Netanyahu hails plan to fast-track AI server farms as strategic breakthrough

Prime Minister Benjamin Netanyahu said Sunday that the government’s decision to accelerate the establishment of artificial intelligence server farms marks a “major breakthrough” and a strategic move to strengthen Israel’s global standing.

“This is a major breakthrough and a significant move. It's a big move because, ultimately, leadership in artificial intelligence, and in my opinion also in quantum, will be a decisive factor in further developing our power,” Netanyahu said at the government meeting. He added that for a small country, technological leadership is critical both militarily and strategically. “This country is small; it needs to have immense power,” he said, referring to military strength and the ability to project power.

Netanyahu said the initiative forms part of a broader security and strategic vision that he plans to present in the coming days. “But it's not just about projecting power or building strength; it is also about enormous global power advantages. We must have this because we are a small and threatened country,” he said. He thanked Energy and Infrastructure Minister Eli Cohen and other ministers for advancing the plan.

Cohen said the government is removing regulatory barriers and accelerating planning processes for the construction of data centers. “Today we are presenting a motion to remove barriers and accelerate processes for building data centers, which is a crucial step on Israel's path to becoming a global artificial intelligence powerhouse,” he said.

According to Cohen, planning and construction procedures have begun in the past three months for data centers with a capacity of 1 gigawatt. “To put it into perspective, that is more than five percent of Israel's energy consumption in just the last three months alone, and there is more to come,” he said. He added that the facilities are expected to create thousands of jobs and generate billions of dollars in state revenue.

Cohen also said the government is expanding energy infrastructure to support the growth. “Our original plan was to build two power plants by the end of the decade; we will double the number of power plants under construction, including both gas-based and renewable energy-based facilities,” he said.