Market Size of israel data center Industry
| Icons | Lable | Value |
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 174.82 MW |
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Market Volume (2029) | 277.24 MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 9.66 % |
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Fastest Growing by Tier Type | Tier 3 |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Israel Data Center Market Analysis
The Israel Data Center Market size is estimated at 174.82 MW in 2024, and is expected to reach 277.24 MW by 2029, growing at a CAGR of 9.66% during the forecast period (2024-2029).
USD 573.10 Million
Market Size in 2024
USD 919.2 Million
Market Size in 2029
9.3%
CAGR (2017-2023)
9.9%
CAGR (2024-2029)
IT Load Capacity
174.8 MW
Value, IT Load Capacity, 2024
The IT load capacity of the data center market will have steady growth and is expected to reach 277.2 MW by 2029. The construction of new large-size data center facilities underway in Tel Aviv would increase IT load capacity.
Total Raised Floor Space
Sq. Ft. 0.62 M
Volume, Raised Floor Space, 2024
The total raised floor area of the country is expected to increase to 0.9 million sq. ft by 2029. Due to technological advancement and ever-growing data transfer in the future, massive size facilities may rise.
Installed Racks
31,363
Volume, Installed Racks, 2024
The number of installed racks is expected to reach 49,737 units by 2029. With the increasing presence of global conglomerates, the ecosystem for hyperscale facilities is growing.
# of DC Operators & DC Facilities
11 and 25
Volume, DC Facilities, 2024
There are 25 colocation data center facilities in Israel. 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
40.2%
Market Share, Med 1 I.C.-1 (1999) Ltd., 2023
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.
Tier 3 data centers accounts for majority market share in 2023, and expected to maintain dominace during forecasted period
- 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.
Understand The Key Trends Shaping This Market
