Photo: A Bezeq office in Tiberias / Geagea, Wikimedia Commons / CC BY 3.0
By: JBizNews Desk 🌎
Bezeq, Israel’s largest telecom company, is joining the country’s data-center building boom. Its board approved a non-binding memorandum of understanding with real-estate firm Adgar to build a server farm of at least 16 megawatts in Petah Tikva’s Kiryat Arye industrial zone, Globes reported.
The two companies entered a 90-day exclusivity period to reach a final agreement. Under the plan, they would split revenue, expenses and investment equally, with each side putting in NIS 200 million to 250 million of its own money, NIS 400 million to 500 million combined. Most of the spending falls in 2027 and 2028, with operations targeted for 2028.
Adgar, controlled by the Schneidman family, brings the land, the building, access roads and physical infrastructure, and already holds a binding commitment for a 16-megawatt electricity connection. Building permits are expected in the coming weeks but have not yet been granted. Bezeq would buy the systems equipment, lead the technological build-out, and run operations and marketing.
Bezeq forecasts annual revenue of NIS 50 million to 80 million and EBITDA of NIS 25 million to 40 million as occupancy ramps up, figures that are projections, not guarantees. Both companies’ shares rose after the announcement, Globes reported, without giving percentages.
The move would give Bezeq a new growth engine beyond traditional phone and internet service, tapping rising demand for data centers and AI infrastructure. Adgar had previously planned a 38-story office tower on the site before shifting to data centers amid the real-estate slowdown.
JBizNews Desk | Tel Aviv
© JBizNews.com. All rights reserved. Unauthorized reproduction or redistribution is strictly prohibited.
