Power Plant and Server Farm in a Roughly NIS 4 Billion Investment

In depth

Sonol, Afcon and Pentalight have signed a memorandum of understanding to build a natural gas power plant with a capacity of about 900 megawatts. Alongside the power plant, a server farm of up to 200 megawatts and an energy storage facility are planned. Sonol will hold 45% of the venture, and Afcon and Pentalight 27.5% each. The investment in the power plant alone is estimated at about NIS 4 billion.

The plant will be built in the Haifa Bay, on land belonging to Sonol. The project is at an early initiation stage and is subject to the required approvals. Afcon said that the initiation is subject to the required approvals.

The location of the power plant contradicts the government decision, which set preferred locations for power plants between Ashkelon and Hadera. The plan to establish a server farm near the plant also contradicts the policy of the Electricity Authority. At this stage, no binding agreement has been signed between the parties.