Afcon Announces 900-MW Power-Plant Venture With Sonol and Pentalight

Afcon announced on Tuesday, November 10, that it had signed a memorandum of understanding with Sonol Israel, Sonol Real Estate and Pentalight Energy for a joint energy project. The proposal combines a natural-gas power station with approximately 900 megawatts of capacity, a data center and electricity-storage facilities. The station alone is estimated to cost NIS 4 billion, excluding the data center and storage facilities. The partners intend to establish a company to develop and operate the project. Sonol Israel would hold 45%, with Afcon and Pentalight each holding 27.5%. Financing would combine the partners’ equity contributions with financial debt. The proposed data center would have capacity of up to 200 megawatts. Sonol Real Estate would lease 48 dunams to the venture for up to 24 years and 11 months, subject to the required approvals. The venture would have an option to rent up to another 30 dunams for the data center and storage facilities. If additional land is leased, Sonol could raise its stake to 50.5%, diluting the other two partners. Sonol Real Estate would also receive payments linked to milestones and project progress. Sonol CEO Avi Magido described entering power-station development as a significant step in Sonol’s evolution into a diversified energy group. Afcon chairman Israel Reif pointed to growing electricity demand and infrastructure serving computing and artificial intelligence. The project remains subject to regulatory and planning approvals and the signing of a binding agreement.