The Electricity Authority announced today that it was halting permits for server farms for at least the next 140 days. “So far, the power system has committed to 1,500 megawatts in connections to server farms. If the entire commitment is taken up, it will represent 10% of power consumption in the economy at the beginning of the next decade, which will position Israel as one of the leading countries in this field.
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“However, because of extreme development in the scope of applications for connection to server farms, which has reached 27,000 megawatts, about three times the average consumption in the economy, and in order not to give negative responses to all developers, the Electricity Authority is announcing a halt to responses and processing of applications for connecting server farms for 140 days for the purposes of reviewing the matter.”
The power grid in Israel is overloaded because of long neglect, a situation that has begun to change only in recent years. National Economic Council chairperson Avi Simhon is promoting legislation that will define server farms as national infrastructure and will make planning them easier. It does not appear at all certain, however, that the power grid is able to handle this.
Published by Globes, Israel business news – en.globes.co.il – on July 20, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.
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