The race for artificial intelligence dominance has increasingly come to be seen as a defining factor in shaping the world’s geopolitical future. As the stakes rise, leading powers such as the United States and China are shifting focus from exclusively innovating the technology itself to securing the physical infrastructure and supply chains needed to control the entire AI pipeline.
Modern AI models require enormous industrial systems linking everything from research and development labs to rare-earth mining operations, semiconductor manufacturing and data-center construction. The sprawling scale of this network makes it increasingly vulnerable to industrial espionage and disruption by geopolitical rivals, compounding the logistical complexity of maintaining secure and reliable access at every stage of development.
To address these vulnerabilities, a recent report by Michael Doran and Zineb Riboua of the Hudson Institute indicates that American and Israeli policymakers are advancing “Project Spire,” an initiative to establish a highly secure AI research, development and manufacturing campus across three sites in the western Negev Desert.
According to the report, the facility’s goal is to create an operational zone immune to Chinese espionage, allowing for secure AI development with full intellectual property protection.
“In the contest to neutralize China’s espionage apparatus, Project Spire offers the foundation for enduring American primacy,” Hudson Institute analysts Michael Doran and Zineb Riboua wrote. “By anchoring the first secure AI base in Israel, the Trump administration can accelerate breakthroughs and export an innovation model that allies can adopt.”
A spokesperson for the U.S. State Department told JNS that it could not confirm details regarding Project Spire at this stage.
Pax Silica and Project Spire
Project Spire is part of a broader economic-security strategy known as the “Pax Silica” framework. Initiated by the State Department as its flagship program on AI development and supply-chain security, Pax Silica is an international coalition designed to reduce reliance on Chinese infrastructure and create a secure advanced-tech ecosystem among allied nations.
The framework spans everything from the extraction of critical minerals to the construction of large-scale data centers.
The diplomatic groundwork for the technological partnership between the United States and Israel was formalized on Jan. 16, 2026, in Jerusalem. During a ceremony at the ancient ruins of the City of David, officials signed a joint statement launching a strategic partnership in AI, semiconductor design, space technology and energy production.
Brig. Gen. (res.) Erez Askal, director of Israel’s National AI Directorate, said at the time that “we have been working vigorously to create partnerships with the key nations leading the global AI industry, foremost among them our great friend, the United States.”
Emphasizing the broader vision for trusted supply chains and infrastructure, U.S. Under Secretary of State for Economic Affairs Jacob Helberg added that “power is measured by technology. The ability to design and manufacture critical components. The ability to secure and scale advanced systems. The ability to turn knowledge into production.”
“Secure supply chains are the lifelines of economic security and sovereignty, and we are determined to harden them,” Helberg said. “That is what Pax Silica is about.”
The reported blueprints for Project Spire outline a facility of unprecedented scope. Doran and Riboua wrote that the campus would combine “the security of an American military installation and the creative output of a Silicon Valley hub.”
By developing a fully integrated “end-to-end” infrastructure, the project aims to eliminate vulnerabilities at traditional supply-chain transit points. Proposed infrastructure includes massive data centers optimized for AI training, independent energy grids, localized semiconductor fabrication floors and specialized research laboratories.
AI in the Negev
Building a massive AI campus in the Negev Desert presents both environmental challenges and advantages. Data centers generate immense heat, and operating them in desert climates forces cooling systems to work harder, resulting in significantly greater energy consumption.
Power systems researcher Hatem Sindi observed that “in Jeddah or Riyadh, where outdoor temperatures may reach 48 degrees Celsius and rarely drop below 25 degrees even at night, traditional air-cooled data centers struggle to achieve PUE below 1.8.”
Cooling the facilities also requires large amounts of water. A single Meta data center in the Arizona desert, for example, consumes approximately 56 million gallons of potable water annually.
To address these issues, the Negev site would rely on specialized local infrastructure. The nearby Ashalim Plot B Solar Thermal Power Station converts desert sunlight into 121 megawatts of electricity, helping offset the energy burden created by the extreme climate. Water scarcity would also be mitigated through advanced wastewater-recovery systems already deployed in the area.
Beyond environmental considerations, the Negev offers geographic, military and economic advantages. Its vast open spaces allow for hardened physical perimeters difficult to establish in densely populated urban areas.
Israel also has extensive experience securing highly sensitive infrastructure in the desert, most notably the Shimon Peres Negev Nuclear Research Center near Dimona. The Defense Ministry continues to leverage the region through its “Move to the South” initiative, including the construction of the “Kiryat Hamodi’in” intelligence and communications campus.
Israel’s broader technology ecosystem also makes it an attractive location for such an initiative. More than 400 multinational corporations operate R&D centers in Israel, including Intel and Microsoft.
NVIDIA, currently the world’s most valuable company and a leading AI hardware developer, has more than 5,000 employees in Israel—its largest workforce outside the United States. The company recently announced plans for a multibillion-dollar campus in Kiryat Tivon expected to accommodate 10,000 workers.
At the same time, the Israeli government is actively expanding domestic AI infrastructure. On May 17, 2026, the government approved a long-term plan to secure 5,000 advanced AI processors annually through 2032. The Israel Innovation Authority has also launched a national AI supercomputer operated by cloud provider Nebius.
The cost-benefit equation
For Israel, Project Spire could bring major economic and technological benefits. Supporters say the project would funnel massive infrastructure investments into Israel’s southern periphery, helping develop economically lagging regions while creating jobs and secondary business opportunities.
The concentration of advanced research and access to U.S. AI expertise could also strengthen Israel’s broader startup ecosystem and provide researchers with computing power and infrastructure previously unavailable domestically.
On a geopolitical level, the project would further deepen the U.S.-Israel alliance while reinforcing Israel’s position as a key player in the global AI race.
At the same time, critics warn that the initiative could come with significant trade-offs. According to the report, Project Spire’s framework would place ownership of core intellectual property—including frontier AI models and next-generation chip architectures—under strict American control.
This marks a sharp departure from earlier bilateral models such as the Israel-U.S. Binational Industrial Research and Development Foundation, which historically encouraged shared IP structures between Israeli and American companies.
By retaining exclusive ownership, Washington would preserve its strategic advantage while utilizing Israel’s talent pool for early-stage research, engineering and testing.
The report also warned that the project could deepen Israeli dependence on Washington and raise sovereignty concerns. According to the proposal, long-term land leases would be granted by Israel for exclusive American use, creating what some critics fear could become a heavily restricted technological enclave operating under U.S. security protocols inside Israeli territory.
Others caution that concentrating top Israeli cyber and AI talent inside an American-controlled ecosystem could create a localized brain drain, pulling expertise away from local startups and defense agencies.
Doron Levin, CEO and founder of the Tel Aviv-based AI cybersecurity startup Harpsicord, described the dilemma as a double-edged sword.
“National success in AI is more than just about economic development. It is a question of security,” Levin said. “If we don’t develop our capabilities, we will fall behind and be exposed to a new class of threats with no ability to protect ourselves.”
“However, there is no such thing as a free lunch,” he added. “If we go in with the Americans, there are going to be trade-offs on the other side, like with any investor. We need to be clear about whether we can do it ourselves.”
