Israeli Government Simplifies Data Center Construction Process

The Israeli government has approved an initiative by Prime Minister Benjamin Netanyahu and Minister of Energy Israel Cohen to grant national infrastructure status to server farms and data centers.

This decision significantly alters the approval process for data center construction projects, transferring these powers to the National Infrastructure Commission, instead of the traditional route through district and municipal project committees.

The main objective of this decision is to simplify bureaucratic procedures, which should facilitate the creation of the necessary physical infrastructure to attract large technology companies and support local startups that require substantial computing resources.

To ensure future data centers are powered, the Ministry of Energy plans to expedite the construction of gas and solar power plants. Additionally, the state will introduce targeted incentives for the establishment of server farms in areas with priority access to electricity, meaning near energy sources and reliable power grids.

It is important to note that energy experts have expressed concerns about the government’s decision, which may lead to the construction of server farms in central regions of the country where there are insufficient energy sources and power grids to meet the growing demand.