U.S. Investor Ezra Garnder Sees AI Driving SMRs for Israel

U.S. investor Ezra Gardner, founder of Varana Capital, has publicly advocated for Small Modular Reactors in Israel's Negev Desert to power data centers and AI infrastructure. Gardner argued that Israel's grid cannot meet the energy demands of hyperscale computing facilities and that SMRs operating in "island mode" at 100 to 300 MW each are "the only solution" for the country's technological and economic growth. He disclosed direct engagement with Israeli government officials on the proposal, though the article suggests political hesitation over control of such a site.

Where this fits

This story illustrates the firm-power case that renewables-only grids cannot reliably serve dense, continuous loads. Data center operators globally are turning to nuclear because wind and solar cannot guarantee the availability their equipment demands. Gardner's framing, that SMRs solve a grid constraint that renewables alone cannot address, is the counterargument to Australia's current path, where a renewables-heavy grid is being supplemented by gas and battery storage at rising whole-system cost. The proposal also flags a sovereignty concern: if Israel pursues nuclear, it gains energy independence; Australia's equivalent, firm dispatchable power, remains legislatively blocked while the country deepens dependence on China's battery and inverter supply chain.

What it means

Australia faces the same data center load pressure as Israel but has chosen to meet it through grid extension and gas backup rather than deploying firm, low-carbon generation. As AI compute clusters grow, the cost and emissions penalty of weather-dependent firming will compound. Israel's pursuit of SMRs, even amid political friction, underscores that other democracies are treating energy density and grid reliability as strategic assets. Australia is not.