Israel Data Center Colocation Market -Supply & Demand Analysis 2025-2030

ISRAEL DATA CENTER COLOCATION DEMAND AND SUPPLY HIGHLIGHTS

The Israel data center colocation market size was valued at USD 256 million in 2024 and is expected to reach USD 816 million by 2030, growing at a CAGR of 21.31% during the forecast period. In 2024, wholesale colocation in Israel accounted for a market share of around 21%, whereas retail colocation accounted for the remaining 78%. By 2030, this trend is projected to reverse. Retail colocation market share is estimated to decline, whereas wholesale colocation is slated to rise, driven by cloud adoption and hyperscale demand.

The Israel data center colocation market is among the major colocation data center hubs, which consists of 32 operational colocation data center facilities as of December 2024. In terms of area, Tel Aviv and Petah Tikva are the prominent locations for data center investments. Jerusalem, Rosh Haayin, Tirat Carmel, and Raanana are the emerging locations that attract data center development initiatives.

Israel’s cloud computing market is expanding rapidly, driven by government initiatives, foreign partnerships, and private sector interest. For instance, in September 2024, Salesforce launched its Hyperforce cloud platform in Israel, allowing sensitive government and corporate data to remain local. The platform, initially operating on AWS infrastructure, is suited for potential future expansion to the Google Cloud Platform.

Furthermore, some of the leading colocation operators in the Israel data center colocation market include SDS Data Center, MedOne, EdgeConneX, Bynet Data Communications, Bezeq International, Global Technical Realty, and Compass Datacenters. The possible new entrants in the Israel data center colocation market are Anan, Mega Data Centers, NED, and Techtonic.

SDS Data Center leads the IT power capacity of Israel with a market share of over 37%, reflecting its significant investment in energy-efficient and high-density infrastructure. The strong focus of the company on sustainability and large-scale deployments positions it as the dominant operator.

WHAT'S INCLUDED?

1. Transparent research methodology and insights on the industry's colocation of demand and supply.
2. The market size is available in terms of utilized white floor area, IT power capacity, and racks.
3. The market size available in terms of Core & Shell Vs Installed Vs Utilized IT Power Capacity, along with the occupancy %.
4. The study of the existing Israel data center industry landscape and insightful predictions about industry size during the forecast period.
5. An analysis of the current and future colocation demand in Israel by several industries.
6. The impact of AI on the data center industry in the Israeli industry.
7. Study on the sustainability status in the country
8. Analysis of current and future cloud operations in the country.
9. Snapshot of upcoming submarine cables and existing cloud-on-ramps services in the country.
10. Snapshot of existing and upcoming third-party data center facilities in Israel
11. Facilities Covered (Existing): 32
12. Facilities Identified (Upcoming): 27
13. Coverage: 13+ Cities
14. Existing vs. Upcoming (White Floor Area)
15. Existing vs. Upcoming (IT Load Capacity)
16. Data Center Colocation Market in Israel
17. Colocation Market Revenue & Forecast (2024-2030)
18. Retail Colocation Revenue (2024-2030)
19. Wholesale Colocation Revenue (2024-2030)
20. Retail Colocation Pricing along with Addons
21. Wholesale Colocation Pricing, along with the pricing trends
22. An analysis of the latest trends, potential opportunities, growth restraints, and prospects for the Israel data center colocation market.
23. Competitive landscape, including industry share analysis by the colocation operators based on IT power capacity and revenue.
24. The vendor landscape of each existing and upcoming colocation operator is based on the existing/ upcoming count of data centers, white floor area, IT power capacity, and data center location.