Azrieli Group Ltd., Israeli’s single largest real estate developer, has bought the land for a new Amazon data center, Globes has reported.
According to sources cited by Globes, Azrieli has acquired a 6.5-acre site near Netanya which is set to be the location for one of three news data centers in Israel that Azrieli will build and lease to Amazon.
The plot of land is located in the Tnuvot industrial zone east of Kfar Yona, near Netanya. The parcel cost Azrieli a little over $35 million-plus VAT. The company will construct a building encompassing tens of thousands of square meters in space for the new data center.
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Just last month Azrieli Group bought another plot of land for a different data center. That location encompasses 7.5 acres of land in the town of Shoham near Ben Gurion airport. Sources have also informed “Globes,” that Azrieli plans to buy the third lot for a data center at the Har Tuv Industrial Zone near Beit Shemesh.
So what exactly is a data center anyway?
Well, an Amazon data center is a place where the company develops its cloud infrastructure. Amazon states that it is continuously innovating the design and systems of its data centers to protect them from man-made and natural risks.
The company boasts that the “most highly-regulated organizations in the world trust AWS every day.”
It is important for Israelis to understand, however, that this will not be a warehouse dedicated to Amazon’s good for distribution. As such it will not in any way improve or increase Amazon’s services and deliveries offered to people in Israel.
Amazon is currently adding more cloud centers in countries around the world to improve its cloud services.
About Azrieli Group Ltd.:
Azrieli Group is Israel’s largest real estate group, which has built and operates Israel’s leading nationwide chain of income-producing properties (including shopping malls, offices, and senior homes), and is known for setting the highest standards of excellence and innovation in Israel. The Azrieli Group is constantly exploring new ways to expand and diversify, and its exceptional management team excels at adapting the Group’s assets to the ever-changing commercial landscape. The Group also holds 3.1% of Bank Leumi Le-Israel Ltd.
The Group was founded by the late Mr. David Azrieli, the renowned entrepreneur, architect, and businessman. The Azrieli family holds 55% of the Group, and the Azrieli Foundations (in Canada and Israel) hold 15% of the Group.
Ms. Danna Azrieli is the Group’s Chairman of the Board. The Group’s CEO is Mr. Eyal Henkin.
The Group held an IPO in June 2010 raising approx. NIS 2.5 billion, which was the largest-ever IPO on the Tel Aviv Stock Exchange. The Group is part of the Tel Aviv 35 index, which includes the thirty-five largest companies on the Israeli Stock Exchange, and is the only Israeli company included in the EPRA indices.
