Bezeq stock targets data-center growth with Adgar venture

Bezeq is moving into data-center infrastructure through a planned joint venture with Adgar Investments and Development, a step that broadens the Israeli telecom group’s growth strategy beyond traditional connectivity. The board-approved memorandum of understanding was reported on Thursday, November 5, 2026, by Globes.

Data center targets 2028 launch

The planned facility in Petah Tikva’s Kiryat Arye industrial zone is designed for at least 16 megawatts. Adgar would provide the land, construction and physical infrastructure, while Bezeq would procure the equipment, lead the technology rollout and manage operations and marketing.

The parties are expected to invest NIS 200 million to NIS 250 million each from internal resources. The bulk of the spending is scheduled for 2027 and 2028, with commercial operations targeted for 2028. Bezeq estimates annual revenue of NIS 50 million to NIS 80 million and operating cash flow of NIS 25 million to NIS 40 million once occupancy builds, although the memorandum is non-binding and the projections are not guarantees.

Financial base supports expansion

Bezeq’s first-quarter 2026 release said group core revenue rose 2.6% year over year to NIS 2.03 billion, while comparable net profit increased 4.2% to NIS 300 million. Free cash flow reached NIS 455 million, helped in part by a tax refund and working-capital movements. The company kept its 2026 outlook at NIS 3.7 billion to NIS 3.8 billion of comparable EBITDA, NIS 1.0 billion to NIS 1.1 billion of comparable net profit and roughly NIS 1.6 billion of capital expenditure, according to its first-quarter financial release.

National telecom platform

Headquartered in Holon, Israel, Bezeq provides communication services to residential and business customers through fixed-line, cellular, internet and international communication, ICT, and multichannel television operations. Its offering includes broadband, data transmission, mobile services, cloud and business solutions, and television products. The group operates alongside Israeli telecom providers including Partner Communications, Cellcom Israel and HOT, while its fixed-line infrastructure gives it a broad national-network position.

Bezeq’s data-center plan adds a long-term infrastructure option to a business still driven by telecommunications cash flow. Execution, final documentation with Adgar and demand for cloud and artificial-intelligence capacity will shape the project’s eventual contribution.