Azrieli to invest €1 billion in Norwegian data center campus
80-megawatt project lifts shares as investors focus on long-term NOI growth.
Azrieli Group will build a data center campus in Norway, with an investment estimated at €1 billion. The campus, with a planned capacity of 80 megawatts, is expected to generate annual net operating income (NOI) of €117 million (approximately NIS 440 million) for Azrieli, assuming full occupancy. Following the report, Azrieli’s shares on the Tel Aviv Stock Exchange jumped by more than 8%, on high trading volume.
Azrieli, through its subsidiary Green Mountain, which coordinates its data center activities, has entered into an agreement with an international technology company to provide data center services.
The agreement is set for 15 years, with an option to extend it for an additional 15 years. The company is currently in discussions with financing bodies regarding the funding of the project.
Completion of the first phase of the project, including the provision of services with a capacity of 20 megawatts, is scheduled for the end of March 2027. Azrieli noted that construction is conditional on receiving the relevant regulatory approvals and permits, and that the start of service provision on the planned date is contingent on the facility being connected to the electricity grid.
Regulatory approvals, or more precisely, the lack thereof, were also behind the suspension of negotiations that Azrieli conducted until March with another international technology company regarding the construction of an additional data center campus in Norway, with a planned capacity of 120 megawatts.
That deal was described by the company as substantial, but the Norwegian partner failed to obtain the required building permits from local authorities for the land designated for the project. At the time, investors reacted sharply: Azrieli’s share price fell by 8% following the report on the suspension of talks, and declined by an additional 2% the next day.
The current agreement marks the second-largest deal for Green Mountain and Azrieli in the data center sector, following a March 2023 agreement to build a 90-megawatt campus for TikTok, also in Norway.
That campus began operating at partial capacity in the third quarter of 2024 and has since reached full capacity. It drove a sharp improvement in the performance of Azrieli’s data center segment and served as the company’s primary growth engine over the past year.
In the third quarter of 2024, when the campus began partial operations, the data center segment’s NOI rose by NIS 13 million compared with the previous quarter, reaching NIS 56 million, an increase of 93% year over year. Growth accelerated further in the fourth quarter of 2024, when segment NOI climbed to NIS 99 million, nearly three times its level in the corresponding quarter a year earlier.
In the first quarter of 2025, following the transition to full operation, NOI increased to NIS 116 million. This level was largely maintained in subsequent quarters: NIS 115 million in the second quarter and NIS 111 million in the third quarter of 2025, almost double the segment’s NOI in the corresponding quarter the previous year.
Azrieli is also expected to benefit from a significant year-over-year contribution from the TikTok campus in the fourth quarter of 2025. However, after several quarters of full operation, the exceptionally high growth rates generated by the project have begun to moderate.
According to current plans, the new Norwegian campus is expected to begin generating revenue only toward the end of the first quarter of 2027. In addition, an agreement signed in August to provide data center services from a campus under construction in Germany, with a capacity of 36 megawatts and average annual NOI of €25.5 million (Azrieli’s share, approximately NIS 100 million), is expected to begin generating revenue only partially, covering 9 megawatts, in December 2026.
Furthermore, the potential expansion of the TikTok campus by an additional 30 megawatts has not yet been finalized. As a result, over the coming year, Azrieli is expected to rely primarily on its existing data center assets, including the TikTok campus, and to benefit less from growth driven by newly operational facilities.
