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Israel Data Center Market - Watch Out for Massive Data Center Investment, the Market is Poised to Grow by Over 6.5% During 2022-2028 - Arizton
[May 31, 2023]

Israel Data Center Market - Watch Out for Massive Data Center Investment, the Market is Poised to Grow by Over 6.5% During 2022-2028 - Arizton

CHICAGO, May 31, 2023 /PRNewswire/ -- According to the latest research report, the Israel data center market will grow at a CAGR of 6.95% during 2022-2028.

Israel Data Center Market Report by Arizton

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The Israel data center market is one of the technologically advanced markets in the Middle East region. Adopting cloud computing, expanding government initiatives, strong digitalization, and cutting-edge technologies contribute to the industry's growth. Hence, increasing the demand for colocation across Israel. The Israeli data center market commanded a sizeable portion of Middle Eastern investment in 2022. In 2022, Digital Realty, Adgar Investments & Development, and other significant investors will be present.

Additionally, the market for colocation services in Israel is dominated by regional retailers. Over the next few years, operators of wholesale colocation will have more opportunities for revenue growth due to the expanding presence of cloud service providers. Local retail colocation operators control most of the colocation services market in Israel. Expanding cloud service providers will broaden the market for wholesale colocation providers' revenue opportunities.

Israel Data Center Market Report Scope

Report Attributes


Market Size (2028)

USD 949 Million

Market Size (Area)

456 thousand sq. Feet (2028)

Market Size (Power Capacity)

90 MW (2028)

CAGR Investment (2022-2028)

6.95 %

Colocation Market Size (Revenue)

USD 262 Million (2028)

Historic Year


Base Year


Forecast Year


Market Dynamics

  •  Cloud Adoption drives Data Center Infrastructure Demand
  •  Big Data & IoT Technology Drive Data Center Investments
  •  Procurement of Renewable Energy in Israel
  •  Growth in Subsea and Inland Connectivity Driving the Demand

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Government Initiatives Towards the Development of Data Centers in Israel

The government of Israel launched its initiative - Digital Israel - which aims to harness opportunities for the digital revolution in advancing ICT technologies for economic growth and establish a smarter and faster government. Data protection in Israel is governed under the Protection of Privacy Law. All entities in Israel that hold or process personal information must abide by this law. Israeli companies working with EU-based companies are also covered under the GDPR. The Israeli government has initiated the Nimbus Project to provide cloud services to government bodies, with AWS and Google have won the tender under the Nimbus Project.

The government of Israel launched its National Digital Program, which aims to formulate a national digital policy for use in the ICT sector and the growth of digitalization in different industry verticals in the country. In May 2022, the Israeli government approved around 19 programs for the growth of digital health initiatives in the country with an investment of around $30 million. Moreover, the government of Israel supports foreign investments that will create opportunities for foreign investors willing to invest in the market in the future.

The government of Israel has been establishing foreign trade agreements to attract foreign investments in the country. For instance, the government formed The United States-Israel Free Trade Agreement (FTA) to establish import-export between US and Israel. Moreover, the Israeli government has formed free-trade agreements with Colombia.

Why Should You Buy This Research?

  • Market size available in the 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 states in the country.
  • A detailed study of the existing Israel data center market landscape, an in-depth industry 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): 20
    • Facilities Identified (Upcoming): 7
    • Coverage: 8+ Cities
    • Existing vs. Upcoming (Area)
    • Existing vs. Upcoming (IT Load Capacity)
  • Data center colocation market in Israel
    • Market Revenue & Forecast (2022-2028)
    • Retail and Wholesale Colocation Pricing
    • Retail vs. Wholesale Colocation Market
  • The Israel 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 industry.
  • A transparent research methodology and the analysis of the demand and supply aspects of the industry.

The report includes the investment in the following areas:

  • IT Infrastructure
    • Servers
    • Storage Systems
    • Network Infrastructure
  • Electrical Infrastructure
    • UPS Systems
    • Generators
    • Switches & Switchgears
    • PDUs
    • Other Electrical Infrastructure
  • Mechanical Infrastructure
    • Cooling Systems
    • Racks
    • Other Mechanical Infrastructure
  • Cooling Systems
    • CRAC & CRAH Units
    • Chiller Units
    • Cooling Towers, Condensers & Dry Coolers
    • Other Cooling Units
  • General Construction
    • Core & Shell Development
    • Installation & Commissioning Services
    • Engineering & Building Design
    • Fire Detection & Suppression Systems
    • Physical Security
    • Data Center Infrastructure Management (DCIM)
  • Tier Standard
    • Tier I & Tier II
    • Tier III

Major Vendors

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 Engineering
  • 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
  • Vertiv

Data Center Investors

  • Adgar Investments & Development
  • Amazon Web Services
  • Bezeq International
  • Bynet Data Communications
  • Compass Datacenters
  • EdgeConneX
  • Google
  • MedOne
  • Microsoft

New Entrants

  • Digital Realty
  • Global Technical Realty
  • NED Data Centers
  • Serverfarm
  • Techtonic

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Table of Content

Chapter 1: Existing & Upcoming Third-Party Data Centers in Israel

  • Historical Market Scenario
  • 15+ Unique Data Center Properties
  • Data Center IT Load Capacity
  • Data Center White Floor Area
  • Existing Vs Upcoming Data Center Capacity by Cities
  • List of Upcoming Data Center Projects

Chapter 2: Investment Opportunities in Israel

  • Microeconomic and Macroeconomic Factors of the Israel Market
  • Investment Opportunities in Israel
  • Investment by Area
  • Investment by Power Capacity

Chapter 3: Data Center Colocation Market in Israel

  • Colocation Services Market in Israel
  • Retail vs Wholesale Data Center Colocation
  • Colocation Pricing (Quarter Rack, Half Rack, Full Rack) & Add-on

Chapter 4: Market Dynamics

  • Market Drivers
  • Market Trends
  • Market Restraints

Chapter 5: Market Segmentation

  • IT Infrastructure: Market Size & Forecast
  • Electrical Infrastructure: Market Size & Forecast
  • Mechanical Infrastructure: Market Size & Forecast
  • Break-up of Construction Cost 2022
  • General Construction Services: Market Size & Forecast

Chapter 6: Tier Standards Investment

  • Tier I & II
  • Tier III
  • Tier IV

Chapter 7: Key Market Participants

  • IT Infrastructure Providers
  • Construction Contractors
  • Support Infrastructure Providers
  • Data Center Investors
  • New Entrants

Chapter 8: Appendix

  • Market Derivation
  • Quantitative Summary

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