MedOne Unveils 30,000 Sqm Underground Data Center Campus in Kfar Yona, First Phase Opening 2026

Israeli data center operator MedOne is building one of the most distinctive data center campuses in the Middle East: a twin underground facility spanning approximately 30,000 square meters beneath a new campus in Kfar Yona, with the first phase scheduled to open in 2026. The subterranean design, driven by both security considerations and Israel's unique geopolitical environment, places the entire data infrastructure below ground level, providing enhanced protection against missile attacks, extreme weather events, and electromagnetic interference — a combination of resilience features that few commercial data centers worldwide can match. ## Underground by Design The decision to build underground reflects lessons learned during recent conflicts, when above-ground infrastructure proved vulnerable to rocket and missile strikes. MedOne's engineers designed the facility with reinforced concrete shells, blast-resistant entry points, and independent air filtration systems that can operate in sealed mode during emergencies. "After 2023 and the June 2025 escalation, every major Israeli enterprise wants to know that their data is physically protected," said a MedOne executive. "Our underground campus offers a level of physical security that simply cannot be achieved in a conventional above-ground facility." The facility will feature redundant power feeds from two independent substations, on-site diesel generators with 72-hour fuel reserves, and a dedicated connection to the Israeli national fiber backbone. Cooling systems use a hybrid approach combining chilled water loops with ambient ground temperature — the underground environment naturally maintains temperatures of 18–22°C year-round, significantly reducing cooling energy consumption compared to surface facilities. ## Capacity and Target Market The first phase delivers approximately 10.5 MW of IT load capacity across 12,000 square meters of raised-floor data hall space. MedOne is targeting enterprise colocation customers, cloud service providers, and government agencies requiring sovereign data hosting within Israeli territory. The second phase, scheduled for completion in 2027, will bring total campus capacity to approximately 25 MW across the full 30,000 square meters. The modular design allows individual data halls to be configured for either standard enterprise workloads or high-density AI/GPU computing, with rack power densities ranging from 8 kW to 50 kW per rack. ## Competing in a Booming Market The Kfar Yona campus enters a rapidly expanding Israeli data center market projected to reach $2.12 billion by 2031, growing at a CAGR of 10.54 percent. MedOne faces competition from Mega Or's NIS 880 million facilities in Masmiyya and Beit Shemesh, Dalia Energy's 130 MW Ofek center in Ashdod, and DREAM's sovereign AI data center near Modi'in. However, MedOne's underground positioning targets a specific niche: customers who require maximum physical security and are willing to pay a premium for resilience. The company reports strong pre-leasing interest from financial services firms, defense contractors, and healthcare organizations handling sensitive patient data. ## Israel's AI Infrastructure Race The Israeli government's recent decision to fast-track data center permitting has accelerated the market dramatically. Energy Minister Eli Cohen announced that construction has begun on AI data centers consuming 1 gigawatt of power — more than five percent of Israel's total electricity consumption — underscoring the scale of investment flowing into the sector. MedOne's Kfar Yona campus is also investing in direct fiber connectivity to international submarine cables landing in Israel, providing low-latency connections to European and Asian markets. The campus will serve as a regional hub for MedOne's growing portfolio, which also includes a 10.5 MW facility in Ramla currently under construction.