Bezeq and Edgar Partner to Build Massive 16-Megawatt Data Center in Petah Tikva
Bezeq and Edgar signed a non-binding MoU to build a 16-megawatt data center in Petah Tikva, with each partner investing up to 250 million NIS in a 50-50 revenue-sharing venture.
Bezeq is expanding its footprint in IT and cloud infrastructure as its board of directors approved a non-binding memorandum of understanding with real estate firm Edgar to build a massive data center in Petah Tikva with a capacity of at least 16 megawatts. Following the announcement, shares of both Bezeq and Edgar traded higher.
The venture marks Bezeq's strategic shift toward securing new growth engines outside traditional telephony and internet services, capitalizing on surging demand for data centers and artificial intelligence infrastructure.
According to the regulatory filing, the project will operate on a revenue-sharing model where both companies will split revenues, expenses, and investments equally. Each party is expected to invest between 200 million and 250 million NIS from internal sources.
Division of Labor
Under the agreement, Edgar will provide the land and structure in Petah Tikva, manage physical infrastructure, and secure access routes. The firm has already secured a binding electricity connection approval from the Israel Electric Corporation for 16 megawatts, with building permits expected in the coming weeks.
Meanwhile, Bezeq will procure the systems equipment, lead the technological deployment through commercial launch, and manage operations and marketing. The parties entered a 90-day exclusivity period to draft a definitive agreement, with major capital expenditure scheduled for 2027 and 2028, ahead of commercial operations slated for 2028.
Financial Projections and Market Outlook
Bezeq estimates that as occupancy scales, the facility will generate annual revenues of 50 million to 80 million NIS and an annual EBITDA of 25 million to 40 million NIS.
Lior Wider, founder of the Mekhallel Revah information service, called the partnership a logical strategic move aligned with global telecom trends. Wider noted that the collaboration allows Bezeq to leverage its IT infrastructure expertise while avoiding real estate acquisition risks in Petah Tikva, creating a solid, long-term revenue stream.
