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U.S. Tech Park in Israel May Have a Nuclear Power Plant

While President Trump has busted through a lot of international norms, and removed the U.S. from multilateral agreements like climate change, busting the bounds of the Nonproliferation Treaty would set a dangerous precedent that could be followed by similar actions by Russia and China

The fact that Israel has signed an MOU with the U.S. that could potentially involve it  acquiring U.S. manufactured SMRs is a signal that if India can do it, so can Israel. Saudi Arabia will not be far behind in asking for the same deal should the Israeli industrial park agreement move forward beyond the MOU stage.

 February 7, 2026 by djysrv, https://neutronbytes.com/2026/02/07/u-s-tech-park-in-israel-may-have-a-nuclear-power-plant/

Israel signed an agreement with the U.S. on 01/16/26  to build an industrial park to produce advanced computer chips at a location in the Negev desert that would use a small modular nuclear reactor (SMR) to power the factory and nearby data centers also planned for this location.

Where things stand now, according to Israel news media, Israel and the US have inked an agreement to jointly build and operate a large technological park in Israel. The deal is part of a strategic cooperation agreement on AI signed in Jerusalem last month. (Israel government statement)

One of the surprising details to emerge from the discussions on the agreement relates to the energy infrastructure. The huge power demands of data centers and AI computer systems require a large, reliable 7/24/365 energy solution. As a result, the possibility appears to be kicking around of constructing one or more nuclear power plants, most likely SMRs, at the site.

The MOU, signed by the head of the National AI Directorate, Brig. Gen. (Res.) Erez Eskel, and the U.S. Under Secretary of State for Economic Affairs Jacob Helberg, reveals an ambitious plan to allocate 4,000 acres to the U.S. The park, which will be constructed in the Negev Desert or less likely in the Gaza Strip border area, and which will be called “Fort Foundry One”

Helberg travelled to Israel after signing similar agreements in Doha and Abu Dhabi. He said that Israel was an “anchor partner” in the effort, thanks to its technological ecosystem and its ability to produce “asymmetric results” in relation to its geographical size.

US Under Secretary of State for Economic Affairs, Jacob Helberg said, “With the launch of Pax Silica, the United States and Israel are uniting our innovation ecosystems to ensure the future is shaped by strong and sovereign allies leading in critical technologies like AI and robotics.”  

Helberg comes to his role as a former lobbyist for Silicon Valley information technology firms and as a former executive for Google. One of his key interest areas has been addressing the national security risks posed to the U.S. by China. He wrote a book on the subject, The Wires of War: Technology and the Global Struggle for Power, (2021) calling for a stronger U.S. strategy against China’s technological ambition. According to the publisher’s book jacket, Helberg led Google’s global internal product policy efforts to combat disinformation and foreign interference in U.S. domestic affairs.

U.S. Thinks a Contractual Fig Leaf Can Cover the Absence off a 123 Agreement

Israel to date has no experience with civilian nuclear power plants used for electricity generation. The country has reportedly produced an unspecified number of nuclear weapons used as a deterrence factor when dealing with hostile neighbors like Iran. Also, Israel has not signed the Nuclear Nonproliferation Treaty due to policy of strategic ambiguity and its obvious reluctance to reveal the extent of its nuclear arsenal.

The official MOU for the Negev AI data center remains somewhat vague referring to a “high-intensity energy infrastructure” but it clearly is pointing to small modular reactors (50-300 MW). Due to the location in the extremely dry Negev desert, an advanced design, such as an HTGR, which does not require cooling water to operate, is likely to be chosen should the project reach a stage where a reactor design would be selected for this site.

The joint initiative is part of a broad international framework launched by the Trump administration called “Pax Silica“, a coalition of about twelve countries in technology, the aim of which is to secure supply chains of semiconductors and AI. Taiwan did not sign the agreement.

Israel joined the initiative in December 2025, and was the first country to sign a bilateral agreement with the U.S. in this framework. Among the other countries in the coalition are Qatar, the UAE, Australia, Greece, Japan, South Korea, Singapore, and United Kingdom.

The Heavy Lift Associated with Civilian Nuclear Power in Israel

Israel has abundant natural gas supplies to support private wire gas power generation for data centers. It doesn’t need small modular reactors to power them.

The geopolitical heavy lift that would be required for a civilian nuclear power plant in Israel would probably set off a similar request from Saudi Arabia for the same kind of deal.

The Saudi government has been stalled for years in its quest for US nuclear reactors due to its insistence on the right to uranium enrichment as part of a 123 Agreement with the U.S. The Saudi government sees enrichment as a deterrence signal to Iran over its nuclear program. If the U.S. gives a green light to Israel, through some kind of three bank policy pool shot, to build U.S. supplied civlian SMRs, without a 123 Agreement,  the Saudis would likely ask for a similar deal.

While President Trump has busted through a lot of international norms, and removed the U.S. from multilateral agreements like climate change, busting the bounds of the Nonproliferation Treaty would set a dangerous precedent that could be followed by similar actions by Russia and China.

This would move the planet into dangerous territory. For this reason, consideration of a U.S. managed nuclear power plant in Israel may be too hot a potato for even Trump to toss over the transom. Bipartisan opposition in the Senate would be almost certain for a civilian nuclear reactor deal with Israel without a 123 agreement.

Israel does not have an agreement with the U.S. under Section 123 of the Atomic Energy act as such a move would require it to declare its nuclear infrastructure. The Israeli government has relied on strategic ambiguity about how many nuclear devices it has as a deterrence measure. The Israeli government is not going to give that up military advantage away to get small modular reactors to power data centers in a white collar industrial park.

Finally, the news release by the Israeli Prime Minister’s office about the U.S. deal may be one of a series of trial balloons the Israeli government has floated over the years about civilian nuclear power so it should be viewed with some skepticism for that point alone.

The U.S. plan apparently is to cover these issues with a contractual fig leaf that depends on a unique model in which the reactor operates under U.S. safety regulation and supervision, despite being located on Israeli territory. It’s a pretty thin leaf.

Watch What We Do Not What We Say

It is not lost on the Saudi and Israel governments that India enjoys a special relationship regarding recent developments that open the door to India for acquisition of civilian U.S. nuclear reactor technologies, without having a 123 Agreement, while these two nations are locked out these opportunities.

Where things get complicated is that the Saudi government has undoubtedly been watching how U.S. nuclear reactor firms are faring with India for some time. Recently, India opened the door to U.S. nuclear reactors by terminating its supplier liability law that acted very effectively as a trade barrier for U.S. firms.

Almost at the same time, the U.S. Department of Energy granted Holtec permission to export its 300 MW SMR to India.  The authorization names three Indian companies – Larsen & Tubro (Mumbai), Tata Consulting Engineers (Mumbai) and the Company’s own subsidiary, Holtec Asia (Pune) – as eligible entities with whom Holtec can share necessary technical information to execute its SMR-300 program. Holtec also plans to build a factory in India to manufacture the small reactors. Westinghouse is expected to seek to enter the Indian nuclear market.

What the Saudi government sees is that U.S. policy towards India shows a remarkably different approach to a country which has declared it has a nuclear arsenal, has tested its nuclear weapons, and is not a party to the Nonproliferation Treaty. Further, India does not have a 123 agreement with the U.S. and has no immediate plans to seek one. Israel has likely come to the same point of view.

The fact that Israel has signed an MOU with the U.S. that could potentially involve it  acquiring U.S. manufactured SMRs is a signal that if India can do it, so can Israel. Saudi Arabia will not be far behind in asking for the same deal should the Israeli industrial park agreement move forward beyond the MOU stage.

Saudi Plans for AI Data Centers Points to Nuclear Reactor to Power Them

The Saudi government’s ambitious plans and programs to transform the oil rich company into a regional powerhouse for artificial intelligence will require significant investments in electricity generation to power the AI data centers needed to carry out this effort.

According to a report in the New York Times, Saudi Arabia is investing $40 billion to become a dominant player for the use of AI in the Middle East. Data centers to support this program will require enormous amounts of electrical power to support the advanced semiconductors that process AI software, to power the data centers themselves, and to keep them cool in one of the hottest regions on the planet.

It follows that the Saudi government will coordinate its plans for a  nuclear new build with its massive investments in AI. It is likely that sooner or later Saudi Arabia’s need to break ground on the first two reactors in anticipation of the need for power for its AI program and related data centers.

It may decide that building commercial nuclear power plants to power its AI program is more important than the geopolitical consideration of having access to nuclear technologies with or without a U.S. 123 Agreement. Given the U.S. course of actions with India, Saudi Arabia may ask for the same kind of deal thus bypassing the entire enrichment policy issue it has with the U.S.

The Saud government has a tender outstanding, which has been on hold for some time, to build two 1,400 MW PWR type reactors. It has also explored options for SMRs for data centers and to power desalination plants to provide potable water for general and industrial uses. A award for the two reactors could be the first order of business the Saudi government will seek to pursue in asking for the same deal the U.S. gave India.

February 13, 2026 - Posted by Christina Macpherson | Israel, Small Modular Nuclear Reactors