Israel Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

Israel Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

The Israel Data Center Market is projected to register a CAGR of 9.55%

Key Highlights

• IT Load Capacity: The IT load capacity of the data center market will have steady growth and is expected to reach 277.2 MW by 2029.
• Raised Floor Space: The total raised floor area of the country is expected to increase to 0.9 million sq. ft by 2029.
• Installed Racks: The number of installed racks is expected to reach 49,737 units by 2029. Tel Aviv is expected to house the maximum number of racks by 2029.
• DC Facilities: There are 23 colocation data center facilities in Israel. Tel Aviv is the major hotspot in the country. The region has a cable landing station for multiple major fiber cables in Israel, with technological accessibility and the availability of a commercial 5G network.
• Leading Market Player: MedOne (Med1 I.C.-1 (1999) Ltd) was the leading player in the Israeli market in the historical period and rolled out four data center facilities with a capacity of 64 MW.

Israel Data Center Market Trends

Tier 3 is the largest Tier Type

• Tier 3 data center facilities accounted for an IT load capacity of 62.39 MW in 2022, which is projected to exhibit a CAGR of 2.25% to reach 72.89 MW in 2029.
• The increasing demand for higher redundancy rates is pushing colocation service providers to introduce more Tier 3 and Tier 4 facilities. The IT load capacity contributed by the existing and upcoming Tier 4 data center colocation facilities in Israel would account for about 66.98 MW by 2029, which would considerably support the overall market growth.
• The market would witness many cloud aggregators paying attention to the rising demand by Israeli users focusing on lesser latency and faster data transfer rates for highly responsive deployment of their software and cloud-based products.
• Tier 1 and 2 facilities were not observed in the region, as the market grows in an already developed global portfolio of data centers and fiber connectivity, highlighting how the adequate number of Tier 3 facilities is supporting the growing demand for facilitating modern technologies in Israel. The Tier 3 facilities, coupled with their associated operations and customers, would also create strong grounds for more Tier 4 facilities to surface in Israel during the forecast period.
• Several end-user service providers, including telecommunication service providers such as Bezeq International, utilize the capabilities of Tier 3 centers to cope with the rising data traffic and networking needs in Israel.

Israel Data Center Industry Overview

The Israel Data Center Market is fairly consolidated, with the top five companies occupying 91.20%. The major players in this market are Adgar Investments and Development Ltd (Adgar Data Center), Bezeq International General Partner Ltd., Bynet Data Communications Ltd., EdgeConneX, Inc. and Med 1 I.C.-1 (1999) Ltd. (sorted alphabetically).

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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