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NVIDIA to launch $500 million AI data center in Israel

The 10,000 square meter facility will be one of the largest and most advanced data-center labs in Israel, according to the company.

Nvidia CEO Jensen Huang speaks about Project Digits personal AI supercomputer for researchers and students during a keynote address at the Consumer Electronics Show (CES) in Las Vegas, Nev., on Jan. 6, 2025. Photo by Patrick T. Fallon/AFP via Getty Images.
Nvidia CEO Jensen Huang speaks about Project Digits personal AI supercomputer for researchers and students during a keynote address at the Consumer Electronics Show (CES) in Las Vegas, Nev., on Jan. 6, 2025. Photo by Patrick T. Fallon/AFP via Getty Images.

American technology giant NVIDIA announced on Wednesday that it is establishing a new artificial intelligence research and engineering data center in Israel.

The Santa Clara, California-based corporation said that the $500 million, 10,000 square meter facility will be one of the largest and most advanced data-center labs in Israel.

The data center, which is currently under construction near the northern Israeli city of Yokneam, focuses on advancing next generation data technologies, including networking hardware, software, CUP design and AI applications.

It is set to begin operations in the first half of the year.

The company has a large R&D presence in Israel, where thousands of employees run seven labs.

Meanwhile, U.S. President Joe Biden has included Israel in a restrictive category of countries for the export of advanced graphics processors, in a blow for the industry.

The move, which was taken during the last week of his administration and is due to take effect in 120 days, seeks to balance U.S. national security concerns with economic interests, and could hamper 120 countries, including Israel, from competing in AI.

NVIDIA on Monday condemned the move as “sweeping overreach” by the administration.

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