Bezeq and Adgar Sign Preliminary Agreement for Petah Tikva Data Center

Bezeq and Adgar Investments and Development have signed a non-binding memorandum of understanding to establish and operate a data center in Petah Tikva. Bezeq disclosed the agreement on November 5 after approval by its board and the board of Bezeq International. The proposed facility would have capacity of at least 16 megawatts and would be open to multiple telecommunications carriers. The companies envisage an unincorporated joint venture sharing investment, revenue and expenses equally. Each side would invest an estimated NIS 200 million to NIS 250 million from its own resources, without external financing at project level. Adgar would provide the building on its land, access roads and construction work, while Bezeq would supply the data-center systems and equipment and lead implementation. Each company would retain ownership of the assets it contributes. Bezeq said binding approval had already been obtained from Israel Electric Corporation for an initial grid connection of approximately 16 megawatts reserved for the project. According to information supplied to Bezeq, building permits were expected in the coming weeks. The company expects investment during 2027 and 2028, with commercial operations beginning in 2028. The parties agreed to 90 days of exclusivity, extendable by another 60 days while negotiations continue. The project still requires a detailed agreement, corporate approvals, a valid detailed outline plan and a building permit. Bezeq cautioned that "there is no certainty that the parties will enter into a detailed agreement."