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Israel’s operational data center capacity increased from 97MW in the second quarter of 2025 to 121MW in the second quarter of 2026, according to a Cushman & Wakefield report
In sum – what to know
200MW capacity cap – Israel’s Electricity Authority has set a 200MW limit for each new data center as the country manages a surge in grid-connection requests.
1GW additional allocation – Another 1,000MW will be allocated to large data centers, bringing approved and planned connections to around 3,000MW, equivalent to about 20% of projected national electricity consumption in 2030.
27GW connection requests – Noga received requests totaling 27,000MW, roughly three times Israel’s current average electricity consumption, prompting a temporary freeze on responses to new requests.
Israel’s Electricity Authority has capped the capacity of new data centers at 200MW and will allocate an additional 1,000MW to large facilities, according to CalcalistTech, as the country faces unprecedented demand for electricity-grid connections from data center developers.
The new rules will bring the total capacity of approved connections and the new allocation to around 3,000MW. That would equal approximately 20% of Israel’s projected national electricity consumption in 2030, according to the report.
The measures follow a surge in requests submitted to Noga, the company responsible for managing Israel’s electricity system. Noga received requests to connect data centers with a combined capacity of 27,000MW, roughly three times the country’s current average electricity consumption.
In response to the influx of applications, the Electricity Authority had issued a temporary order freezing responses to data center connection requests.
Developers will be required to provide financial guarantees of NIS 2 million ($646,000) per megawatt of requested connection capacity. The rules also call for backup mechanisms allowing data centers to be disconnected from the grid during periods of high demand.
The measures are intended to prevent speculative projects from congesting the grid-connection process. A full decision was expected following a three-week public consultation.
An earlier market snapshot in Cushman & Wakefield’s EMEA Data Center Update H1 2026 provides further context on the country’s data center development pipeline and electricity constraints.
The report said Israel’s operational data center capacity increased from 97MW in the second quarter of 2025 to 121MW in the second quarter of 2026. Capacity under construction rose from 67MW to 180MW, while planned capacity more than doubled to 437MW.
For Tel Aviv specifically, Cushman & Wakefield recorded 99MW of operational capacity, 109MW under construction and 254MW planned in H1 2026. The market had 16 live operators across 26 data centers, with colocation vacancy at 13.21%.
The report attributes demand to Israel’s technology ecosystem, particularly cybersecurity, AI, defense technology, and financial services. It also highlights government cloud initiatives and investment in computing infrastructure.
However, Cushman & Wakefield identifies power as the main constraint on large-scale AI data center development. It says Israel’s relatively isolated power system, limited land and competing demand mean announced capacity will require substantial investment in generation, grid infrastructure and storage.
