Nebius Secures Major 80MW Data Center Capacity in Israel with Mega Or

Nebius Signs 80MW Data Center Lease with Mega Or in Israel

January 06, 2026

In a significant move to expand its AI cloud infrastructure, Nebius has entered into a major 80-megawatt data center leasing agreement with Israeli developer Mega Or. This deal underscores the intense demand for high-capacity computing power driven by the global artificial intelligence boom and marks a substantial expansion for the cloud provider in a strategically important market.

The agreement, first reported by CalcalisTech, involves Nebius leasing capacity from two new facilities being built by Mega Or's subsidiary, Mega DC. The combined construction cost for the two data centers is estimated at approximately $880 million. One site, located in Masmiyya, will provide 22MW of capacity, with the larger 58MW facility situated in Beit Shemesh. Deliveries are scheduled to begin in the third quarter of 2026, with the Beit Shemesh capacity being phased through the first quarter of 2027.

The scale of the commitment is further highlighted by the expected annual operational cost, which is projected to reach around $94.67 million after accounting for all expenses. Both sites are designed for future expansion, with potential capacity growing to 64MW at Masmiyya and up to 222MW at Beit Shemesh. This deal builds upon an existing partnership between the two companies; in May 2025, Nebius leased an 8MW cluster at Mega Or's Modi'in data center to deploy 4,000 Nvidia GPUs, partially dedicated to a national supercomputer project.

For Mega DC, this agreement represents a major commitment for its growing portfolio. The company, which focuses specifically on AI data centers, currently has six facilities in operation or development across Israel, totaling over 2.7 million square feet and 500MW of planned IT capacity. Notably, in December 2025, Mega DC also secured a separate 19MW lease, with options for 50MW more, with a customer reported to be Google, indicating strong market demand for its assets.

The lease significantly accelerates Nebius's global infrastructure rollout. The AI-focused cloud provider, which spun out from Yandex in 2024, recently revealed its current capacity is sold out following a landmark $3 billion deal with Meta in November 2025. The company has an aggressive target of reaching 2.5 gigawatts of capacity by the end of 2026, and this 80MW Israeli commitment is a critical step in that expansion strategy, strengthening its presence in the Middle East and its ability to serve compute-intensive AI workloads regionally and globally.

Source: datacenterdynamics