Israel Data Center Market Size Study, by IT Infrastructure (Servers, Storage Systems, Network Infrastructure), by Electrical Infrastructure (UPS Systems, Generators, Switches & Switchgear, PDUs, Other Electrical Infrastructure), by Mechanical Infrastructure (Cooling Systems, Racks, Other Mechanical Infrastructure), by Cooling Systems (CRAC and CRAH Units, Chillers Units, Cooling Towers, Condensers, and Dry Coolers, Other Cooling Units), by General Construction (Core & Shell Development, Installation & Commissioning Services, Engineering & Building Design, Fire Detection & Suppression, Physical Security, DCIM), by Tier Standard (Tier I & Tier II, Tier III, Tier IV), and Regional Forecasts 2022-2032
Israel Data Center Market is valued at approximately USD 639.21 million in 2023 and is anticipated to grow with a healthy growth rate of more than 6.07% over the forecast period 2024-2032. A data center is a specialized facility designed to house and manage large amounts of electronic data and IT equipment. It serves as a central location for the storage, processing, and dissemination of data and applications Data centers are critical for businesses and organizations that require reliable, scalable, and secure infrastructure to manage their IT operations. They can be owned and operated by the organization itself (enterprise data centers) or leased from third-party providers (colocation data centers). The Israel data center market is experiencing rapid expansion, driven by a myriad of factors including strong governmental support, advancements in cloud computing, the advent of 5G technology, smart city initiatives, and increasing digital innovation across various sectors. This market's robust growth trajectory is further reinforced by the presence of major cloud service providers such as Google, Microsoft, Oracle, and Amazon Web Services, along with local hyperscale providers such as Compass Datacenters and Bynet Data Communications. Notably, Google and Oracle are planning to establish new cloud regions in Israel. The focus on renewable energy sources is also prominent among data center operators in Israel. For instance, Amazon Web Services (AWS) is constructing a data center powered entirely by smart grid technology, with a substantial capacity of around 48 MW.
The burgeoning demand for data centers in Israel can be attributed to the widespread adoption of IoT technologies across diverse sectors such as agriculture, smart cities, manufacturing, defense, and healthcare. Tel Aviv, Petah Tikva, and Haifa are emerging as prime locations for data center investments, bolstered by an expanding pool of STEM graduates and increasing foreign investments. This has led to higher data center deployments and more job opportunities. Furthermore, the inland connectivity in Israel is improving with the establishment of significant internet exchange points such as the Israeli Internet Exchange (IIX) in Tel Aviv. The commercial introduction of 5G by major telecom companies like Cellcom, Pelephone, HOT Mobile, and Partner is further propelling data center developments.
Major market players included in this report are:Digital Realty
Bezeq International
Compass Datacenters
EdgeConneX
MedOne
Global Technical Realty
NED Data Centers
Serverfarm
Techtonic
Amazon Web Services (AWS)
Microsoft
Google
Oracle
Bynet Data Communications
ANAN
The detailed segments and sub-segment of the market are explained below:By IT Infrastructure:
Servers
Storage Systems
Network Infrastructure
By Electrical Infrastructure:
UPS Systems
Generators
Switches & Switchgear
PDUs
Other Electrical Infrastructure
By Mechanical Infrastructure:
Cooling Systems
Racks
Other Mechanical Infrastructure
By Cooling Systems:
CRAC and CRAH Units
Chillers Units
Cooling Towers, Condensers, and Dry Coolers
Other Cooling Units
By General Construction:
Core & Shell Development
Installation & Commissioning Services
Engineering & Building Design
Fire Detection & Suppression
Physical Security
DCIM
By Tier Standard:
Tier I & Tier II
Tier III
Tier IV
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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