VAST Data and SDS Partner to Build One of Israel’s Largest Sovereign AI Cloud

SDS is building Israel’s largest sovereign AI cloud with VAST’s AI Operating System, delivering performance and scalability for the nation’s most ambitious AI workloads

Remote-First-Company | TEL AVIV, Israel, Sept. 30, 2025 (GLOBE NEWSWIRE) -- VAST Data, the AI Operating System company, announced today a partnership with Shonfeld Data Services (SDS) to power Israel’s most advanced sovereign AI infrastructure. As the dominant colocation and cloud provider in Israel, SDS is building a next-generation AI cloud ecosystem to serve both domestic and international enterprises. By integrating VAST’s cutting-edge AI Operating System, SDS ensures its customers have access to best-in-class AI data infrastructure, enabling seamless training and deployment of AI models at scale.

With dozens of petabytes of VAST-powered data infrastructure and thousands of NVIDIA Blackwell GPUs and NVIDIA networking, this partnership cements SDS’s position as the backbone of AI innovation in Israel. The infrastructure is designed to serve large-scale enterprises that require uncompromising performance, security, and scalability to fuel their AI workloads.

Enabling Israel’s AI Future with Cutting-Edge Infrastructure

SDS has established itself as Israel’s leading colocation provider, dominating over 70% of the market. As the demand for AI infrastructure grows exponentially, SDS recognized the need to build a cloud ecosystem capable of supporting both national AI initiatives and international enterprises looking for a highly connected, sovereign AI solution.

“AI will define Israel’s next chapter as a technology leader and AI infrastructure is the next frontier for Israel’s digital economy,” said Danny Bilitski, General Manager of SDS. “The AI market is set to be exponentially larger than the cybersecurity market was before it, and SDS is at the forefront of ensuring Israel’s position as a global AI powerhouse. To achieve this, we needed an infrastructure partner that not only delivers world-class performance and scalability but also aligns with our vision for the future. VAST Data’s modern architecture, multi-protocol flexibility, and AI-native design made it the clear choice.”

After a comprehensive evaluation of leading AI data platforms and infrastructure solutions, SDS determined that the VAST AI OS was the most advanced and suitable for its sovereign AI cloud build. Key decision factors included:

• Scalability & Flexibility: VAST’s Disaggregated Shared-Everything (DASE) architecture allows SDS to scale seamlessly, accommodating growing AI workloads without downtime or complexity.
• Multi-Tenant & Protocol-Agnostic: Supporting S3, NFS, and SMB protocols, VAST provides a frictionless data platform solution for AI developers, enabling efficient multi-tenancy for SDS’s diverse customer base.
• AI-Optimized Performance: VAST delivers the high-throughput, low-latency infrastructure required to maximize SDS’s GPU utilization and ensure continuous AI training and inference.
• Future-Proof Growth & Investment: The ability to mix and match storage generations ensures long-term cost efficiency and seamless hardware upgrades.
• Simplified AI Data Management: VAST unifies structured and unstructured data, enabling AI models to seamlessly process, enrich, and query metadata at exabyte scale.
• Always-On Expansion & Upgrades: SDS can continuously evolve its AI infrastructure with non-disruptive scaling, ensuring seamless growth for its customers.

“Our partnership with SDS demonstrates how nations can pair world-class talent with world-class infrastructure to build truly sovereign AI ecosystems,” said Peter Gadd, International Vice President, VAST Data. “By delivering the performance, scalability, and security needed for next-generation AI workloads, SDS is positioning Israel to compete globally while protecting its digital sovereignty. VAST is proud to be the foundation that makes this vision a reality.”

Powering AI Innovation at Scale Across Israel

VAST Data’s collaboration with SDS is more than a technology integration—it is a long-term strategic partnership designed to support Israel’s AI ecosystem. SDS’s customers span some of the largest enterprises and AI innovators in the region, with a focus on supporting high-growth AI applications in cybersecurity, finance, healthcare, and government sectors. Unlike traditional hyperscalers, SDS provides tailored AI infrastructure solutions designed specifically for large-scale AI deployments.

As SDS continues to expand its AI capabilities, the company plans to further integrate VAST’s technology to enhance high-performance file storage and multi-cloud AI deployments.

“With Israel’s AI talent ranking among the top 10 in the world but its infrastructure less prolific, SDS is committed to bridging this gap,” added Bilitski. “By partnering with VAST, we are building the infrastructure that will support Israel’s AI future, ensuring enterprises can develop and deploy AI models at the highest possible performance. Continuing Israel’s rich heritage with technology innovation.”

About VAST Data
VAST Data is the AI Operating System company – powering the next generation of intelligent systems with a unified software infrastructure stack that was purpose-built to unlock the full potential of AI. The VAST AI OS consolidates foundational data and compute services and agentic execution into one scalable platform, enabling organizations to deploy and facilitate communication between AI agents, reason over real-time data, and automate complex workflows at global scale. Built on VAST’s breakthrough DASE architecture – the world’s first true parallel distributed system architecture that eliminates tradeoffs between performance, scale, simplicity, and resilience – VAST has transformed its modern infrastructure into a global fabric for reasoning AI. Learn more at vastdata.com and follow VAST Data on LinkedIn, YouTube and X.

James Warnette
VAST Data
press@vastdata.com

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