔티브를 지원합니다.
이 프로젝트는 아샬림이 이스라엘 최대의 재생 가능 에너지 허브로서의 위치를 활용하며, 기존의 고전압 송전 및 통신 네트워크를 통해 이스라엘 중앙 지역의 데이터 센터가 밀집해 있는 현재의 상황에 대한 효율적인 대안을 제공합니다. 이 지역은 토지와 전력 인프라가 부족합니다.
Enlight Renewable Energy (NASDAQ: ENLT) a remporté un appel d’offres historique de l’Autorité des terres d’Israël pour développer un centre de données intégré et un complexe d’énergie renouvelable à Ashalim, dans le sud d’Israël. L’entreprise prévoit d’investir jusqu’à 1,1 milliard de dollars dans ce projet pionnier de 50 acres.
La structure disposera d’une capacité de consommation horaire de 100 MW AC et comprendra une installation de production solaire et de stockage d’énergie pour répondre partiellement à la demande d’électricité et réduire les coûts d’exploitation. Ce développement stratégique répond à la demande croissante de centres de données en Israël tout en soutenant l’initiative nationale de relocaliser les grands consommateurs d’électricité plus près des zones de production d’énergie renouvelable.
Le projet tire parti de la position d’Ashalim en tant que plus grand pôle d’énergie renouvelable d’Israël, avec des réseaux de transmission haute tension et de communication existants, offrant une alternative efficace à la concentration actuelle des centres de données dans la région centrale d’Israël, où les terres et les infrastructures énergétiques sont rares.
Enlight Renewable Energy (NASDAQ: ENLT) hat eine wegweisende Ausschreibung der israelischen Landbehörde gewonnen, um ein integriertes Rechenzentrum und einen Komplex für erneuerbare Energien in Ashalim, im Süden Israels, zu entwickeln. Das Unternehmen plant, bis zu 1,1 Milliarden Dollar zu investieren in dieses bahnbrechende Projekt über 50 Acres.
Die Anlage wird über eine Stromverbrauchskapazität von 100 MW AC pro Stunde verfügen und umfasst eine Solarstromerzeugungs- und Energiespeicheranlage, um teilweise den Strombedarf zu decken und die Betriebskosten zu senken. Diese strategische Entwicklung adressiert die wachsende Nachfrage nach Rechenzentren in Israel und unterstützt gleichzeitig die nationale Initiative, große Stromverbraucher näher an die Produktionszonen für erneuerbare Energien zu verlagern.
Das Projekt nutzt die Position von Ashalim als das größte Zentrum für erneuerbare Energien in Israel, mit bestehenden Hochspannungsübertragungs- und Kommunikationsnetzen, die eine effiziente Alternative zur derzeitigen Konzentration von Rechenzentren in der zentralen Region Israels bieten, wo Land und Energieinfrastruktur knapp sind.
Positive
- Secured strategic 50-acre land for $1.1B integrated data center project
- Project addresses high demand for data centers in Israel
- Renewable energy integration will reduce operating costs
- Positioned to capture growing market for combined renewable energy and data centers
- Strategic location with existing high-voltage transmission infrastructure
Negative
- Significant capital expenditure requirement of $1.1B
- Solar generation will only partially meet electricity demands
- Project execution and integration risks
Insights
Enlight’s successful bid for Israel’s first integrated data center and renewable energy facility represents a significant strategic expansion that diversifies the company’s business model beyond pure renewable energy generation. The $1.1 billion planned investment is substantial relative to Enlight’s $1.9 billion market capitalization, indicating a major commitment to this new direction.
This project cleverly addresses two crucial infrastructure challenges in Israel: the growing demand for data centers and the inefficient transmission of electricity from southern generation sites to central consumption areas. By co-locating a data center with renewable energy generation in Ashalim, Enlight creates a more efficient system that reduces transmission losses and infrastructure costs.
The 100 MW AC consumption capacity positions this as a significant data center for the Israeli market. This vertical integration strategy allows Enlight to capture value across the energy supply chain – from generation to consumption – potentially improving project economics compared to standalone renewable facilities.
What makes this particularly valuable is the creation of a template that could be replicated in other locations. The company specifically mentions exploring similar opportunities in Israel and Europe, suggesting this represents a new growth vector rather than a one-off project.
While this strategic move leverages Enlight’s core competencies in energy development, it also introduces execution risks in the data center space, which requires different expertise. The substantial capital commitment will likely necessitate external financing, raising questions about the funding structure and potential shareholder dilution.
This land tender win positions Enlight at the intersection of two critical infrastructure trends: the surging demand for data processing capacity and the transition to renewable energy. The Ashalim project addresses a fundamental inefficiency in Israel’s current infrastructure – data centers concentrated in land-constrained central regions requiring expensive transmission of power generated in the south.
The 50-acre site provides ample space for both the data center and associated renewable generation, creating a self-reinforcing ecosystem. The existing high-voltage transmission and communication networks in Ashalim significantly reduce development costs and timeline risks compared to greenfield locations.
What’s particularly innovative is the integration of storage with the renewable generation component, which helps address the intermittency challenges of solar power. This enhances the reliability of the power supply to the data center, a critical factor for operators who require 99.999% uptime.
From a technical perspective, the ability to directly supply renewable energy to the data center creates a competitive advantage in attracting environmentally conscious hyperscale customers who have made commitments to power their operations with clean energy. The project aligns perfectly with the global trend of major cloud and technology companies demanding renewable-powered data centers.
While Enlight faces the challenge of operating in a new sector, the renewable energy integration aspect plays to their strengths. The $1.1 billion investment signals serious commitment to establishing themselves in the data infrastructure space, though execution will be crucial as they compete with established data center developers and operators.
03/28/2025 – 06:00 AM
Company secures strategic land to develop a pioneering data center in southern Israel, integrating renewable energy to support national infrastructure expansion
TEL AVIV, Israel, March 28, 2025 (GLOBE NEWSWIRE) — Enlight Renewable Energy (“Enlight”, “the Company”, NASDAQ: ENLT, TASE: ENLT.TA), a leading renewable energy platform, announced today that it won an Israel Land Authority (ILA) tender to develop a state-of-the-art integrated data center and renewable energy complex on a 50-acre site in Ashalim, southern Israel. The Company plans to invest up to $1.1 billion in the project, which marks a major milestone in the expansion of data centers to southern Israel, contributing to the strategic national goal of relocating large electricity consumers to regions with renewable energy production.
There is enormous demand for new data centers in Israel, but most of them are concentrated in the central region, where there is a severe shortage of suitable land and power infrastructure. This region requires the costly transmission of electricity produced in the south to meet its growing energy needs. Ashalim, home to Israel’s largest renewable energy hub with existing high-voltage transmission and communication networks, offers an ideal solution for large-scale data centers. Enlight views the ILA tender as a visionary step forward for Israel, and sees the award as a significant opportunity for the Company.
The solar generation and energy storage facility planned adjacent to the data center will help meet part of its electricity demand and reduce operating costs. By integrating a renewable energy facility with the data center, Enlight will leverage its expertise in energy development, construction, financing, and management, marking another milestone in Israel’s energy revolution. The integrated data, generation, and storage complex, which Enlight plans to build in accordance with the tender’s terms, will feature a 100 MW AC hourly consumption capacity.
Enlight is actively exploring additional opportunities in the expanding market of combined renewable energy and data center facilities, both in Israel and Europe.
Gilad Peled, GM of Enlight MENA: “Enlight is leading the integration of renewable energy into the growing data center sector. We believe that powering data centers with renewable energy is the right path to take, both as a national initiative and for us as a developer. Winning this tender will allow us to leverage our expertise in renewable energy and lead a national effort to develop data centers in southern Israel. This represents both an economic growth engine as well as a solution to the challenges and costs of electricity production and transmission into the country’s central region.”
About Enlight Renewable Energy
Founded in 2008, Enlight develops, finances, constructs, owns, and operates utility-scale renewable energy projects. Enlight operates across the three largest renewable segments today: solar, wind and energy storage. The company’s portfolio is 30.2 FGW, out of which the mature portfolio is 8.6 FGW, and the operational portfolio is 3 FGW. A global platform, Enlight operates in the United States, Israel and 10 European countries. Enlight has been traded on the Tel Aviv Stock Exchange since 2010 (TASE: ENLT) and completed its U.S. IPO (Nasdaq: ENLT) in 2023. Learn more at www.enlightenergy.co.il.
Contacts:
Yonah Weisz
Director IR
investors@enlightenergy.co.il
Erica Mannion or Mike Funari
Sapphire Investor Relations, LLC
+1 617 542 6180
investors@enlightenergy.co.il
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding the Company’s expectations relating to the Project, the PPA and the related interconnection agreement and lease option, and the completion timeline for the Project, are forward-looking statements. The words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “target,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible,” “forecasts,” “aims” or the negative of these terms and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: our ability to site suitable land for, and otherwise source, renewable energy projects and to successfully develop and convert them into Operational Projects; availability of, and access to, interconnection facilities and transmission systems; our ability to obtain and maintain governmental and other regulatory approvals and permits, including environmental approvals and permits; construction delays, operational delays and supply chain disruptions leading to increased cost of materials required for the construction of our projects, as well as cost overruns and delays related to disputes with contractors; our suppliers’ ability and willingness to perform both existing and future obligations; competition from traditional and renewable energy companies in developing renewable energy projects; potential slowed demand for renewable energy projects and our ability to enter into new offtake contracts on acceptable terms and prices as current offtake contracts expire; offtakers’ ability to terminate contracts or seek other remedies resulting from failure of our projects to meet development, operational or performance benchmarks; various technical and operational challenges leading to unplanned outages, reduced output, interconnection or termination issues; the dependence of our production and revenue on suitable meteorological and environmental conditions, and our ability to accurately predict such conditions; our ability to enforce warranties provided by our counterparties in the event that our projects do not perform as expected; government curtailment, energy price caps and other government actions that restrict or reduce the profitability of renewable energy production; electricity price volatility, unusual weather conditions (including the effects of climate change, could adversely affect wind and solar conditions), catastrophic weather-related or other damage to facilities, unscheduled generation outages, maintenance or repairs, unanticipated changes to availability due to higher demand, shortages, transportation problems or other developments, environmental incidents, or electric transmission system constraints and the possibility that we may not have adequate insurance to cover losses as a result of such hazards; our dependence on certain operational projects for a substantial portion of our cash flows; our ability to continue to grow our portfolio of projects through successful acquisitions; changes and advances in technology that impair or eliminate the competitive advantage of our projects or upsets the expectations underlying investments in our technologies; our ability to effectively anticipate and manage cost inflation, interest rate risk, currency exchange fluctuations and other macroeconomic conditions that impact our business; our ability to retain and attract key personnel; our ability to manage legal and regulatory compliance and litigation risk across our global corporate structure; our ability to protect our business from, and manage the impact of, cyber-attacks, disruptions and security incidents, as well as acts of terrorism or war; the potential impact of the current conflicts in Israel on our operations and financial condition and Company actions designed to mitigate such impact; changes to existing renewable energy industry policies and regulations that present technical, regulatory and economic barriers to renewable energy projects; the reduction, elimination or expiration of government incentives for, or regulations mandating the use of, renewable energy; our ability to effectively manage our supply chain and comply with applicable regulations with respect to international trade relations, tariffs, sanctions, export controls and anti-bribery and anti-corruption laws; our ability to effectively comply with Environmental Health and Safety and other laws and regulations and receive and maintain all necessary licenses, permits and authorizations; our performance of various obligations under the terms of our indebtedness (and the indebtedness of our subsidiaries that we guarantee) and our ability to continue to secure project financing on attractive terms for our projects; limitations on our management rights and operational flexibility due to our use of tax equity arrangements; potential claims and disagreements with partners, investors and other counterparties that could reduce our right to cash flows generated by our projects; our ability to comply with tax laws of various jurisdictions in which we currently operate as well as the tax laws in jurisdictions in which we intend to operate in the future; the unknown effect of the dual listing of our ordinary shares on the price of our ordinary shares; various risks related to our incorporation and location in Israel; the costs and requirements of being a public company, including the diversion of management’s attention with respect to such requirements; certain provisions in our Articles of Association and certain applicable regulations that may delay or prevent a change of control; and other risk factors set forth in the section titled “Risk factors” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) and our other documents filed with or furnished to the SEC.
These statements reflect management’s current expectations regarding future events and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as may be required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
FAQ
How much is Enlight (ENLT) investing in the new Ashalim data center project?
Enlight plans to invest up to $1.1 billion in the integrated data center and renewable energy complex.
What is the power capacity of Enlight’s (ENLT) new Ashalim facility?
The integrated complex will have a 100 MW AC hourly consumption capacity.
Where is Enlight (ENLT) building its new integrated data center?
The facility will be built on a 50-acre site in Ashalim, southern Israel, which is the country’s largest renewable energy hub.
How will Enlight’s (ENLT) Ashalim project reduce operating costs?
The project will include solar generation and energy storage facilities to partially meet electricity demands, reducing power transmission costs and operating expenses.
What markets is Enlight (ENLT) targeting for future data center projects?
Enlight is actively exploring opportunities for combined renewable energy and data center facilities in both Israel and Europe.
Search
RECENT PRESS RELEASES
Related Post
