US giant Crusoe, which is building server farms for OpenAI and Oracle in their joint project for the US government Stargate, is on its way to Israel. “Globes” has learned that the company is negotiating to lease server farm sites.
Crusoe’s move is part of global expansion that includes constructing server farms and power plants, and leasing similar installations, in Ireland, Norway, and Iceland. Crusoe recently participated in a meeting with the deputy accountant general in the Ministry of Finance, Evyatar Peretz, in the course of the formulation of provisions concerning server farms in the Economic Arrangements Bill accompanying the state budget, at which the company presented its activity in the US.
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At the meeting, attended by representatives of server farms and power plants in Israel, Crusoe’s representatives encouraged the Ministry of Finance to introduce relaxations in licensing processes for setting up server farms and the power plants essential for their operation, and to assist in setting up the power infrastructure.
So far, the Ministry of Finance has proposed shortening licensing processes for constructing server farms, but these are limited to server farms with a capacity of 100 megawatts and above, and in two areas in Israel: Yokne’am and the Jezreel Valley, where Nvidia is building new installations; and the north-west Negev, in the area bounded by Kiryat Gat, Ashdod, and Ashkelon. This means that the relaxations do not apply to most of the server farms being constructed in central Israel, with outputs of 30-60 megawatts.
Crusoe’s possible entry into Israel would represent the first serious competition to cloud provider Nebius, which operates from the Netherlands and Israel. For server farm developers, however, it would be good news: dozens of server farm are currently being constructed in Israel by real estate developers, and logistics and technology companies such as SDS, NED, Mega City, Med 1, and Serverfarm, not always with a customer lined up.
Afar as is known, Crusoe is examining a number of sites in Israel, particularly large installations with an output of 100 megawatts or more, with the aim of allowing future expansion. It may, however, initially choose a co-location model, leasing a smaller area in an existing installation, alongside other customers such as Google, Microsoft, Oracle, and Nebius.
Published by Globes, Israel business news – en.globes.co.il – on December 14, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
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