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Israel Data Center Market - Investment Analysis & Growth Opportunities 2026-2031

Publisher Arizton Advisory and Intelligence
Published Apr 01, 2026
Length 117 Pages
SKU # ARZ21052384

Description

The Israel data center market size is expected grow at a CAGR of 22.43% from 2025 to 2031.

ISRAEL DATA CENTER MARKET - KEY HIGHLIGHTS
  • The Israel data center market continues to experience robust growth, driven by the country’s advanced technological ecosystem, increasing adoption of cloud services, AI workloads, and digital transformation initiatives across enterprises
  • Tel Aviv is the top data center destination in the country. It continues to be the leading hub for data center expansion in Israel, marked by a concentrated growth in advanced facilities and dedicated cloud regions. There are 6 existing and 3 upcoming data centers in the city.
  • Industrial electricity prices depend on the area of data center construction in Israel. As of 2025, the industrial electricity price ranged between 0.10 kWh and 0.15 kWh in Israel, which is comparatively higher than in the UAE and Saudi Arabia.
  • In February 2026, the Israeli Cabinet decided to remove regulatory barriers and speed up planning and construction for AI-oriented server farms and data center facilities. A centralized Single Approval Authority mechanism has been introduced to streamline permitting processes for qualifying AI infrastructure projects. This initiative reduces typical planning and approval timelines from approximately 24–36 months to an estimated 12–18 months.
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.
  • Data center 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 industry analysis, and insightful predictions about the Israel data center market size during the forecast period.
  • Snapshot of existing and upcoming third-party data center facilities in Israel
  • Facilities Covered (Existing): 34
  • Facilities Identified (Upcoming): 24
  • Coverage: 14 Cities
  • Existing vs. Upcoming (Data Center Area)
  • Existing vs. Upcoming (IT Load Capacity)
  • Data center colocation market in Israel
  • Colocation Market Revenue & Forecast (2022-2031)
  • Retail & Wholesale Colocation Revenue (2022-2031)
  • Retail & Wholesale Colocation Pricing
  • Israel data center landscape 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 aspect of the market.
ISRAEL DATA CENTER MARKET VENDOR LANDSCAPE
  • In the current landscape of colocation investors, several established companies play a significant role. Notable players include EdgeConneX, Compass Datacenters, Bynet Data Communications, MedOne, Serverfarm among others.
  • The market has witnessed several new players emerge over the past few years. The notable entrants Anan, Mega DC, MultiDC, NED, Keystone, Serverz Data Center, and Techtonic.
  • All three major global cloud providers, AWS, Google, and Microsoft, operate dedicated cloud regions in the country, each with three availability zones, while Oracle Cloud maintains operations in Jerusalem and plans a new cloud region in Tel Aviv.
  • In January 2025, Keystone, the Israeli infrastructure fund, filed an application with the Be’er Tuvia local planning and building committee for the development of two data center facilities with a total investment of over $388 million. If the project is approved, it is likely to go online by 2027.
  • Hyperscalers are accelerating investment in Israel, positioning the country as a key regional hub for cloud and AI infrastructure in Southeast Asia. Previously In December 2025, NVIDIA announced plans to build the largest server farm in Israel at the Mevo Carmel industrial zone, investing about $1.5 billion in infrastructure. Then, in November 2025, AWS signed a letter of intent to lease a 42-dunam (10.5-acre) lot from Rotshtein Real Estate, in the Sharon region, to expand its data center footprint in Israel by doubling its capacity.
IT Infrastructure Providers:
  • Broadcom
  • Cisco
  • Dell Technologies
  • Fujitsu
  • Hewlett Packard Enterprise
  • Hitachi Vantara
  • IBM
  • Lenovo
  • NetApp
  • NVIDIA
Data Center Construction Contractors & Sub-Contractors
  • Ashtrom Group
  • Auerbach HaLevy Architects
  • Amram Avraham
  • Danya Cebus
  • Dunsky Zohar Architects & Town Planners
  • Electra Group
  • Margolin Bros. Engineering & Consulting (MEC)
  • Mercury
  • MiCiM
  • Minrav Group
  • M+W Group
  • Saan Zahav
  • Shevet Binyamin
  • Skorka Architects
  • Yeda Engineering
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
  • Bezeq International
  • Bynet Data Communications
  • Compass Datacenters
  • EdgeConneX
  • Global Technical Realty (GTR)
  • MedOne
  • Microsoft
  • Oracle
  • Serverfarm
New Entrants
  • Anan
  • Mega DC
  • MultiDC
  • NED
  • Keystone
  • Serverz Data Center
  • Techtonic
EXISTING VS. UPCOMING DATA CENTERS
  • Existing Facilities in the region (Area and Power Capacity)
  • Tel Aviv
  • Other Cities
  • List of Upcoming Facilities in the region (Area and Power Capacity)
  • Tel Aviv
  • Other Cities
REPORT COVERAGE:

This report analyses the Israel data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, cooling systems, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:
  • IT Infrastructure
  • Server Infrastructure
  • Storage Infrastructure
  • Network Infrastructure
  • Electrical Infrastructure
  • UPS Systems
  • Generators
  • Transfer Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
  • Mechanical Infrastructure
  • Cooling Systems
  • Rack Cabinets
  • Other Mechanical Infrastructure
  • Cooling Systems
  • CRAC and CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers and Dry Coolers
  • Other Cooling Units
  • General Construction
  • Core & Shell Development
  • Installation & commissioning Services
  • Building & Engineering Design
  • Fire Detection & Suppression Systems
  • Physical Security
  • Data Center Infrastructure Management (DCIM)
  • Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV
KEY QUESTIONS ANSWERED:

1. How big is the Israel data center market?

2. How much MW of power capacity will be added across Israel in 2031?

3. What factors are driving Israel data center market?

Table of Contents

117 Pages
1. CHAPTER 1: EXISTING & UPCOMING THIRD-PARTY DATA CENTERS IN ISRAEL
Data Center Snapshot
Data Center Snapshot By Cities
Existing & Upcoming Data Center Supply
List of Upcoming Data Center Projects in Israel
2. CHAPTER 2: INVESTMENT OPPORTUNITIES IN ISRAEL
Microeconomic & Macroeconomic Factors for Israel Market
Impact of AI in Data Center Industry in Israel
Investment Opportunities in Israel
Digital Data in Israel
Government Rule And Regulation For Data Center
Market Investment by Area
Market Investment by Power Capacity
3. CHAPTER 3: DATA CENTER COLOCATION MARKET IN ISRAEL
Colocation Services Market in Israel
Demand Across Several Industries In Israel
Retail vs Wholesale Data Center Colocation
Colocation Pricing (Quarter Rack, Half Rack & Full Rack) & Add-ons
4. CHAPTER 4: MARKET DYNAMICS
Market Enablers
Market Trends
Market Restraints
5. CHAPTER 5: MARKET SEGMENTATION
IT Infrastructure: Market Size & Forecast
Electrical Infrastructure: Market Size & Forecast
Mechanical Infrastructure: Market Size & Forecast
General Construction: Market Size & Forecast
6. CHAPTER 6: TIER STANDARDS INVESTMENT
Tier I & II
Tier III
Tier IV
7. CHAPTER 7: KEY MARKET PARTICIPANTS
IT Infrastructure Providers
Construction Contractors & Sub-Contractors
Support Infrastructure Providers
Data Center Investors
New Entrants
8. CHAPTER 8: APPENDIX
Market Derivation
Site Selection Criteria
Quantitative Summary

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