Israeli artificial intelligence (AI) company DREAM has opened a sovereign AI data center near Modi’in on Thursday, positioning itself to compete in a fast‑emerging market for government‑grade AI infrastructure.
The facility, which is part of a tens‑of‑millions‑of‑dollars investment, is designed to serve national agencies and critical infrastructure operators that require full control over data, model training, and deployment environments.
The data center includes a GPU cluster built on NVIDIA B200 systems, enabling DREAM to train proprietary language models and domain‑specific AI systems. The company develops its own models rather than relying solely on public foundation models, targeting sectors such as cybersecurity, healthcare, transportation, finance as well as decision‑support systems for government agencies.
DREAM was founded in 2023 by former spyware company NSO Group CEO Shalev Hulio, former Austrian Chancellor Sebastian Kurz, and Gil Dolev. Hulio left NSO Group but continues to work with heads of state and heads of cybersecurity systems as CEO of Dream, which aims to protect government companies, national cyber systems, and infrastructure companies.
The company develops advanced artificial intelligence and cyber capabilities for governments, regulated industries, and national infrastructure operators, enabling secure, sovereign deployment of mission‑critical AI systems.
A strategic bet on sovereign AI
Hulio said the new facility is intended to close a gap in the market for AI systems that must operate under sovereign conditions.
“When artificial intelligence enters government domains and national infrastructure, building a strong model is not enough,” Hulio said. “You must also control the conditions in which it is trained and deployed.”
The company argues that sovereign AI- developed, trained, and deployed within a fully controlled national environment-is becoming a foundational layer of state‑level digital infrastructure, similar to secure communications or national cyber defense.
Training takes place in an isolated environment that mirrors customer operational conditions, allowing sensitive data to be used without external exposure. This setup supports rapid fine‑tuning of models while meeting strict regulatory and compliance requirements.
The facility was developed in partnership with Bynet and incorporates high‑performance computing infrastructure, a fast InfiniBand network, and large‑scale storage optimized for large‑model training.
Above the hardware layer, DREAM’s AION platform provides a unified environment for model development, training, deployment, and lifecycle management. The platform is designed to give sovereign customers full control over model weights, training processes, and deployment workflows—capabilities that commercial cloud platforms typically do not offer.
Expanding beyond algorithms
The launch marks a strategic expansion for DREAM, which has until now focused on AI and cyber algorithm development. The company is now positioning itself as a provider of end‑to‑end sovereign AI systems, combining infrastructure, models, and governance frameworks into a single operational stack.
This shift aligns with a global trend where governments and regulated industries are increasingly seeking vertically integrated AI solutions that can be deployed securely within national borders.
With the new data center, DREAM aims to strengthen its role in Israel’s growing AI ecosystem, which includes defense‑oriented AI initiatives, secure cloud environments, and national cyber capabilities. The company says the facility will support long‑term investment in AI systems that must operate under the highest levels of security, reliability, and accountability.