Oppenheimer rises: Tech demand pushes Israel toward nuclear energy solutions

Israel exploring nuclear energy through advanced Small Modular Reactor technology; reactors, favored by tech giants like Google and Microsoft for powering data centers, could provide  sustainable energy solutions in energy independence plans by 2050

Tal Shahaf|
The State of Israel plans to establish a nuclear power plant for electricity production. The proposed location for the facility is the Shivta area in the Negev Desert, although an alternative option is under consideration: constructing the plant in the Mediterranean Sea, a few miles west of the greater Tel Aviv area.
Currently, technological trials are underway to develop next-generation reactors, but a key geopolitical question looms: Can Israel build a nuclear power plant despite not being a signatory to the Nuclear Non-Proliferation Treaty (NPT)?
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חשמל אילוס אילוסטרציה
חשמל אילוס אילוסטרציה
(Photo: Shutterstock)
According to the plan, the nuclear power project will be announced next year, with construction beginning in 2029. By 2037, the plant is expected to supply electricity to the national grid, with the aim of nuclear energy contributing half of Israel's electricity needs by 2050.
“This will ensure Israel’s energy independence and economic prosperity for future generations,” reads a document prepared by the Energy and Infrastructure Ministry and the National Security Council. The plan has garnered support from all recent heads of the Atomic Energy Committee, including current chair Moshe Edri and his past three predecessors.
Energy and Infrastructure Minister Eli Cohen described nuclear energy as critical to Israel’s energy future. “It will help diversify Israel’s energy sources and provide a vital solution to the country’s energy needs in the coming decades,” he said. Cohen also pledged to present the government with a professional assessment on the feasibility of constructing a nuclear facility in the coming months.
The document highlights a unique opportunity to secure international support for Israel’s nuclear ambitions, citing the global shift toward nuclear energy for electricity production. Thirty countries have announced plans to triple nuclear output using advanced technologies.
Additionally, geopolitical developments, such as the potential return of Donald Trump to the White House, continued U.S. Congressional and Senate support for Israel, and possible normalization agreements with Saudi Arabia, could create the diplomatic momentum needed to overcome challenges related to Israel's non-signatory status to the NPT.
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The Inter-Ministerial Committee for Reviewing Natural Gas Policy and Strengthening Energy Security recently endorsed nuclear energy as a viable option for Israel. The committee, led by Energy Ministry Director-General Yossi Dahan, also recommended expanding natural gas exports while integrating alternative energy sources, with nuclear power among the top priorities.
Minister Cohen noted that electricity demand in Israel is growing rapidly, at approximately 4% annually. This growth stems from increased household and industrial usage, as well as new energy consumers like electric vehicles and the burgeoning number of data centers. Cohen warned that Israel’s current gas reserves are expected to last only another 22 years. “If new gas fields are discovered, that would be excellent. If not, nuclear energy can be a viable solution,” he added.
Nuclear power offers several advantages, including its status as a green energy source that emits no carbon into the atmosphere. It also eliminates the need for global fuel transportation and has a production cost comparable to gas and cheaper than solar panels. However, concerns remain, such as the potential for catastrophic accidents like those at Chernobyl or Fukushima, as well as Israel’s unique vulnerability to missile or drone strikes on a nuclear facility.
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השר אלי כהן בביקור באסדה בחודש פברואר האחרון
השר אלי כהן בביקור באסדה בחודש פברואר האחרון
Energy Ministry Eli Cohen
(Photo: GPO)
The Nuclear Non-Proliferation Treaty, first signed in 1968 and ratified by 189 countries in 2007, remains a significant hurdle. Israel is one of five nations not signed onto the treaty, alongside India, Pakistan, North Korea, and South Sudan. While Israel has long maintained a policy of ambiguity regarding its nuclear capabilities, former Prime Ministers Ehud Barak and Ehud Olmert have made explicit references to the country’s nuclear program.

Major hurdles on the way to nuclear energy procution

The global resurgence of nuclear energy is largely attributed to advancements in technology. Small Modular Reactors (SMRs) are the latest innovation, enabling faster construction and reducing risks associated with older reactor designs. SMRs consist of compact, standalone power units that can be combined to achieve desired output levels.
SMRs are increasingly popular among major tech companies, including Amazon, Google, Microsoft, and Meta, as a private power supply for their data centers. Companies manufacturing these reactors have seen their stock values surge, reflecting growing interest.
Data centers, critical to cloud services and artificial intelligence, are insatiable electricity consumers. Centers in Israel typically require 20–30 megawatts, while U.S. mega-centers consume 100 megawatts or more. The International Energy Agency (IEA) projects that data centers will account for 32% of global electricity consumption.
Several tech giants are already investing in nuclear energy. Microsoft plans to use nuclear reactors for 35% of the power for its data centers in Virginia and intends to reopen the Three Mile Island reactor by 2028. Google has announced plans to purchase electricity from Kairos Power’s small reactors starting in 2030, and Amazon is building a data center near a nuclear plant in Pennsylvania while investing in X-energy’s SMRs.
In Israel, the data center sector is expanding rapidly, with dozens of facilities under development. This week, Nvidia announced plans for a 10,000-square-meter AI development data center with a 30-megawatt capacity. These join existing sites from companies like MED1 and Binat Data Centers. Amazon and Google, which won the government’s Nimbus cloud tender, have also established significant centers in Israel, while Microsoft and Oracle, despite losing the tender, have built competing facilities.
Amid rising demand, Israel is considering small nuclear power plants as a potential solution. While government approval is still pending, the groundwork for this shift is already underway. Israel Electric Corporation CEO Meir Spiegler stated, “We are exploring technologies through an innovation unit. Any energy production alternative that improves efficiency, reduces pollution, and enhances reliability is welcome, whether it’s hydrogen, energy storage, or nuclear power. What is possible in Europe can also happen in Israel.”
However, Spiegler emphasized that the ultimate decision lies with regulators, including the Electricity Authority and the Ministry of Energy. For now, efforts to integrate nuclear power into Israel’s energy strategy await further technological and policy breakthroughs.
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