By securing the AI grid, Israel can go from Start-Up Nation to Energy Guardian

Smart grids and autonomy are Israel’s next strategic frontier, but is the country ready?

As artificial intelligence reshapes industries and defense systems alike, the infrastructure powering this revolution-massive data centers and computer networks-is becoming a new frontier of national security. And with significant investment in Artificial Intelligence increasing around the globe, the race to power it is on.

The AI revolution is leading to rapid growth in energy consumption as its large infrastructure such as powerful chips and cooling systems consumes substantial amounts of electricity. These data centers are the heart of the AI revolution, but are quickly approaching the limits of what one single facility can provide constrained by energy supply limitations.

So how do you power them? And how do you secure them? Lt.-Col. (res.) Shay Peretz, CEO of Ralco Energy might have the answer.

Peretz has spent hundreds of days fighting in the Gaza Strip, having arrived in southern Israel as the Hamas massacre on Oct.7 was still ongoing. But when he’s not in uniform serving as Deputy Commander of the 96th Division’s “Yonatan Brigade” in, he’s busy pushing Israel towards green energy to secure the AI grid.

Peretz, who began his professional career in Israel’s defense and aerospace sectors, joined Ralco in 2021. Ralco delivers full-stack renewable energy and storage solutions across Israel and Europe. For Peretz, one of the world’s most urgent challenges is powering the future without destroying the planet.

“We need to be independent in AI and data centers,” Peretz said, adding that “those data centers will need a lot of green, renewable energy.”

According to a report by the International Energy Agency, global data centers currently account for approximately 1-2% of the world’s total electricity consumption, and could reach 4-6% by 2030. New data centers would exacerbate this, making it even more critical to find a solution to energy constraints.

And Israel, an ‘electricity island’, is cut off from neighboring power grids and is heavily dependent on natural gas making it especially vulnerable to threats to its energy infrastructure. With an increase in demand for electricity, Israel could face a prolonged disruption of its energy supplies. Peretz suggested that by building microgrids and dual use solar fields for high and ultra voltage as well as agro-photovoltaic (PV) in order to produce independent green power plants.

Pointing towards the IDF’s laser defense system, Peretz warned that while it’s been promoted as a cheap and effective system, it still needs to be powered

“Lasers will take so much energy and a large part of the country doesn’t have the capabilities to power them, especially on the borders where the systems will likely be placed,” Peretz warned, adding that “Israel has a problem with transmitting power, we need to change the infrastructure.”

From cybersecurity to energy guardian

Israel’s expertise in cybersecurity is no longer confined to protecting water systems or transportation networks. These same capabilities can be deployed to shield energy grids that power hyperscale AI data centers. With cyberattacks growing more sophisticated, Israel’s expertise can ensure that the digital backbone of AI remains resilient against hostile disruptions.

“We need to show that we are avant-garde in defense solutions, but in AI we are behind compared to our neighbors,” he said, adding that government regulation is stopping the country from being “a data center leader.”

While the Israeli government is not as supportive of AI, multi-national companies like NVIDIA are still coming to Israel. And with global tech companies like Microsoft, Amazon and others continuing to build AI data centers, demand for NVIDIA’s processors continues to grow.

In the age of AI, resilience and geopolitical reliability matter as much as cost. Israel’s proven track record in innovation and defense makes it a natural partner for managing critical infrastructure. Tech giants aren’t just investing, they are investing with confidence.

And according to Peretz, the data centers and supercomputers Nvidia is building in Israel are not only a technological asset but also a strategic defense asset, providing national computing infrastructure that can be leveraged for intelligence, simulations, and AI-based defense systems.

“The combination of Israeli cybersecurity, smart energy management, and AI processing creates unique dual-use capabilities -serving both civilian and military needs,” Peretz said.