Nvidia Receives Dozens of Site Offers for Planned AI Campus in Israel

Global chip giant Nvidia is moving forward with ambitious plans to significantly expand its footprint in Israel, triggering a flurry of land proposals from various municipalities and private entities across the country, according to sources familiar with the matter.

The tech powerhouse, headquartered in Santa Clara, California, recently issued a formal request for information (RFI) aimed at securing a location for a massive new campus near its existing facilities in northern Israel. The proposed development is expected to cover up to 180,000 square meters and may involve an investment worth billions of dollars. Industry insiders suggest the project could create several thousand new jobs.

Nvidia, known for its cutting-edge AI processors, first entered the Israeli market in 2020 following its $6.9 billion acquisition of Mellanox Technologies. The company’s current Israeli operations are centered in Yokne'am, a tech-centric city near Haifa, where it continues to grow its influence in the local high-tech landscape.

Although Nvidia has refrained from making public statements beyond its initial RFI, interest from across Israel has been substantial. One individual with direct knowledge of the situation said the company has received “an overwhelming number” of site proposals, extending far beyond the Haifa region.

Haifa's city officials have confirmed their participation in the process. “We are actively working on a compelling offer for Nvidia,” a municipal representative said. “Haifa holds great strategic value and is well-positioned to support a project of this scale.”

Nvidia’s expansion efforts come amid a global AI infrastructure race involving major tech players such as Microsoft, Meta, Alphabet, and Tesla. The surge in demand for high-performance AI data centers has amplified interest in Nvidia’s advanced chip technologies, driving up the need for additional production and research capacity.

Israel’s reputation as a leading hub for innovation and engineering has made it an attractive base for Nvidia's long-term growth strategy. Since acquiring Mellanox, the company has nearly tripled its local workforce. A source close to the company noted that Mellanox's contributions helped generate approximately $13 billion in revenue for Nvidia last year, though the figure has not been officially confirmed.

Today, Nvidia employs around 5,000 people in Israel and continues to invest in the region through strategic acquisitions and infrastructure projects. Among its major achievements is the construction of Israel’s most powerful AI supercomputer, which served as a reference model for Elon Musk's Colossus supercomputer initiative.

Dror Bin, CEO of the Israel Innovation Authority, emphasized the significance of Nvidia’s latest move. “This expansion shows Nvidia’s strong commitment to Israel,” Bin said. “They view their presence here not just as an operational necessity, but as a core part of their long-term strategy.”

While Nvidia scales up, longtime rival Intel—another major tech player with deep roots in Israel—is undergoing a different trajectory. Intel, which has been operating in Israel since 1974 and employs over 9,000 people, has begun to downsize as part of a global restructuring. Although exact figures remain undisclosed, Israeli media reports suggest that several hundred local jobs may be affected.

The deadline for submitting land proposals to Nvidia is set for July 23, with municipalities and landowners racing to present compelling bids. Once the window closes, Nvidia will begin reviewing the offers, focusing on strategic value, proximity to its current operations, and potential for long-term growth. The selected location will form the foundation for a large-scale development expected to play a central role in the company’s regional operations.

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