Nvidia is planting its roots deeper in Israel. BST Group has been commissioned to build a new office tower for the chipmaker in the northern Israeli city of Yokneam, a project worth NIS 170 million (about $47 million at current exchange rates).
Partial handover of the tower is expected to take place in 2027, with full occupancy in 2028.
Nvidia’s expanding Israeli footprint
Nvidia previously signed a 10-year lease agreement worth NIS 230 million with Melisron for 29,000 square meters in the same area. In total, Nvidia’s footprint in Israel now includes more than 68,000 square meters in Yokneam.
The company plans to build a massive 160,000 square meter campus in nearby Kiryat Tivon, a facility designed to eventually accommodate 10,000 employees.
melanox connection
In 2019, Nvidia acquired Mellanox Technologies for $6.9 billion. Mellanox, headquartered in Yokneam, specializes in high-performance networking technology, the type of infrastructure that connects graphics processing units in data centers and makes large-scale AI training possible. The acquisition gave Nvidia important technology and a large Israeli workforce.
What does this mean for investors?
Between the current 68,000 square meter campus in Yokneam and the planned 160,000 square meter campus in Kiryat Tivon, NVIDIA is building capacity for a workforce that could number in the tens of thousands in Israel alone. BST Group secures a NIS 170 million construction contract, Melisron has a NIS 230 million long-term lease, and northern Israel’s broader technology corridor gets another major tenant doubling down.
