Israel Data Center Construction Market Size
| Study Period | 2024 - 2030 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2030 |
| CAGR | 9.55 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Israel Data Center Construction Market Analysis
The Israel Data Center Construction Market is projected to register a CAGR of 9.55% during the forecast period.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the Israel data center construction market is expected to reach 277.2 MW in six years.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by 0.9 million sq. ft in six years.
- Planned Racks: The country's total number of racks to be installed is expected to reach 49,737 units in six years. Tel Aviv is expected to house the maximum number of racks in six years.
- Planned Submarine Cables: Close to four submarine cable systems connect Israel; many are under construction. One such submarine cable, estimated to be built by the end of next year, is Blue, which stretches over 4696 km with landing points in Tel Aviv.
Israel Data Center Construction Market Trends
IT and Telecom to have significant market share
- The media and entertainment industry accounted for a 1.20 MW IT load capacity in 2021, inhibiting growth from 1.39 MW in 2022 to 3.80 MW in six years at a CAGR of 15.02%. The manufacturing industry accounted for an IT load capacity of 40.3 MW in 2022, constituting a significant share of the total IT load utilization.
- This is down to different manufacturing sectors choosing digitalization, including aerospace and defense, telecommunications equipment, aviation communications, chemical products, computer hardware, and software. By the end of March 2022, Israel was among eight countries in the MENA region to launch commercial 5G.
- The industry-grade demand for a minimal latency rate would drive the growth of the telecom industry in the country. Similarly, as 5G gains traction for the general public, it would generate more demand for the data centers to provide the platform, facilitating the system requirements. As reported in October 2022, Google Cloud facilitates cloud services for the Israeli government ministries, justifying the 28.82 MW of IT load capacity accounted for by the government sector.
Tel Aviv is the major hotspot in the country
- Tel Aviv is the major hotspot in the country, accounting for 38.80 MW of the IT load capacity, exhibiting stagnant growth during the forecast period. The region is called a major technological hub, with its proximity to crucial government facilities, power resources, and technological advancements required for empowering and operating data centers.
- This also includes several client companies in and around Tel Aviv, leveraging faster internet connectivity through the facilities. Petah Tikva benefits from the proximity of energy resources and business parks to Tel Aviv, including several data centers. Also, both locations leverage efficient disaster management services, which are essential for the uninterrupted functionality of data center facilities.
Israel Data Center Construction Industry Overview
The Israel Data Center Construction Market is fairly consolidated, with significant companies such as AECOM, Rittal GmbH & Co. KG, STULZ GMBH, Delta Electronics and M+W Group (Exyte).
Israel Data Center Construction Market Leaders
STULZ GMBH
M+W Group (Exyte)
Delta Electronics
Rittal GmbH & Co. KG
AECOM
*Disclaimer: Major Players sorted in no particular order
Israel Data Center Construction Market News
- July 2022: Berkshire Partners announced to pay more than USD 215 million to acquire a 49% stake in MedOne. The company was evaluated at NIS 1.5 billion (USD 430 Million).
- August 2021: EdgeConneX announced its agreement to acquire Global Data Center (GDC), an Israeli data center operator based in Herzliya district. Once completed, the acquisition would bring two new facilities into the EdgeConneX global data center platform, including GDC's highly secure underground facilities in Herzliya and Petah Tikva, near Tel Aviv.
Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. MARKET INSIGHTS
5. Market Overview
6. Industry Attractiveness - Porter's Five Forces Analysis
6.1 Bargaining Power of Suppliers
6.2 Bargaining Power of Buyers
6.3 Threat of New Entrants
6.4 Threat of Substitutes
6.5 Degree of Competition
7. Key Industry Statistics
7.1 Planned/Under Construction IT Load Capacity
7.2 Planned/Under Construction Raised Floor Space
7.3 Planned/Under Construction Racks
7.4 Planned Submarine Cable
8. MARKET DYNAMICS
9. Market Drivers
9.1 Rising Adoption of Renewable Energy Sources
9.2 Increase in 5G Deployments Fueling Edge Data Center Investments
9.3 Smart City Initiatives Driving Data Center Investments
10. Market Restraints
10.1 Security Challenges in Data Centers
10.2 Location Constraints on the Development of Data Centers
11. MARKET SEGMENTATION
11.1 By Infrastructure
11.1.1 Electrical Infrastructure
11.1.1.1 UPS Systems
11.1.1.2 Other Electrical Infrastructures
11.1.2 Mechanical Infrastructure
11.1.2.1 Cooling Systems
11.1.2.2 Racks
11.1.2.3 Other Mechanical Infrastructures
11.1.3 Other Infrastructures
11.2 By End User
11.2.1 IT & Telecommunication
11.2.2 BFSI
11.2.3 Government
11.2.4 Healthcare
11.2.5 Other End Users
12. COMPETITIVE LANDSCAPE
13. Company Profiles
13.1 Turner Construction Co.
13.2 DPR Construction Inc.
13.3 Fortis Construction
13.4 ABB Ltd.
13.5 Delta Electronics
13.6 AECOM Limited
13.7 Alfa Laval AB
13.8 Canovate Group
13.9 CyrusOne Inc.
13.10 Caterpillar Inc.
13.11 Rittal GmbH & Co. KG
13.12 Legrand
13.13 Delta Group
13.14 EAE Group
13.15 Saan Zahav
13.16 AECOM
13.17 Schneider Electric SE
13.18 STULZ GMBH
13.19 M+W Group (Exyte)
13.20 Mercury Engineering
13.21 STULZ GMBH
- *List Not Exhaustive
14. INVESTMENT ANALYSIS
15. MARKET OPPORTUNITIES AND FUTURE TRENDS
Israel Data Center Construction Industry Segmentation
A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with them. Under data center construction, we track the capital expenditure incurred while building the existing DC facilities and estimate the future capex based on upcoming DC facilities.
Israel Data Center Construction Market is segmented by infrastructure (electrical infrastructure (UPS systems, other electrical infrastructure), mechanical infrastructure (cooling systems, racks, other mechanical infrastructure), and other infrastructure), by end user (banking, financial services, and insurance, IT and telecommunications, government, healthcare, and other end users). The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| By Infrastructure | |||||
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| Other Infrastructures |
| By End User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Healthcare | |
| Other End Users |
Frequently Asked Questions
What is the current Israel Data Center Construction Market size?
The Israel Data Center Construction Market is projected to register a CAGR of 9.55% during the forecast period (2024-2030)
Who are the key players in Israel Data Center Construction Market?
STULZ GMBH, M+W Group (Exyte), Delta Electronics, Rittal GmbH & Co. KG and AECOM are the major companies operating in the Israel Data Center Construction Market.
What years does this Israel Data Center Construction Market cover?
The report covers the Israel Data Center Construction Market historical market size for years: . The report also forecasts the Israel Data Center Construction Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Israel Data Center Construction Industry Report
Statistics for the 2024 Israel Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Israel Data Center Construction analysis includes a market forecast outlook to for 2024 to (2024to2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
