Nebius, the Nasdaq-listed cloud and AI infrastructure provider, has agreed to take long-term data centre capacity in Israel as demand for AI compute keeps rising, CalcalisTech reported. 

Israeli developer Mega Or said its wholly owned unit, Mega DC, will build and operate two new facilities at an estimated construction cost of about US$880 million. 

Under the deal, Nebius will use two sites in Masmiyya and Beit Shemesh with a combined 80 MW capacity, which Mega Or described as its largest data centre contract so far. Once fully ramped, the sites are expected to deliver around NIS 300 million (about US$95 million) in annual net operating income for Mega Or, the report said. 

Headquartered in the Netherlands, Nebius has a market value of roughly US$23.3 billion and has been adding physical capacity as AI workloads pressure existing data centre supply.

The contract, signed between Mega DC and a Nebius subsidiary, runs for five years and includes an option to extend on the same terms.

Mega Or put the build cost for the two sites at about US$880 million, based on roughly US$11 million per installed megawatt, reflecting the higher price of AI-ready, high-density facilities. 

According to the report, of the 80 MW, 22 MW will go to Masmiyya, about half of that site’s planned capacity, while 58 MW will be deployed at Beit Shemesh.

Masmiyya is due for delivery in Q3 2026. Beit Shemesh is expected to come online in phases from Q3 2026 through Q1 2027.

The agreement is Nebius’s second with Mega Or. In May, Mega DC signed a separate deal with the same customer for 8 MW at its Modi’in data centre, which began operating in September and is forecast to generate NIS 35 million in annual net operating income.

The Nebius deal adds to a run of large data centre contracts it has signed recently. In November, Nebius entered a five-year agreement worth about US$3 billion with Meta to provide AI infrastructure. That followed a separate contract signed in September, valued at US$17.4 billion, with Microsoft.

Nebius has also begun its first deployment of NVIDIA Blackwell Ultra infrastructure in the UK, hosted at an Ark Data Centres site near London with on site power generation.