Israeli data center developer NED has begun construction of a new facility outside Tel Aviv.

The company this week announced the groundbreaking of the first phase of its debut Alpha Campus, a $350 million AI and cloud data center project.

In development through a partnership with real estate firm Levinstein and investment firm Goldacre, NED is developing a 35,000 sqm (376,735 sq ft), 42MW campus. Electra Limited will construct the campus, which is expected to become operational in 2027.

The Alpha Campus is described as situated on Israel’s central Mediterranean coast, just 20km (12.42 miles) from the Tel Aviv metropolitan area. Previous reports suggest the companies had acquired land in the northern Tel Aviv metro area within the city of Netanya.

The campus will support multiple cooling options, including direct liquid cooling (DLC) starting at 100kW per rack, in-row cooling, and rear-door heat exchangers for entire data halls.

NED said the campus will feature a fortified underground design that provides secure, protected infrastructure against physical threats, including missiles.

Daniel Efrati, CEO of NED, said: “The Alpha Campus represents a bold step forward for Israel’s digital infrastructure. As AI continues to drive innovation and economic growth, this facility will not only support the region’s technological needs but also serve as a global benchmark for sustainable and secure data center design. At NED, we are proud to be at the forefront of building the critical infrastructure that powers the next generation of breakthroughs.”

Goldacre is a specialist investment firm and investor in UK operator Kao Data. The Levinstein Group is a public corporation of engineering, construction, and real estate companies.

The two companies signed a joint venture to acquire land and develop the site via NED back in December 2022. Work on the first phase was originally due to start in summer 2023.

Shaul Lotan, CEO of Levinstein Group, added: “This campus not only meets growing data demands but also brings an AI-ready data center to Israel’s tech sector.”

Goldacre (formerly Goldacre Ventures) is the venture capital arm of Noé, a £2.5bn ($3.04bn) family office-led investment house based out of London. The company owns a roughly 30 percent stake in UK data center firm Kao Data.

NED lists plans for a second site, known as Project Omega, on its website but hasn’t provided more details.