Enlight targets $2.1B data center run rate

Enlight Renewable Energy is pitching investors on a new customer: the AI data center. At a May 19 investor meeting, the Israeli renewable power developer said it wants to build data-center projects near its generation assets in Israel, the United States, Finland and Germany as hyperscalers and co-location operators look for power in constrained markets. The company said it expects its operating portfolio to reach 12 to 13 factored gigawatts by the end of 2028, generating an annual revenue and income run-rate of $2.1 billion to $2.3 billion. The pitch lands as electricity demand from AI infrastructure is moving from a technology issue to a power-sector issue. A May 24 report by Deven Choksey Research said AI data centers could drive energy demand to 1,600 terawatt-hours by 2034 and are reviving interest in nuclear power because operators want firm, always-on and carbon-free electricity. The same report said nearly 40 countries have pledged to triple nuclear capacity by 2050. (theglobeandmail.com) ### Why is a renewable developer moving into data centers? Enlight said the move is tied to where electricity is available, not just where server demand is growing. The company told investors it wants to co-locate large data centers with its power-generation hubs and use its development and operating footprint across several markets to serve AI-driven demand. (latestly.com) The company’s first-quarter 2026 earnings release, published in May, repeated the same 2028 target and said the current mature portfolio alone supports a $2.1 billion to $2.3 billion annual revenue and income run-rate by year-end 2028. That filing also said the target reflects a 41% compound annual growth rate from 2024 to 2028. ### What does the $2.1 billion figure actually represent? (theglobeandmail.com) The number is not a 2026 revenue forecast. Enlight described it as an end-2028 annualized revenue and income run-rate tied to assets expected to be operating by then. At the investor meeting, management paired that target with an adjusted EBITDA margin of roughly 70% to 80%, including tax benefits, according to materials summarized after the event. (enlightenergy.com) MarketBeat, citing the investor-day presentation, said Enlight’s data-center pipeline already exceeds 2 gigawatts in early development. The same coverage said the company sees project-level internal rates of return of 10% to 20% for the data-center business, alongside its existing wind, solar and storage operations. ### Why does AI power demand keep pulling nuclear into the conversation? (theglobeandmail.com) Deven Choksey Research said AI data centers need power that is “firm, dispatchable, always on and carbon free,” arguing that wind and solar alone cannot meet that profile without costly storage. The report said nuclear plants operate at about a 92% capacity factor and that more than 12 gigawatts of new nuclear capacity entered construction globally in 2025. (marketbeat.com) That argument is showing up alongside, not instead of, investment in renewables and grids. Enlight’s own strategy assumes rising electricity demand will support new renewable generation and storage, while the Choksey report says energy-security concerns and decarbonization goals are also pushing governments back toward nuclear. (latestly.com) ### Where is the political friction showing up first? Pennsylvania is one example. ABC27 reported on April 14 that the state House passed House Bills 1250 and 1251, which would require data centers to report annual water and energy use and disclose effects on the state’s water and power grids. Democratic Representative Kyle Mullins said residents “deserve transparency,” while House Republican Leader Jesse Topper said lawmakers should avoid overregulating before they know what is needed. (theglobeandmail.com) Spotlight PA, in a report republished by local outlets in May, said the next fight in Harrisburg is over who pays for grid upgrades, how tax breaks should work and whether municipalities should get more authority over siting. The report said Senate Majority Leader Joe Pittman wants a more “holistic” approach, and Governor Josh Shapiro has proposed faster permitting for data centers that meet environmental and transparency standards. (abc27.com) ### What comes next for Enlight and for the wider buildout? By the end of 2028, Enlight says it expects 12 to 13 factored gigawatts of operating capacity and a $2.1 billion to $2.3 billion annual revenue and income run-rate from its mature portfolio. In Pennsylvania, the House-passed oversight bills now sit alongside separate Senate proposals and Shapiro’s permitting plan, which will shape how future projects are approved and how their power and water costs are assigned. (enlightenergy.com) (statecollege.com)