In a year marked by economic strain in Israel, five veteran business leaders have capitalized on war-driven demand and the burgeoning AI sector. This group, mostly comprised of individuals over 70, has significantly reshaped markets across various industries, including energy, real estate, and defense. For instance, Idan Ofer’s OPC Energy saw a 250% rise in stock value, largely attributed to increased electricity demand from AI companies, while Michael Federmann’s Elbit Systems became the largest company on the Tel Aviv Stock Exchange, benefitting from rising global demand for defense technologies amid geopolitical tensions. These examples highlight how certain sectors have thrived amidst broader economic challenges in Israel.
Google: Google provides cloud computing and AI services requiring extensive data center infrastructure. It signed a lease with Mega Or for server farm space in Israel. The deal supports expansion of AI capabilities amid rising demand.
Nebius: Nebius offers AI cloud and infrastructure services. It entered a data center lease agreement with Mega Or for server farms in Israel. The partnership aids its growth in AI hosting.
Nvidia: Nvidia produces GPUs critical for AI computing and data center operations. It partnered with Tower Semiconductor for photonics chips enhancing high-speed communications. The company is leasing server farms from Mega Or in Israel.
Mega Or: Mega Or is a real estate developer specializing in logistics and industrial properties. It capitalized on the AI boom by preparing sites for data centers, signing deals with Google, Nvidia, and Nebius. The firm acquired strategic land for future server farm expansion.
Isracard: Isracard operates as Israel’s largest credit card company. Delek Group took a major stake to bolster its financial services expansion. It supports plans to merge with digital banking for broader offerings.
Idan Ofer: Idan Ofer controls OPC Energy, Israel’s largest publicly traded private electricity producer operating natural gas power stations domestically and abroad. The company benefits from heightened electricity needs fueled by AI data centers, particularly in the US. Ofer’s strategic timing in building capacity pre-AI boom has driven recent market gains.
OPC Energy: OPC Energy produces electricity through natural gas power stations in Israel and the US. It supplies a notable portion of Israel’s power and sees rising demand from AI companies. The firm’s early infrastructure buildout aligned with the surge in data center energy needs.
Delek Group: Delek Group is an energy and investment conglomerate shifting focus back to finance. It acquired significant stakes in Isracard and related assets like Fly Card and Ash digital bank. The strategy targets competition with traditional banks via digital and payment integration.
Zahi Nahmias: Zahi Nahmias leads Mega Or, a real estate firm focused on developing logistics centers and data centers. He navigated a prior investment setback with Discount Investment Corporation by pivoting to AI-driven server farm development, securing leases with Google, Nvidia, and Nebius. This move positioned Mega Or to thrive amid surging demand for AI infrastructure in Israel.
Elbit Systems: Elbit Systems develops advanced defense technologies including drones, rocket systems, and missile interception. Geopolitical tensions have increased global demand for its products. The firm secured its largest-ever contract with an international client.
Yitzhak Tshuva: Yitzhak Tshuva controls Delek Group, traditionally an energy firm now aggressively expanding into finance. The group acquired stakes in Isracard, Fly Card, and the digital bank Ash to challenge traditional banks with integrated payment and digital services. Tshuva aims to build a comprehensive financial platform leveraging regulatory shifts.
Michael Federmann: Michael Federmann controls Elbit Systems, Israel’s leading defense manufacturer producing drones, missile defense, and artillery systems. The company has seen boosted demand from ongoing conflicts and global tensions, securing a major international weapons contract. Elbit continues to innovate in areas like laser-based interception systems.
Phoenix Insurance: Phoenix Insurance is a major Israeli insurer. Yitzhak Tshuva exited his holdings in 2014 due to regulatory constraints. The sale marked his temporary withdrawal from finance before recent re-entry via Delek.
Russell Ellwanger: Russell Ellwanger serves as CEO of Tower Semiconductor, a specialty chipmaker emphasizing silicon photonics for data centers. Under his leadership, the company partnered with Nvidia for high-speed communication chips and expanded power management tech amid AI growth. Tower has positioned itself as a key supplier to major data center operators.
Tower Semiconductor: Tower Semiconductor manufactures specialized semiconductors, including silicon photonics chips for efficient data transfer in AI data centers. It announced a partnership with Nvidia and expanded photonics production capacity. The company supplies components to top global manufacturers.
Discount Investment Corporation: Discount Investment Corporation is a holding company previously burdened by debt after acquisition by Mega Or. It forms part of Zahi Nahmias’ portfolio that underwent restructuring amid rising rates. The investment contributed to lessons applied in the pivot to AI infrastructure.
Finance Sector Shift: Energy groups are acquiring credit card and digital banking assets to challenge incumbents amid regulatory evolution.
AI Data Center Demand: War-related strains have contrasted with booming AI needs driving demand for electricity, real estate, and specialized chips in Israel.
Defense Sector Resilience: Global tensions and local conflicts have elevated demand for defense technologies from established contractors.