Enlight Renewable Energy Ltd. ( ENLT ) announced its successful bid in an Israel Land Authority tender on Friday to develop an 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 this state-of-the-art facility, which will play a crucial role in Israel’s national strategy to decentralize its data center infrastructure and promote renewable energy use.

The new complex will feature both a cutting-edge data center and a solar generation and energy storage facility, designed to meet part of the data center’s electricity demand sustainably.

With a 100 MW AC hourly consumption capacity, the project will help reduce operating costs and contribute to Israel’s energy revolution.

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The Ashalim region, home to the country’s largest renewable energy hub, offers ideal conditions with its existing high-voltage transmission and communication networks, making it a prime location for large-scale data centers.

This development aligns with the national goal of moving major electricity consumers to regions with renewable energy production, reducing the strain on central Israel’s overburdened power infrastructure. Enlight views this as a visionary step forward, helping to solve both the energy transmission challenges and the growing demand for data centers.

Gilad Peled, GM of Enlight MENA, emphasized the importance of integrating renewable energy with data centers, stating that the project will not only drive economic growth but also provide a solution to Israel’s energy challenges. The company is also exploring additional opportunities for similar projects in Israel and Europe.

Price Action: ENLT shares closed higher by 1.50% to $16.19 on Thursday.

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