Israeli institutional investors have invested about $1.03 billion in US data centers provider EdgeConneX, "Globes" has learned. This represents about 15% of the $6 billion invested in the company since the start of 2026.
Two weeks ago Israeli institutional investor Migdal Insurance and Financial Holdings (TASE: MGDL) announced that it had invested $350 million in EdgeCooneX. But it is now clear that Migdal is not the only Israeli company to do so. "Globes" has learned about three other Israeli institutions who have also invested in the US data centers provider - More Investments (TASE: MRIN) has invested $330 million; Meitav Investment House (TASE: MTAV) has invested $250 million; and Clal Insurance Enterprises Holdings (TASE: CLIS) has invested $100 million.
Other investors in EdgeConneX’s current financing round include Canadian pension fund, CPPIB.
The hype surrounding data centers for AI is in full swing. The amount of spending by tech giants on data centers to support the AI revolution and its ability to process its vast amounts of data is skyrocketing, and all companies are increasing in valuation.
Goldman Sachs says tech giants will spend a whopping $5.3 trillion on data centers by 2030, noting that just before first quarter reports this year, estimates were only $4.5 trillion. In this situation, it is easy to understand why everyone wants a piece of this hot field, and Israeli investment institutions are no exception.
A prominent example of this is Zahi Nahmias's high-yielding income producing real estate company Mega Or (TASE: MGOR), which was one of the first to enter the field. The stock has jumped 620% in just three years to a market cap of NIS 21 billion, which has seen it listed on the Tel Aviv 35 index. Alongside it, the shopping mall and office leasing giant Azrieli Group (TASE: AZRG) was also one of the first to operate in the field.
Last week, Solaer Renewable Energies (TASE: SOLR) announced its entry into the field, and it is only the latest in a range of such companies (including Enlight, Nofar and Doral), as well as real estate companies (Ampa, Maven, Israel Canada and Kardan Real Estate). Others such as Rami Levy and singer Omer Adam (Anan) have also joined the fray as has infrastructure company Rimon, which provides cooling systems for data centers.
Operating in dozens of countries, including Israel
EdgeConneX was founded in 2009 to build data centers and has since become a giant in the field. The company reports that it operates more than 90 data centers on five continents for the world's largest cloud and AI companies such as Nvidia, Google, Microsoft and Oracle.
In 2020, the company was acquired by the Swedish infrastructure investment fund EQT, for an estimated at $2.5-3 billion. Today, EdgeConneX's annual revenue is estimated at $80 million, but this is clearly just the beginning of its growth.
The company also begun operations in Israel by acquiring Moshe Lasman's Global Data Center (GDC) in 2021 for about $350 million. At that time, EdgeConneX had about 40-50 data centers
Migdal Insurance Finance head of alternatives and direct equity Ronny Zakay tells "Globes," "Migdal has been active in the data center sector for many years, but there is no doubt that in the last two years there has been a leap forward, in Israel and worldwide due to the tech revolution.
"Everyone is intensively entering the sector and also the electricity sector, which is the infrastructure that supports the world of AI.We invested a lot of money in this case, because this is a very experienced fund that is deployed in many countries, and this reduces risk."
Migdal head of infrastructure Lior Sosonkin adds, "We have known them for many years. In 2018, we gave the company financing, and another significant advantage for them is that they have long-term contracts with strong customers."
Zakay is well aware that there are risks in this sector too. She says, "We are entering cautiously because it is clear that not everyone will be a 'winner' in this world of data centers. If at the moment it seems that there is a large shortage, repeat investments in the field are justified.
"There is always the fear that there will be an excess supply or regulatory restrictions. Therefore, the more you go with a strong and experienced body and with good distribution around the world and strong customers, such as the technology giants, the lower the chance of being harmed."
When asked why the company made the investment now, Migdal responds, "EdgeConneX embarked on very significant fundraising to make major investments going forward, and we saw this as an opportunity."
Meitav head of infrastructure investments Nir Turner tells "Globes," "This investment is part of our diversification into the worlds of real infrastructure, which also includes investment in renewable energy and solar fields, power plants, roads and transmission pipelines."
He adds, "We are seeing very strong demand that exceeds supply. Hyperscale companies (tech giants) are telling data center companies, 'Bring everything you can, those who can deliver on time,' and this is a trend that we expect to continue in the near future. Once there are contracts with the largest companies in the world, there is the confidence to do the deal and there is a floor for any potential downside.
"Right now, EdgeConneX is a growth company, but at a certain point the growth will stabilize, and it will be a type of yielding REIT fund that will distribute dividends."
This is not the first time that Israeli institutions have invested in data centers. Menora Mivtachim (TASE: MMHD) invested $100 million in the IPI fund, which operates in the field, and also registered an exit in Aligned, and together with two other investments, its investment in the field totaled hundreds of millions of dollars. For Migdal itself, this is a doubling of investment in data centers to NIS 2 billion. Clal Insurance also has direct non-tradable investments in the sector that already reach $400 million in equity exposure, and another $300 million in debt exposure.
Published by Globes, Israel business news - en.globes.co.il - on July 19, 2026.
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