Israel Data Center Market - Investment Analysis & Growth Opportunities 2023-2028

MARKET OUTLOOK

The Israel data center market size will witness investments of USD 949 million by 2028, growing at a CAGR of 6.95% during the forecast period. Smart city development, industrial zones, and others aid the country's data center area growth. The government has set up smart cities such as Tel Aviv (with an initiative AutoTel), Modiin, and Jerusalem that are aiding the growth of industrial land in the country. Further, the market has started focusing on sustainability with renewable energy adoption. As of H1 2022, renewable energy generation in the country was around 5.7 TWh, of which 95% was generated from solar energy.

The Israel data center market is one of the technologically advanced markets in the Middle East region. The industry’s growth is aided by factors such as the penetration of cloud computing, growing government strategies, strong digitalization, and advanced technologies, leading to increased colocation demand and others. In 2022, in terms of investment, the Israel data center market held a significant share in the Middle East region. Some major investors in 2022 include Digital Realty, Adgar Investments & Development, and others. Moreover, local retail colocation operators dominate the colocation services market in Israel. The growing presence of cloud service providers will grow the revenue opportunities for wholesale colocation operators over the coming years.

KEY HIGHLIGHTS

• Global cloud service providers have started investing more to increase their presence in the industry. Operators such as AWS, Oracle Cloud, Google Cloud, and Microsoft Azure are present in the country either by cloud regions or on-ramp colocation.
• Government and operators in the country have started focusing on sustainability and are increasing their investments in adopting green energy sources. For instance, the government has set a target for around 40% of renewable energy in the country’s energy mix by 2030.
• The industry is also witnessing significant growth in 5G connectivity. Telecom operators such as Pelephone, HOT Mobile, and Partner have deployed 5G services nationwide. 5G services are used in various industries for efficient results. For instance, Israel’s Poria Hospital announced the usage of 5G connectivity for digital medicine support by doctors.
• The Israel data center market has witnessed strong growth in technology penetration, such as adopting big data & IoT solutions. For instance, in December 2022, the government deployed medical big data solution autoimmune research in the country.
• Organizations such as Microsoft have been offering skill training in the country for the growing availability of a skilled workforce. For instance, Microsoft has partnered with Israel Aerospace Industries to provide cyber training in the country.
• Regarding submarine cable connectivity, the Israel data center market has around three submarine cables connecting the country to major markets such as Italy, Cyprus, Greece, and Turkey.

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.

VENDOR LANDSCAPE

• The Israel data center market has the presence of several local and global operators, such as Adgar Investments & Development, Bezeq International, Bynet Data Communications, Compass Datacenters, EdgeConneX, MedOne, and others.
• Growth opportunities in the market have attracted new investors such as Quantum Switch Tamasuk, Digital Realty, Global Technical Realty, NED Data Centers, Serverfarm, and Techtonic have entered the Israel data center market. The rapid increase in investors will increase the competitiveness in the market in terms of colocation space supply in the coming years.
• Operators in the country are also taking several initiatives for sustainable operations. For instance, Amazon Web Services is developing a smart grid project in the country - Israel Data Centers Project.
• In terms of construction contractors, the market has several local and global construction contractors providing their services. For instance, Mercury Engineering is responsible for developing Global Technical Realty’s (GTR) Petah Tikva data center facility.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the region (Area and Power Capacity)
• Petah Tikva
• Tel Aviv
• Other Cities
• List of Upcoming Facilities in the region (Area and Power Capacity)

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, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

• 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

VENDOR LANDSCAPE

• 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, STULZ, 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.