Israeli Energy Company Obtains License to Lay Submarine Fiber Optic Cable from Ashdod to Europe

SadaNews Economy Translation - The Israeli energy company "Dalia" has received a license from the Ministry of Communications to establish a landing station for a submarine fiber optic cable in the "Ashkelon" complex near the Port of Ashdod, according to SadaNews Economy's translation from the Hebrew economic newspaper "Globes."

According to estimates, the company intends to lay a submarine cable through self-financing or in partnership with European entities, without the intention, at this stage, to utilize or host other submarine cables that are still in planning and approval stages, including a cable from "Hot-Maxis" in collaboration with a group of Greek telecommunications operators (EMC), or a cable from the "Keystone" group and businessman Kobi Richter (TEAS).

The submarine cable will be used for data transmission and storage in a server complex that "Dalia" is building in the region, with a capacity of up to 200 megawatts and an estimated cost in the billions of shekels. This cable is expected to enable high-speed data transmission to other data centers outside the country, according to SadaNews Economy's translation.

The server complex is set to function primarily as a "factory for artificial intelligence," a facility dedicated to training and operating artificial intelligence models, a field that requires ultra-high-speed communications infrastructure, especially for communication with distributed data centers around the world.

As the planning and financing stages for the submarine cable progress, alongside the construction of a power generation station and a server center, the company will explore the possibility of opening the cable's usage to the local telecommunications network. However, this step will require applying for a license as a telecommunications operator.

According to SadaNews Economy's translation, the company is considering scenarios to extend the cable route eastward, either via a land path passing through Jordan to Saudi Arabia or via the Red Sea. However, this option is deemed unrealistic at the current stage, given the current geopolitical conditions and the deterioration of relations between Israel and Saudi Arabia, with the latter joining a regional axis led by Turkey and Qatar.

It is worth noting that "Dalia" had purchased the Ashkelon power generation station in June 2024, and is currently implementing a project exceeding 10 billion shekels to establish a new power station with a capacity of 850 megawatts, alongside a server complex with a capacity of up to 200 megawatts.

The proximity of data centers to the power generation station, cooling channels relying on seawater, and a submarine fiber optic cable offer an integrated infrastructure that allows handling vast amounts of data at high speeds, which could attract companies that rely on proximity to data centers, such as high-frequency trading firms and technology companies specializing in artificial intelligence.

Nevertheless, the implementation of the submarine cable project will not commence before "Dalia" obtains the approval of the Planning Authority, which currently tends to focus on landing points for submarine cables in existing locations such as Haifa and Tel Aviv. In contrast, the Ministry of Communications adopts a different approach, calling for the distribution of landing points for cables along the coast, in an effort to reduce reliance on a limited number of critical sites.