Israel Data Center Rack Market Size study, by Rack Type (Full Rack, Half Rack, Customized Rack), by Application (IT and Telecom, Manufacturing, Government, Media and Entertainment), and Forecasts 2022-2032

Israel Data Center Rack Market Size study, by Rack Type (Full Rack, Half Rack, Customized Rack), by Application (IT and Telecom, Manufacturing, Government, Media and Entertainment), and Forecasts 2022-2032

The Israel Data Center Rack Market was valued at approximately USD 280,000 in 2023 and is anticipated to grow with a healthy growth rate of more than 9.6% over the forecast period 2024-2032. This market growth is driven by the increasing IT load capacity, which is expected to reach over 270 MW by 2029, and the expansion of raised floor areas by an additional 0.9 million sq. ft by the same year. The number of racks to be installed in Israel is projected to reach 49,737 units by 2029, with Tel Aviv expected to house the maximum number of racks.

The presence of submarine cable systems, such as the upcoming blue cable stretching over 4,696 kilometers with landing points in Tel Aviv, is set to enhance the connectivity infrastructure, further driving the demand for data center racks.

The IT and telecom sector is anticipated to hold a significant market share due to the growing digitalization across various industries, including aerospace, defense, telecommunications equipment, aviation communications, chemical products, and computer hardware and software. Israel's launch of commercial 5G in 2022 has driven the demand for data centers to support low latency and high-speed requirements. The adoption of 5G technology by the general public will further boost this demand.

Full Rack has Majority Market Share In Israel, the full rack segment holds the majority of the market share. This is driven by the need to manage growing data volumes efficiently and the demand for fully configured data centers to support mobile broadband growth, Big Data Analytics, and cloud computing. Companies are increasingly relying on data centers for efficient database and storage management, driving the deployment of fully equipped racks.

Market Drivers and Opportunities The market is driven by the growing demand for IT services, investments by large companies, and the increased deployment of fully configured data centers. The IT load capacity of data centers in Israel is expected to rise from 142.4 MW in 2022 to 277.2 MW by 2029 at a CAGR of 9.55%.

As the market expands, it meets the increasing needs of global platforms and companies, leading to the development of larger data centers. Technologies such as blockchain, cloud computing, and Big Data used by Israeli startups require more computing space, creating demand for high-capacity facilities. The construction of massive data centers with 3 MW IT load capacity is anticipated, attracting further investments from service providers.

Major market players included in this report are:

Adgar Investments and Development Ltd (Adgar Data Center)

Bezeq International General Partner Ltd

EdgeConneX Inc.

Lian Group

ServerFarm LLC

MedOne

Amazon Web Services (AWS)

Digital Realty

Compass Datacenters

Global Technical Realty

The detailed segments and sub-segment of the market are explained below:

By Rack Type
• Full Rack
• Half Rack
• Customized Rack

By Application
• IT and Telecom
• Manufacturing
• Government
• Media and Entertainment

Years considered for the study are as follows:
• Historical year – 2022
• Base year – 2023
• Forecast period – 2024 to 2032

Key Takeaways:
• Market Estimates & Forecast for 10 years from 2022 to 2032.
• Annualized revenues and regional level analysis for each market segment.
• Competitive landscape with information on major players in the market.
• Analysis of key business strategies and recommendations on future market approach.
• Analysis of competitive structure of the market.
• Demand side and supply side analysis of the market.

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