Israeli renewable energy company Solaer Renewable Energies is expanding into the data center market, announcing plans to develop an AI-focused facility in Chile’s Atacama region powered by renewable energy. The company said its Chilean subsidiary has signed a long-term lease agreement for 20,000 dunams (about 5,000 acres) of land in northern Chile, where it plans to develop, build and operate a data center.
The site is located in the Atacama Desert, an area known for some of the highest solar radiation levels in the world. Solaer said the planned facility will combine renewable power generation, energy storage and desalinated water infrastructure.
The move comes as demand for data center capacity rises globally, driven by the rapid expansion of artificial intelligence applications and the need for large-scale computing infrastructure.
“Solaer’s entry into the data center sector reflects the growing connection between renewable energy infrastructure and the AI economy,” CEO Alon Segev said. “The Atacama region’s combination of solar resources, access to the Pacific Ocean and existing energy and water infrastructure creates an opportunity to integrate green energy production, desalination and data center operations.”
The project is planned near Solaer’s existing ENAPAC initiative, which includes a desalination facility, approximately 400 kilometers of water transmission lines, a 197-megawatt solar installation and 500 megawatt-hours of energy storage capacity.
According to the company, the lease agreement includes an initial 36-month evaluation period covering feasibility studies, permitting and development. If the project moves forward, the operational lease period is expected to last 25 years, with the possibility of extensions up to 40 years.
Solaer's CEO, Alon Segev
(Photo: Tomer Jacob)
During the evaluation phase, Solaer’s subsidiary will have the option to cancel the agreement without penalties if the project is determined to be unfeasible.
Solaer said the growing AI industry is creating demand for locations capable of supporting large-scale data centers requiring hundreds of megawatts and potentially gigawatts of electricity, alongside access to water, land and supporting infrastructure.
The company believes locations that combine renewable energy, water availability and large areas of developable land are becoming increasingly scarce as power grids face growing pressure worldwide.
Solaer said its infrastructure assets could make the company an attractive partner for data center operators, cloud providers, AI developers and infrastructure investors seeking alternatives to traditional power sources.
Founded in 2009, Solaer Renewable Energies is an Israeli public company involved in renewable electricity generation, energy storage and desalination projects. The company operates in Israel, Spain, Italy, Poland and Chile.