DREAM Opens Israel's First Sovereign AI Data Center Near Modi'in

Israeli AI company DREAM has opened what it describes as Israel's first sovereign AI data center near Modi'in, positioning itself to compete in the fast-emerging market for government-grade AI infrastructure. The facility houses a GPU cluster built on NVIDIA B200 systems, enabling DREAM to train proprietary language models and domain-specific AI systems on Israeli soil. The sovereign designation means the data center is designed to meet stringent government and critical infrastructure security requirements, ensuring that sensitive data and AI models remain under Israeli jurisdiction. This addresses growing concerns among government agencies and defense establishments about relying on foreign cloud providers for sensitive AI workloads. The facility is part of a broader wave of data center construction sweeping Israel. Dalia Energy has announced plans for a 130 MW "Ofek" data center in Ashdod, which will become Israel's largest facility when completed in H2 2029 at an estimated cost of $1.5 billion. The Ofek center will be powered by a dedicated 850 MW gas-fired power station, with plans to expand to 200 MW and outfit the facility with Nvidia GPUs, potentially pushing costs to $5 billion. Meanwhile, MedOne is building a new campus in Kfar Yona featuring two underground data centers spanning approximately 30,000 square metres, with the first facility set to open in 2026. EdgeConneX has also expanded its Israeli footprint with a third data center in Rishon LeZion, bringing its total capacity to 14.5 MW across three sites in Herzliya, Petah Tikva, and Rishon.