Mega Or Holdings (TASE: MGOR) data centers unit Mega DC is in talks with US chip giant Nvidia to build a 64-megawatt data center in the Mevo Carmel industrial park near Yokneam. Earlier this year "Globes" reported that Nvidia would be building a second data center in Mevo Carmel for internal use. Mega DC, owned by Tzachi Nachmias, will own the data center, while Nvidia will be responsible for the equipment and operations.
Mega Or notified the Tel Aviv Stock Exchange (TASE) this morning about the land it owns in the Mevo Carmel industrial park, saying, "The contract is not for material amounts to the company, as of this date. It should be noted that at this stage, the terms of the deal have not yet been finalized, and there is no certainty whether a binding agreement will be signed between the parties and when." Nvidia has declined to comment.
This is not a full-fledged data center that provides services to Israeli industry, but rather closed laboratories for Nvidia's internal use, which it will offer to external partners in accordance with commercial agreements it has in Israel. It will be built on a similar model to the nearby 30-megawatt data center that was inaugurated earlier this year, which was built entirely by Nvidia.
After construction of the facility, if and when completed, Nvidia will own cloud processing and AI facilities with a capacity of nearly 100-megawatts, constituting the biggest and most powerful data center cluster in Israel. The data centers will operate with Blackwell Ultra (GB 300) processors and the company's advanced communications switches developed in Yokneam, together with the huge new campus it will build in nearby Kiryat Tivon, will make Nvidia one of the largest employers in the north and the most significant AI company active in Israel.
The partnership between Nvidia and Mega Or’s Mega DC makes the company headed by Tzachi Nachmias one of the main data center builders in Israel - after a long period in which Mega Or’s main activity focused on logistics warehouses. About two months ago, Nachmias opened an 8-megawatt data center in Modi'in with Nvidia and Nebius, and as revealed by ‘Globes," it plans to build a large data center in Beit Shemesh with an electrical capacity of up to 220 megawatts within about a decade, with a 20- megawatt facility to be built in the first phase at a cost of $200 million.
Mega DC plans to build an additional data center with a capacity of 32 megawatts in the Yoav Employment Park near the Ram Junction, as well as a data center in the Haifa region with a capacity of 16 megawatts.
Published by Globes, Israel business news - en.globes.co.il - on December 17, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
