Not Every Site Becomes A Data Center
Holding land is no longer enough. The market is starting to distinguish between companies that own a site and companies already approaching grid connection, customer and financing. This article maps data-center land and project owners by actual readiness.
The discussion around data centers now has to focus on land and project owners, where the gap is sharper: land with zoning for a server farm is still far from a project that has secured power, permit, customer and financing. The latest reports show companies that are already excavating and marketing, alongside companies that still rely on an MOU, planning designation or an option near a power station. That gap flows directly into valuation. Two years of waiting for grid connection approval, a building permit or a signed customer can completely change pricing. The test now moves to the missing stage: what has already been proven in the field, what depends on a third party, and what is still missing for land to become a yielding project.
The Companies That Already Moved From Land To Project
Mega Or sits in the advanced part of the map because of Mega D.C: one active 9.5MW IT facility and about 314MW IT under construction. But the Hadera land purchase, about 180 dunams at expected cost of about NIS 1.1b, is much earlier. The zoning allows data centers, but project scale, construction cost and financing structure have not yet been set. Mega Or therefore holds both an operating platform and land still far from cash flow.
Levinstein Engineering presents ALFA in Netanya as a project under construction: 18-21MW IT on about 13.5 dunams, in an equal partnership with NED from the KAO DATA group. The company has received an excavation and shoring permit and started works. Mivne is earlier, but with strong partners, Digital Realty and MedOne, in an 18MW Petah Tikva project. The first 10MW phase is in advanced planning, with excavation start, soil-contamination treatment and completion of conditions for a full building permit. In both cases, there is progress beyond empty land, but a signed customer, financing structure completion and clear timing for initial revenue are still missing.
Rani Zim is building a roughly 12,500 sqm Kfar Saba project with capacity of about 16MW IT after arranging the connection with Israel Electric Corporation. Occupancy approval is expected by the end of Q2 2026. Gav-Yam is building a 10MW, about 14,000 sqm server farm at Matam Park, fully marketed and expected to complete around Q3 2027. For Rani Zim, the challenge is commercial, meaning customer and lease terms. For Gav-Yam, which has already marketed the project, the test is completion and the start of NOI contribution.
A Power Station Nearby Is An Advantage, Not A Contract
Keystone Infra shows the advantage of being close to power. The company is advancing about 100MW IT of development, including a 40MW IT project in the yard of the IPM power station in Be'er Tuvia, after permit receipt and preparation to go on site. That is a real infrastructure advantage over ordinary land, but the project still needs a signed customer, financing completion, EPC contractor and clear revenue timing.
Dalia Energy and Meshek Energy present the largest potential at Eshkol. Their MOU with Serverfarm and Israel Infrastructure Fund includes a data center of at least 130MW IT, leasing about 50 dunams for nearly 25 years, power supply by the Dalia group and a possible Eshkol Energies holding of up to 30%. From a power-availability perspective, this is one of the faster Israeli routes, but at this stage it still rests on an MOU. Until there is a binding agreement, final holding structure, financing completion and timetable, the value remains on paper and has not yet become cash flow.
Kardan Israel received a 48MVA allocation plus 70MVA backup, addressing the sector's core bottleneck. Alma Yesodot is advancing a venture of up to 20MW IT near a power station. I.I.S. presents at Palmahim Park an unusual combination of high-voltage connection, 161kV, a substation, water, gas and diesel infrastructure, and AI Compute Campus planning. The infrastructure advantage is clear, but all three still need to show customer, final investment decision, execution plan and binding agreements.
The Missing Stage Decides The Valuation
The table maps the companies by actual progress and the stages still missing. Its purpose is to avoid a valuation mistake: land backed only by an MOU cannot receive the same value as a project already in excavation or marketing.
| Company Or Site | What Already Exists | What Must Happen Next |
|---|---|---|
| Mega Or | 9.5MW IT active and about 314MW IT under construction, plus new Hadera land | Customers, financing completion and cash-flow contribution by site. In Hadera, a move from land to defined project |
| Levinstein Engineering | 18-21MW IT in Netanya, international partner, excavation and shoring permit | Full building permit, customer, grid connection approval and financing completion |
| Gav-Yam | 10MW at Matam Park, fully marketed, expected completion in Q3 2027 | Customer identity, lease terms and NOI contribution |
| Mivne | 18MW in Petah Tikva, first 10MW in advanced planning and excavation start | CAPEX, financing completion, economic share and revenue timing |
| Rani Zim | 16MW IT in Kfar Saba after actions with Israel Electric Corporation | Customer, operator, revenue model and construction costs |
| Keystone Infra | 100MW IT in development, 40MW near IPM after permit | Signed customer, financing completion, EPC contractor and cash flow |
| Dalia Energy and Meshek Energy | Eshkol MOU of at least 130MW IT and Dalia group power | Binding agreement, final holding structure, financing completion and timetable |
| Kardan Israel | 48MVA plus 70MVA backup | Customer, building permit, execution contractor, CAPEX and financing completion |
| Alma Yesodot | Up to 20MW IT near a power station | Investment decision, customer, execution plan and financing completion |
| I.I.S. | 161kV, substation, infrastructure corridors and AI Compute Campus planning | Detailed plan, partner, customer and binding agreements |
| Adgar Investments | Planned 16MW phase one in Petah Tikva | Building permit, grid connection approval, customer and financing completion |
| Isras | About 5,500 sqm underground data-center space at Gissin Park | Approved capacity, grid connection approval, customer and separate economics |
| Melisron | 18,000 sqm server-farm use at Ofer Carmel | Approved capacity, operator, dedicated permit, CAPEX and customer |
| BSR Engineering and Nofar Energy | Land and cooperation in Shoham | Binding agreement, grid connection approval, building permit and financing completion |
| Doral Energy and Ampa | Equal cooperation in development, construction and financing | Site location, approved capacity, customer, building permit and project terms |
The landowners are not one group. Mega Or, Levinstein, Gav-Yam, Mivne and Rani Zim are more advanced, even though each still has a different missing piece. Keystone and the Eshkol group hold a meaningful power advantage, but still need binding agreements and financing completion. Adgar, Isras, Melisron, BSR and Nofar, and Doral and Ampa are earlier-stage names where investors should look for less intent language and more field evidence. The next disclosure that justifies repricing will not be another general data-center mention, but grid connection approval, full building permit, customer signature, financing completion or execution contract.
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