Mega Or Holdings (TASE: MGOR) data centers unit Mega DC has announced that it will provide 80 MW of data center services at an investment of $880 million to Dutch AI cloud company Nebius.
This follows recent announcements that Mega Or, controlled by Tzachi Nachmias, is in talks to build a new data center at Mevo Carmel, probably for Nvidia, and is selling data center space by the Bnei Reem Junction, probably to Google. Mega Or’s Mega DC will provide the services to Nebius at two data centers: 22 MW at the data center being built near Bnei Reem Junction and 58 MW at the data center in Beit Shemesh.
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The delivery schedules are short, which shows maturity in the construction and deployment of the electricity infrastructure. As far as is known, Mega Or is building a 220 MW substation in Beit Shemesh and 240 MW at the Bnei Reem Junction, reflecting its desire to expand its operations to several hundred MW of activity at each of the sites.
The company has committed to delivering the facility at Bnei Reem to Nebius in the third quarter of this year, and the larger facility in Beit Shemesh between the third quarter of 2026 and the first quarter of 2027. Mega DC says expects an increase in revenue of NIS 300 million per year as a result of the deal. Mega Or did not respond to Globes’ inquiries regarding the identity of the client, while Nebius confirmed the details.
These are two additional sites that Mega Or is providing for Nebius, the cloud services company set up by the Yandex founders Arkady Volozh and Roman Chernin, who mostly live in Israel. Last year, Nebius inaugurated an 8 MW site in Modi’in, which also hosts the new national supercomputer. The acquisition of 80 MW in one year means that Nebius is increasing its activity in Israel 10-fold, alongside the entry of competitors such as Crusoe into the local market.
According to a presentation distributed by Mega Or, it is preparing for a construction boom in the field of data centers – computing facilities that are part of cloud processing and AI: expanding the site in Modi’in by 16 MW, in addition to the existing 8 MW. Building the first phase of a data center at the Bnei Reem Junction with a capacity of 32 MW, a 16 MW data center in Haifa and a 64 MW facility in Mevo Carmel in the Megiddo Regional Council, intended for Nvidia (the company does not specify the name of the client). In the past year, Nachmias has become one of the most active data center builders in Israel, alongside Anan Group, Yossi Sheinfeld’s SDS Serverfarm, NED, and Kardan.
Published by Globes, Israel business news – en.globes.co.il – on January 6, 2026.
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