Israel Data Center Colocation Market Size Analysis

Israel Data Center Colocation Market -Supply & Demand Analysis 2024-2029

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THE ISRAEL DATA CENTER COLOCATION MARKET SIZE WAS VALUED AT USD 145 MILLION IN 2023 AND IS EXPECTED TO REACH USD 265 MILLION BY 2029, GROWING AT A CAGR OF 10.57% DURING THE FORECAST PERIOD

The Israel Data Center Colocation Market Report Includes

  1. Colocation Supply (MW, Area, Rack Capacity)
  2. Colocation Demand (MW, Area, Rack Capacity) and by End-User (Cloud/IT, BFSI, etc..)
  3. Colocation Revenue (Retail & Wholesale Colocation Services)
  4. Competitive Scenario (Market Share Analysis by Revenue & MW Capacity)

Get Insights on 27 Existing Colocation Data Center Facilities and 18 Upcoming Facilities across Israel

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ISRAEL DATA CENTER COLOCATION MARKET REPORT SCOPE

REPORT ATTRIBUTEDETAILS
MARKET SIZE - COLOCATION REVENUEUSD 265 Million (2029)
CAGR - COLOCATION REVENUE10.57% (2023-2029)
MARKET SIZE - UTILIZED WHITE FLOOR AREA2.21 million sq. feet (2029)
MARKET SIZE - UTILIZED RACKS50.85 thousand units (2029)
MARKET SIZE - UTILIZED IT POWER CAPACITY492 MW (2029)
BASE YEAR2023
FORECAST YEAR2024-2029
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COLOCATION DEMAND AND SUPPLY HIGHLIGHTS

The Israel data center colocation market size was valued at USD 145 million in 2023 and is expected to reach USD 265 million by 2029, growing at a CAGR of 10.57% during the forecast period. With over 25 active colocation facilities, Israel is a major player in the Middle East data center region. This trend is expected to persist driven by the government's Nimbus cloud project and initiatives boosting demand across Cloud, AI, manufacturing, defence, and other ICT sectors.

The Israel data center colocation market features major players, such as SDS Data Center, Bezeq International, Bynet Data Communications, MedOne, Adgar Investments & Development, and EdgeConneX. Data center investors leverage strategies, such as mergers, acquisitions, and joint ventures to enter the Israel data center industry. Notably, In June 2023, Brookfield Infrastructure and Ontario Teachers’ Pension Plan acquired Compass Datacenter from RedBird Capital Partners and the Azrieli Group. Also, multiple new entrants have been witnessed in Israel’s data center colocation market to develop hyperscale data centers namely, Serverz Data Center, Techtonic, Kardan Israel and Geva Real Estate (MULTIDC), Goldacre + The Levinstein Group (NED Data Centers), and Anan (Swiss fund Lian Group + P.A.I.)

Israel's Nimbus project alongside growing digitalization has driven a surge in hyperscale data center demand in the last two years, with AWS, Microsoft, Google, and Oracle, collocating multi-MW of capacity in the industry. Furthermore, several cloud service providers operate through colocation space via their availability zones and on-ramps presence in the country. Oracle launched its cloud region in the Bynet Data Communications underground data center in Jerusalem.

WHATS INCLUDED?

  1. Transparent research methodology and insights on the market'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 market 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. Study on sustainability status in the region
  7. Analysis of current and future cloud operations in the region.
  8. Snapshot of upcoming submarine cables and existing cloud-on-ramps services in the region.
  9. Snapshot of existing and upcoming third-party data center facilities in Israel
  10. Facilities Covered (Existing): 27
  11. Facilities Identified (Upcoming): 18
  12. Coverage: 12 Cities
  13. Existing vs. Upcoming (White Floor Area)
  14. Existing vs. Upcoming (IT Load Capacity)
  15. Data Center Colocation Market in Israel
  16. Colocation Market Revenue & Forecast (2023-2029)
  17. Retail Colocation Revenue (2023-2029)
  18. Wholesale Colocation Revenue (2023-2029)
  19. Retail Colocation Pricing along with Addons
  20. Wholesale Colocation Pricing along with the pricing trends. 
  21. An analysis of the latest trends, potential opportunities, growth restraints, and prospects for the Israel data center colocation market.
  22. Competitive landscape, including industry share analysis by the colocation operators based on IT power capacity and revenue.
  23. 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.

SNAPSHOT

The Israel data center colocation market is projected to reach USD 265 million by 2029, growing at a CAGR of 10.57% from 2023 to 2029.

The following factors are likely to contribute to the growth of the Israel data center colocation market during the forecast period:

  1. Adoption of Big Data & IoT to Boost Data Center Investments
  2. Rise in the Digital Economy in Italy
  3. Improvements in the Inland & Submarine Connectivity

Base Year: 2023

Forecast Year: 2024-2029

The report considers the present scenario of the Israel data center colocation market and its market dynamics for 2024−2029. It covers a detailed overview of several market growth enablers, restraints, and trends. The study includes the demand and supply aspects of the Israel data center colocation industry.

The report includes:

  1. Colocation Supply (MW, Area, Rack Capacity)
  2. Colocation Demand (MW, Area, Rack Capacity) and by End-User (Cloud/IT, BFSI, etc..)
  3. Colocation Revenue (Retail & Wholesale Colocation Services)
  4. Competitive Scenario (Share Analysis by Revenue & MW Capacity)

VENDOR LANDSCAPE

Existing Operators

  1. MedOne 
  2. SDS Data Center
  3. EdgeConneX (GLOBAL DATA CENTER)
  4. Adgar Investments & Development
  5. Bezeq International
  6. Bynet Data Communications
  7. 3samnet
  8. Global Technical Realty
  9. Compass Datacenters
  10. HQserv
  11. Infinity Data Center
  12. Serverfarm

Upcoming Colocation Operators

  1. Ned Data Centers
  2. Techtonic
  3. Serverz Data Center
  4. Anan
  5. Kardan Israel and Geva Real Estate (multiDC)

Frequently Asked Questions

What is the colocation data center supply (MW) in Israel by 2029?

Around 548 MW of IT power capacity will expected to be built as core & shell colocation capacity in Israel by 2029.

What is the count of existing and upcoming colocation data center facilities in Israel?

Israel has around 27 existing colocation data centers and is witnessing investment in 18 upcoming colocation data center facilities.

What factors are driving the Israel data center colocation market?

Increasing demand from cloud service providers, along with the local enterprise migration to colocation and cloud data centers, coupled with advancements in Artificial Intelligence, will drive the growth of the colocation data center market in the country.

Who are the new entrants in the Israel data center industry?

The new entrants in the data center industry include Serverz Data Center, Techtonic, Kardan Israel and Geva Real Estate (MULTIDC), Goldacre + The Levinstein Group (NED Data Centers), and Anan (Swiss fund Lian Group + P.A.I.).

For more details, please reach us at enquiry@arizton.com

ABOUT ARIZTON

ABOUT OUR DATA CENTER CAPABILITIES

RESEARCH METHODOLOGY

MARKET SCOPE

MARKET DEFINITIONS

CHAPTER 01 – MARKET SNAPSHOT

Colocation Market Snapshot

CHAPTER 02 - SUPPLY & DEMAND ANALYSIS

Existing vs. Upcoming Data Center Facilities

Market by Utilized Area

Market by Utilized Racks

Market by IT Power Capacity

Colocation Demand by Industry

CHAPTER 03 – MARKET GROWTH FACTORS

Factors Attracting Colocation Investment in Israel

Sustainability Status in Israel

Cloud On-Ramps & Investment in Israel

Submarine Cables & Inland Connectivity


CHAPTER 04 – COLOCATION REVENUE & PRICING ANALYSIS

Colocation Market by Revenue

Retail Vs. Wholesale Colocation

Retail Colocation Pricing and Addons

Wholesale Colocation Pricing

Key Pricing Trends

CHAPTER 05 - MARKET DYNAMICS

Key Trends in the Market

Key Enablers / Drivers in the Market

Key Restraints in the Market

CHAPTER 06 – COMPETITIVE LANDSCAPE

Competitive Landscape by Colocation Operators

Market Share by Colocation Revenue

Market Share by IT Power Capacity

Existing Colocation Operators

Upcoming Colocation Operator

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Frequently Asked Questions

What is the colocation data center supply (MW) in Israel by 2029?

Around 548 MW of IT power capacity will expected to be built as core & shell colocation capacity in Israel by 2029.

What is the count of existing and upcoming colocation data center facilities in Israel?

Israel has around 27 existing colocation data centers and is witnessing investment in 18 upcoming colocation data center facilities.

What factors are driving the Israel data center colocation market?

Increasing demand from cloud service providers, along with the local enterprise migration to colocation and cloud data centers, coupled with advancements in Artificial Intelligence, will drive the growth of the colocation data center market in the country.

Who are the new entrants in the Israel data center industry?

The new entrants in the data center industry include Serverz Data Center, Techtonic, Kardan Israel and Geva Real Estate (MULTIDC), Goldacre + The Levinstein Group (NED Data Centers), and Anan (Swiss fund Lian Group + P.A.I.).