Israel's race to build advanced data centers for artificial intelligence is intensifying, with Mega Or and Nebius launching the country's largest facility in Modi'in, housing 4,000 high-end graphics processors. Mega Or is also planning a much larger center in Beit Shemesh, which could eventually reach 220 megawatts of capacity and cost over $2 billion, alongside several smaller centers across the country. These developments are part of a broader competition to provide artificial intelligence processing power to government, private, and defense sectors, as Israel seeks to catch up with global leaders in the field.

However, the rapid expansion faces significant challenges due to limited electricity infrastructure and a lack of coordinated national planning. Industry leaders and lawmakers warn that without clear government targets and incentives for energy supply and storage, Israel risks falling further behind in the global artificial intelligence race. Calls are growing for the government to establish concrete goals and supportive policies to ensure the country's energy system can meet the demands of next-generation data centers.