A far-reaching decision by the Israel Electricity Authority caps the total power capacity allocated to data centers at just 1,300 MW through 2030 and imposes bank guarantee requirements running into hundreds of millions of shekels. As a result, only around 4% of applications are expected to be approved.
Attorneys from our firm, who advise key players in the market, highlighted two complementary aspects of the challenges posed by the decision in separate media reports.
Speaking to Globes, Asher Bichoonski, a leading partner in our firm’s Project Finance, Infrastructure and Energy practice, addressed the financial implications: the regulator requires a bank guarantee of NIS 2 million per megawatt, amounting to NIS 400 million for a data center at the maximum permitted capacity. This substantial financial barrier effectively limits market access to the same major players.
In TheMarker, Shoam Keren, a leading partner in our firm’s Real Estate, Planning and Zoning practice, highlighted the regulatory uncertainty: “This raises a whole host of questions: Will the existing rules remain in effect? Will there be transitional provisions? The situation is still unclear, and like everyone else, we are waiting for greater certainty.”
Read the full article in Globes >>>
Read the full article in TheMarker >>>
