KKR sells Petah Tikva server farm to Nofar Energy for about $85 million

The American private equity fund KKR is selling its server farm in Petah Tikva to Nofar Energy for about $85 million. The deal is taking place before the facility's completion, which KKR announced in the summer of 2021. The facility includes a shell with existing electrical connections, and Nofar will need to complete the equipment.

The American private equity fund KKR is selling its server farm in Petah Tikva to Nofar Energy for about $85 million, as revealed to Globes. The deal is taking place before the facility's completion, which KKR announced in the summer of 2021 with an estimated budget of $150-180 million. Over the years, the fund lost interest in the facility, now considered relatively small, and in recent years held negotiations with most server farm developers in Israel, including Moti Ben Moshe, Bynet, NED, and the Nadav Babila Group. The facility spans about 7 dunams, with a shell built by Ashtrom, and includes existing electrical connections of 16 megawatts and water and sewage connections. Nofar will need to complete the server and chip equipment with an additional investment of tens of millions of dollars. The acquisition occurs amid an electricity shortage in the industry, after the Electricity Authority stopped issuing new electricity permits until the end of the year. KKR invested about $70-75 million in building the shell through its subsidiary GTR, and is making a modest profit after five years. GTR negotiated with most developers, but many could not or did not want to meet the high price. GTR stated it is committed to high standards of professionalism and integrity, while Nofar Energy has not yet responded.