Israel and the United States have allegedly reached an agreement to establish a large-scale technology park in southern Israel, with the deal expected to be signed in Jerusalem later this month. The facility is set to function primarily as a strategic chip manufacturing and artificial intelligence centre.
A document obtained by Globes showed that the project, designated “Fort Foundry One,” will occupy approximately 16,000 dunams in either the Negev or Gaza Envelope region.
The memorandum of understanding, signed by the chief of the National Artificial Intelligence Headquarters, Brigadier General (res.) Erez Askal and US Undersecretary of State for Economic Affairs Jacob Helberg granted the United States a 99-year lease on the land.
While the territory will remain under Israeli sovereignty, ongoing management and primary investment will come from the United States, with American technology companies operating alongside Israeli firms.
This agreement appears to be occurring as Middle Eastern economies look to become part of the US’ Pax Silica, as Israel’s tech sector experiences renewed momentum following the Gaza war.
The recently signed Pax Silicaa deal is a US-led international initiative launched in late 2025 to build secure, resilient supply chains for advanced technologies, especially AI and semiconductors, under the Trump administration
Current members of Pax Silica include the United States (as Lead), Australia, Israel, Japan, South Korea, Singapore, the United Kingdom, the Netherlands, Qatar (Joined January 12) and the United Arab Emirates (Joined January 14).
The high electricity demands of data centres and AI computing systems have raised the possibility of constructing a new nuclear reactor on-site, which could prove complex given Israel’s non-signatory status to international civilian nuclear reactor treaties.
In an earlier report by the Times of Israel, construction work at Israel’s only nuclear site in Dimona appeared to increase at the end of 2025, indicating an increase of development of the sector ahead of the announcement of the new AI centres.
The Associated Press first reported on excavations at the facility, some 90 kilometres (55 miles) south of Jerusalem, in 2021.
The United States’ treaty membership could enable a unique regulatory model where the reactor operates under American supervision despite its location on Israeli territory, though official documentation refers more broadly to “high-density energy infrastructure.”
Hellbound and Down 