Israel and the US have reached understandings on the construction of a large technological park in the south of Israel, according to Israel publication Globes. This is part of a strategic cooperation agreement on AI signed in January. The MOU was signed by the head of the Israel’s National AI Directorate, Brigadier-General (Res.) Erez Eskel, and the US Under Secretary of State for Economic Affairs Jacob Helberg. It includes a plan to allocate 16,000 dunams (4,000 acres) to the US for a park, which will be constructed in the Negev or in the Gaza Strip border area, to be called Fort Foundry One.
Globes claims to have seen the text of the MOU, under which Israel will grant the US a 99-year lease on the land. Although the area will remain under Israeli sovereignty, day-to-day running will be by the US which will provide most of the investment. US and Israeli technology companies will work side by side in the park, with the aim of setting up a global centre for chip production, advanced computing, and AI development.
As to energy infrastructure, the huge power demands of data centres and AI computer systems require a large, stable energy solution, and the possibility is being considered of constructing a NPP at the site. While the official MOU for the Negev AI data centre remains somewhat vague, referring to a “high-intensity energy infrastructure”, Neutron Bytes said it clearly is pointing to small modular reactors (SMRs) of 50-300 MWe. “Due to the location in the extremely dry Negev desert, an advanced design, such as an HTGR [High Temperature Gas-cooled Reactor), which does not require cooling water to operate, is likely to be chosen should the project reach a stage where a reactor design would be selected for this site.”
However, this is complicated by the fact that Israel is not a signatory to the Nuclear Non-Proliferation Treaty (NPT), which allows the construction of nuclear reactors for civilian purposes. According to the Nuclear Threat Initiative: “Although Israel has possessed nuclear weapons since the 1960s, it maintains a policy of nuclear opacity, never officially confirming the existence of its nuclear weapons programme and arsenal. Accordingly, Israel has never signed the NPT.” Globes suggests that this could lead to a unique model in which the reactor operates under US regulation and supervision, despite being located on Israeli territory.
The agreement also includes an Israeli commitment to expedite regulation. Licensing and permits processes for the park site will not take more than 120 days, a much shorter timetable than the normal standard in Israel for projects of this size.
The joint initiative is part of a broad international framework launched by the Trump administration called “Pax Silica”, a coalition of seven leading countries in technology, the aim of which is to secure supply chains of semiconductors and AI. Israel joined the initiative in December and was the first country to sign a bilateral agreement with the US in this framework. Other countries in the coalition are Qatar and the UAE. Helberg arrived in Israel after signing similar agreements in Doha and Abu Dhabi. He said that Israel was an “anchor partner” in the effort, thanks to its technological ecosystem and its ability to produce “asymmetric results” in relation to its geographical size.
Globes noted that the MOU “at this stage, in legal terms, it is a matter of a declaration of intent and not a binding agreement”. The document states that it creates no legal rights or obligations, and that any legislation required for its implementation will be subject to local legal and parliamentary procedures.
However, it is based on a January “Joint Statement of the United States and Israel on the Launch of a Strategic Partnership on Artificial Intelligence, Research, and Critical Technologies”.
This says that the US and Israel “have affirmed a new Strategic Framework for Cooperation to deepen and formalise their long-standing collaboration in critical technology sectors”. The initiative “represents a cornerstone of the Pax Silica partnership, designed to secure critical technology frontiers and foster the next generation of scientific advancement”. It aims “to advance economic growth, create jobs, and enhance security through technological superiority”.
Through the partnership, the US and Israel “intend to continue their deep, durable partnership through joint research, development, and investment in the fields of artificial intelligence (AI), energy, advanced computing technologies, space, edge innovation, and semiconductors”. The partnership “includes renewed focus on protection of sensitive technologies to facilitate a secure and trusted research environment”. Among the key areas of cooperation is new energy sources: “collaborative research projects in efficient and advanced energy technologies, including battery storage, grid optimisation, and other cutting-edge energy systems”.
The Israeli Ministry of Energy’s 2050 roadmap, released in June 2025, officially includes a Nuclear Scenario as one of its three primary paths to achieving net-zero emissions. While the Fort Foundry One park is the most recent development, the Israeli government has long maintained a reserved site for a commercial nuclear plant near Shivta in the Negev. In May 2025, regional planning committees reviewed proposals for a commercial station at Shivta, though it faced strong local opposition. This remains a secondary option or potential site for a larger-scale grid-connected plant, whereas SMR plans are currently linked to the immediate needs of the AI tech park.
