Due to power grid overload in Israel, connection of new data centers has been suspended

To date, the power grid has already committed to providing data centers with about 1,500 megawatts of power. If all these projects are implemented, they will account for about 10% of Israel’s electricity consumption by the beginning of the next decade. According to the regulator, this will put the country among the world leaders in the concentration of data centers.

The Electricity Authority explained that the temporary freeze is necessary to review the rules and assess the real capabilities of the network. Otherwise, the regulator would have to reject almost all new applications.

The decision calls into question the government’s plans to accelerate the development of this industry. National Economic Council Chairman Avi Simhon is pushing a bill that would recognize data centers as national infrastructure and make them easier to plan.

However, as Globes notes, the strained power grid, suffering from years of underinvestment, may not be ready for a massive influx of new projects.