The data centre and digital infrastructure industry in Israel has transformed over the last decade, driven both by a local push for migration of data to secure, domestic cloud networks and a global repositioning of the region as a vital digital bridge between Europe and Asia.
The 2021 launch of Project Nimbus – a government initiative to deliver a single unified cloud infrastructure in collaboration with Amazon Web Services (AWS) and Google – has required a radical departure from standard data centre design, calling for innovation in high-density computing, security and future-proofed capabilities that can support advanced technologies and modern energy-intensive AI workloads.
Bynet Data Centers, a subsidiary of Israeli tech conglomerate the Rad Bynet Group, is one of the companies spearheading the state's digital infrastructure revolution. The business, founded in 2023, is strategically focused on delivering pioneering next-generation technologies including advanced cooling and power management in order to provide scalable and sustainable future infrastructure for local and global customers.
In line with this market shift, Bynet has seen significant growth in recent years. Under CEO Eli Moshe, the company has quickly expanded its portfolio of data centres from five to seven and is in the progress of building key new facilities in Jerusalem and Soham.
Eli has been CEO since the company was spun off from the Bynet Group, where he gained 12 years’ experience in data centres and infrastructure. He was Bynet Data Centers’ first employee and has been instrumental in driving its vision, mission and strategy from the outset, where the company entered the Israeli market as real estate players, contributing to lower prices and positively impacting the market.
His approach is underpinned by more than 25 years of experience in technology and data in Silicon Valley for companies including AWS, Hitachi Data Systems and NetApp – a period in which he has seen the industry transform at pace.
"I’ve touched every part of that data, cloud and infrastructure journey during my career, and I really understand the data environment and decision making that companies and our customers have to take,” he says. “When I was at NetApp, I never believed you would put data on a cloud, but that has changed so quickly, with most companies now taking a hybrid approach to their data – it’s transformed our strategic approach at Bynet.”
AI-led industry evolution
For years, growth in data centres was driven by a relatively linear approach based around storage requirements: disks got bigger, data volumes increased and organisations needed more space. The global pace of AI innovation and adoption, however, has forced builders and operators to shift their methodology.
“It’s been a revolution,” says Eli, “but we are now at the point where storage is not a challenge, compute is. And with that comes more difficult requirements around energy management, finding the land for large-scale projects, cooling and sustainability.”
Bynet's customer base of more than 120 organisations across its five operational data centres provides clear evidence of this shift, Eli says. Racks requirements that began at 5 kW are now closer to 30-40 kW, for example.
Moti Tau, Bynet’s Chief Technology Officer, is seeing the transformative nature of AI firsthand. Moti joined Bynet Data Centers in late 2024, after five years with the Bynet Group. Prior to this, he worked as a consultant on large-scale data centre projects and spent time at IBM.
“Around three years ago, when AI development really picked up, everything changed,” he says. “It meant that for companies like ours, growth was exponential and, from a technology perspective, everything needed a new approach – power, equipment, partners, cooling and the design of the data centres themselves. It also requires pace; the data centre you planned two or three years ago just won’t work in the future if you haven’t ensured every aspect is AI-ready.”
The technical demands extend beyond power density, says Moti. AI workloads behave differently from traditional computing in ways that break standard infrastructure assumptions. Traditional electrical systems interpret that kind of fluctuation as a fault and shut down, while cooling systems designed for steady-state loads can't respond quickly enough.
Jerusalem and Soham: designing for what comes next
Bynet's strategic response has been to design its next generation of facilities specifically for AI readiness. The company is developing two flagship sites in Jerusalem and Soham, both engineered to handle the power densities and variable loads that characterise modern AI workloads.
The company’s Jerusalem of Gold site acts as an AI innovation lab, designed specifically for testing and developing customer-led AI solutions. Typically this work includes stress testing extreme AI and GPU driven workloads and developing cooling technologies.
"A key part of the shift in my strategic approach was that we have to have a lab like this to ensure Bynet can meet customer demands and make the next generation of data centres we build AI ready,” says Eli. “It has to work that way. You cannot build a data centre and then retrofit it for the future. This lab process, development and innovation that Moti and our team carry out is essential if we are going to stay ahead in the market.”
Bynet’s Jerusalem of Gold facility is considered part of the digital backbone for Israel’s cloud computing needs, offering maximum security and survivability. Covering around 14,000 sqm it holds 1,650 racks and has an 8MW power capacity. The company is the only data centre firm to build in Jerusalem, also owning two other sites – Jerusalem of Silver and Jerusalem of Light.
It is currently also developing a 20MW data centre facility in Soham, due to open at the end of 2026.
“I plan every one of our sites to be AI ready,” says Moti. “Key considerations include how to effectively manage the increased power requirements of AI and being able to handle high and fast GPU and rack loads. It also means more advanced generators, working with the electricity board to ensure an uninterruptible power supply, cooling and chiller innovation and more. Close customer collaboration is really important throughout this process.”
Cooling and rapid temperature changes present a particular complexity. In this area, Bynet’s lab plays a crucial role. It currently houses three cooling systems including rear door heat exchangers, in-rack solutions and CDU-based liquid cooling. The systems can handle more than 200 kW per rack, well beyond current typical requirements but aligned with where the industry is heading. Two of the three primary systems come from Schneider Electric, reflecting a partnership Bynet has developed around cooling innovation.
"My first priority is to test everything," Moti says. "The next is to ensure our team understands every new system. Lastly, we give customers the opportunity to visit, to test and understand the systems we can deploy.”
This is an important distinction for the company. Rather than simply provide space and power, Bynet works with industry and customers in a role akin to that of a consultant.
"We are the first and only company in Israel to have this kind of lab,” Eli says. “We want to be seen as an advisor that truly understands the needs of the end user and then influences how the industry develops.
Sustainability through design and technology
Environmental considerations have shaped strategic infrastructure decisions at Bynet from the beginning. The company has installed rotary UPS and generator systems at its Jerusalem facilities that are designed to operate without diesel, cutting carbon emissions while maintaining tier three redundancy.
"Our dataset takes a lot of energy, so we have to be sustainable and to save as much energy and water as we can," Moti says. "It starts right from that initial plan if you are to make the data centre as efficient as possible."
Free cooling plays a significant role. Most of Bynet's chillers can use ambient air rather than mechanical cooling for significant portions of the day and night. Jerusalem's cool climate helps, with cold night time temperatures reducing energy use at the company’s sites.
"We do everything we can to reduce our electricity and energy use, but I also design our water systems to save as much water as they can,” says Moti. "We’ve implemented reverse osmosis systems to purify water for cooling and operational purposes and are already seeing savings from that.”
