Azrieli Group’s decision to invest €1 billion in a Norwegian data center campus highlights a shift toward long-duration operating income at a time when execution risk has become harder to ignore. The planned 80-megawatt campus, developed through Azrieli’s data center arm Green Mountain, reinforces the company’s reliance on infrastructure assets with extended revenue visibility.
The market response was immediate. Following the announcement, Azrieli shares rose over 8% on the Tel Aviv Stock Exchange, supported by heavy trading volumes. Investors appeared to focus on projected net operating income rather than the long construction timeline.
Norwegian Data Center Campus Anchors NOI Expectations
Under current assumptions, the Norwegian data center campus is expected to deliver €117 million in annual NOI once fully occupied. That equals roughly NIS 440 million. For Azrieli, this projection strengthens the role of data centers as a central earnings contributor.
Green Mountain has already signed a services agreement with an international technology company. The contract runs for 15 years and includes an option for a further 15-year extension. As a result, the revenue structure favors stability and predictability.
At the same time, Azrieli has begun discussions with financing institutions regarding project funding. This step suggests measured capital deployment rather than accelerated balance-sheet expansion.
Regulatory Exposure Remains a Defining Variable
Despite positive market sentiment, regulatory conditions continue to shape the project’s execution profile. Azrieli plans to complete the first development phase by the end of March 2027. That phase includes 20 megawatts of service capacity.
However, construction remains subject to regulatory approvals and permits. In addition, the facility must secure a confirmed connection to the electricity grid before services can begin.
Recent history reinforces these constraints. Until March, Azrieli negotiated with another international technology company over a separate Norwegian campus planned for 120 megawatts. Those talks later stopped.
Local authorities failed to issue building permits for the designated land. The market reaction was swift. Azrieli shares dropped 8% after the disclosure and fell another 2% the following day. That episode continues to influence investor caution around Norwegian development risk.
Second-Largest Green Mountain Deal Builds on Existing Exposure
Even with regulatory uncertainty, the current agreement ranks as the second-largest transaction executed by Green Mountain and Azrieli in the data center sector. Only one deal exceeds it.
In March 2023, Azrieli agreed to build a 90-megawatt Norwegian campus for TikTok. That project reshaped the company’s data center performance over the past year.
Partial operations began in the third quarter of 2024. Full capacity followed soon after. Since then, the TikTok campus has served as Azrieli’s primary growth driver.
TikTok Campus Reset the Growth Trajectory
Financial results show how sharply the segment expanded. In the third quarter of 2024, data center NOI rose by NIS 13 million quarter over quarter. NOI reached NIS 56 million, reflecting 93% year-over-year growth.
Momentum continued in the fourth quarter. Segment NOI climbed to NIS 99 million, nearly triple the prior-year level.
After full operations began, first-quarter 2025 NOI reached NIS 116 million. Results then stabilized. NOI totaled NIS 115 million in the second quarter and NIS 111 million in the third quarter of 2025. Each figure stood close to double the comparable period a year earlier.
Growth rates have since moderated. While the TikTok campus is expected to deliver a strong year-over-year contribution in the fourth quarter of 2025, the phase of rapid expansion has passed.
New Capacity Will Arrive Gradually
Looking ahead, Azrieli’s growth outlook depends largely on existing assets. Under current plans, the new Norwegian data center campus will begin generating revenue toward the end of the first quarter of 2027.
Separately, Azrieli signed an agreement in August to provide data center services from a campus under construction in Germany. That site will offer 36 megawatts of capacity and generate average annual NOI of €25.5 million. Azrieli’s share equals roughly NIS 100 million.
However, only 9 megawatts are expected to enter service in December 2026. Full revenue contribution will follow later.
At the same time, Azrieli has not finalized a potential 30-megawatt expansion of the TikTok campus. Until clarity emerges, incremental growth remains constrained.
Taken together, Azrieli’s €1 billion Norwegian data center campus reflects a disciplined capital strategy shaped by power access, permitting risk, and investor expectations. Capacity expansion continues, but timelines remain extended.
For investors, the signal remains consistent. Earnings growth will depend on operational assets already in service, while future projects build slowly into the revenue base. In the current data center cycle, that pace may define sustainable performance rather than aggressive scale.
