According to Arizton’s latest research report, the Israel data center market is growing at a CAGR of 5.77% during 2023-2029.  

 

To Know More, Click: https://www.arizton.com/market-reports/israel-data-center-market 

 

Report Summary   

Market Size (Investment): $896 Million (2029)   

Market Size (Area): 433 thousand Sq. ft (2029)  

Market Size (Power Capacity): 84 MW (2029) 

CAGR (2023-2029): 5.77% 

Colocation Market Size (Revenue): $265 Million (2029)   

Historic Year: 2020-2022  

Base Year: 2023  

Forecast Year: 2024-2029  

 

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Israel, a Middle Eastern country, is known for its tech hubs and startups, particularly in Petah Tikva and Tel Aviv. The nation focuses on technology-driven initiatives and data center investments, creating a dynamic ecosystem for hyperscale, colocation, and cloud infrastructure solutions. Emerging hotspots include Jerusalem, Rosh Haayin, Tirat Carmel, and Raanana. 

The Israel data center industry is rapidly growing due to robust government support, increasing cloud expansion, advancements in 5G technology, smart city initiatives, IoT upgrades, and a culture of digital creativity. These factors drive growth in colocation and hyperscale services. Israel’s innovation sector is vibrant, referred to as the Cloud Nation, with new cloud providers joining established hyperscalers like Microsoft, Amazon Web Services (AWS), Oracle, and Google, broadening market variety and cloud accessibility. 

Israel aims to achieve a significant milestone by sourcing 30% of its energy from renewables by 2030. The construction of underground data centers became prominent in 2023, influenced by the ongoing Israel-Palestine conflict and resulting geopolitical tensions. Israel has about 23 active data centers, with 16 more in various stages of development or planning. 

 

Key Highlights: 

• The Israel data center industry accounts for the presence of local and global data center investors such as EdgeConneX, Global Technical Realty, MedOne, Bynet Data Communications, and Adgar Investments & Development. The market’s growth opportunities have attracted new investors such as Digital Realty, Serverfarm, NED Data Centers, and Techtonic. 

• Israel intends to add around 2,000 MW of renewable energy to the national electricity grid. Around 435 MW of data center power capacity will be added across Israel between 2024 – 2029. 

• The colocation services market in Israel is dominated by retail colocation operators such as Adgar Investments and Development, Bynet Data Communications, EdgeConneX, and MedOne; these players are poised for substantial revenue growth in the Israel colocation market. 

 

Data Center Investments in Israel  

• In February 2024, MedOne announced its plan to develop two underground data center facilities in the country with an investment of around $270 million. The first facility will likely become operational by 2026, and the second one will go live by 2027.  

• In April 2023, EdgeConneX announced its plan to build a new facility in the Israeli capital of Tel Aviv. 

• In April 2023, Global Technical Realty completed the first construction phase of its underground data center (IS One) in Petah Tikva, Israel. 

• In February 2023, Techtonic announced its plan to build an underground facility in Bet Shemesh for over $55 million; the facility is slated to go live by Q2 2025. 

 

Existing VS. Upcoming Data Centers 

• Existing Facilities in the Region (Area and Power Capacity) 

• Petah Tikva 

• Tel Aviv 

• Other Cities 

• List of Upcoming Facilities in the Region (Area and Power Capacity) 

 

Why Should You Buy this Research? 

• Market size is available in terms of investment, area, power capacity, and Israel colocation market revenue. 

• An assessment of the data center investment in Israel by colocation, hyperscale, and enterprise operators. 

• Investments in the area (square feet) and power capacity (MW) across cities in the country. 

• A detailed study of the existing Israel data center market landscape, an in-depth market analysis, and insightful predictions about industry size during the forecast period. 

• Snapshot of existing and upcoming third-party data center facilities in Israel 

• Facilities Covered (Existing): 23 

• Facilities Identified (Upcoming): 16 

• Coverage: 5+ Cities 

• Existing vs. Upcoming (Area) 

• Existing vs. Upcoming (IT Load Capacity) 

• Data Center Colocation Market in Israel 

• Market Revenue & Forecast (2023-2029) 

• Retail & Wholesale Colocation Pricing 

• The Israel data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast. 

• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry. 

• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the market. 

• A transparent research methodology and the analysis of the demand and supply aspects of the market. 

 

Buy this Research @ https://www.arizton.com/market-reports/israel-data-center-market 

 

The report includes the investment in the following areas: 

IT Infrastructure 

• Servers 

• Storage Systems 

• Network Infrastructure 

Electrical Infrastructure 

• UPS Systems 

• Generators 

• Switches & Switchgear 

• PDUs 

• Other Electrical Infrastructure 

Mechanical Infrastructure 

• Cooling Systems 

• Racks 

• Other Mechanical Infrastructure 

Cooling Systems 

• CRAC and CRAH Units 

• Chillers Units 

• Cooling Towers, Condensers, and Dry Coolers 

• Other Cooling Units 

General Construction 

• Core & Shell Development 

• Installation & Commissioning Services 

• Engineering & Building Design 

• Fire Detection & Suppression 

• Physical Security 

• Data Center Infrastructure Management (DCIM) 

Tier Standard 

• Tier I & Tier II 

• Tier III 

• Tier IV 

 

Vendor Landscape 

IT Infrastructure Providers 

• Broadcom 

• Cisco Systems 

• Dell Technologies 

• Fujitsu 

• Hewlett Packard Enterprise 

• Hitachi Vantara 

• IBM 

• Juniper Networks 

• Lenovo 

• NetApp 

• Oracle 

Data Center Construction Contractors & Sub-Contractors 

• M+W Group (Exyte) 

• Mercury 

• MiCiM 

• Saan Zahav 

Support Infrastructure Providers 

• ABB 

• Caterpillar 

• Cummins 

• Delta Electronics 

• Eaton 

• ETAP 

• HITEC Power Protection 

• Johnson Controls 

• Keysight Technologies 

• Legrand 

• Mitsubishi Electric 

• Rittal 

• Rolls-Royce 

• Schneider Electric 

• Siemens 

• STULZ 

• Vertiv 

Data Center Investors 

• Adgar Investments & Development 

• Amazon Web Services 

• Bynet Data Communications 

• Bezeq International 

• Compass Datacenters 

• EdgeConneX 

• MedOne 

• Microsoft 

New Entrants 

• Anan 

• Digital Realty 

• Global Technical Realty 

• NED Data Centers 

• Serverfarm 

• Techtonic 

 

Key Questions Answered in the Report:   

How big is the Israel data center market? 

How many data centers are there in Israel? 

What is the growth rate of the Israel data center market? 

What are the driving factors in the Israel data center market? 

 

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