Press release
Israel Data Center Colocation Market Investment to Reach USD 816 Million by 2030 | Arizton
Israel Data Center Colocation Market Research Report by Arizton
According to Arizton research, the Israel data center colocation market [https://www.arizton.com/market-reports/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.
Explore the Full Market Insights: [https://www.arizton.com/market-reports/israel-data-center-colocation-market]
Report Summary:
MARKET SIZE - COLOCATION REVENUE: USD 816 Million (2030)
CAGR - COLOCATION REVENUE: 21.31% (2024-2030)
MARKET SIZE - UTILIZED WHITE FLOOR AREA: 2.67 million sq. feet (2030)
MARKET SIZE - UTILIZED RACKS: 55.75 thousand units (2030)
MARKET SIZE - UTILIZED IT POWER CAPACITY: 610 MW (2030)
BASE YEAR: 2024
FORECAST YEAR: 2025-2030
Israel Emerges as a High-Growth Hub in the Data Center Colocation Market
Israel is emerging as a key hub for data center colocation, driven by rapid cloud adoption and growing hyperscale demand. A clear shift is underway from retail-dominated colocation toward wholesale facilities, highlighting the country's evolving digital infrastructure landscape.
Tel Aviv and Petah Tikva continue to anchor major investments, while cities like Jerusalem, Rosh Haayin, Tirat Carmel, and Raanana are gaining traction as emerging data center destinations. This growth is underpinned by Israel's expanding cloud ecosystem, bolstered by government initiatives, private sector interest, and international partnerships, such as Salesforce's Hyperforce platform that ensures sensitive data remains local.
Leading operators including SDS Data Center, MedOne, EdgeConneX, Bynet, and Bezeq International dominate the market, with SDS Data Center commanding a 37% share through high-density, energy-efficient infrastructure. Meanwhile, new entrants like Anan, Mega Data Centers, NED, and Techtonic are set to intensify competition and accelerate market expansion.
Why Israel is Attracting Global Colocation Investments
* High-Density Vertical Data Centers: Providers like MedOne maximize space with multi-story Tier III facilities, delivering more power and capacity per square foot.
* Strategic Connectivity: Subsea cables like Blue-Raman (Google) and MedNautilus (Tamares Telecom) position Israel as a hub for low-latency, intercontinental data flow.
* Reliable, Sustainable Power: On-site natural gas cogeneration and N+1 redundancy ensure high availability and reduced grid dependency for clients.
* Compliance and Security: Strict data sovereignty and cybersecurity standards attract global financial institutions and defense contractors to secure Israeli facilities.
Solar Sparks Sustainability: Leading the Charge to a Carbon-Free Future
Israel is making significant shift toward building sustainable and energy-efficient data centers by adopting advanced designs, renewable energy sources, and innovative cooling technologies. These efforts align with the country's vision to reduce carbon emissions and strengthen digital infrastructure for a cleaner, greener future. With a bold target to achieve zero carbon emissions by 2050, initiatives like Zero Hour, the Israel Net Zero Platform, are setting measurable goals to cut greenhouse gas emissions and support a total energy reset. Solar energy leads the renewable mix, accounting for 93% of the country's capacity, while wind and bioenergy make up the remainder, reinforcing Israel's strategic focus on solar as the primary driver of its green energy transition.
The Future of AI and Big Data Powered by Israel's IoT-Enabled Data Center Revolution
Israel's strategic focus on Internet of Things (IoT) integration is driving a new era of data center innovation. The convergence of IoT with edge computing, real-time data analytics, and advanced cybersecurity frameworks is enhancing the efficiency, scalability, and reliability of data infrastructure. Government-backed initiatives, including the development of the Nebius supercomputer, are expanding the country's capabilities in AI and big data processing, reinforcing its leadership in next-generation technologies. With the increasing adoption of high-performance servers and energy-optimized designs, Israel's data centers are positioned to support complex digital ecosystems, enabling enterprises to harness data-driven insights while ensuring security and operational resilience.
Explore key insights and investment opportunities in Israel data center colocation market: [https://www.arizton.com/market-reports/israel-data-center-colocation-market]
Vendor Landscape
Existing Colocation Operators
* Bynet Data Communications
* EdgeConneX
* MedOne
* SDS Data Center
* Bezeq International
* Compass Datacenters
* Global Technical Realty
* Serverfarm
* Other Operators
New Operators
* Anan
* Ned Data Centers
* Kardan Israel and Geva Real Estate (multiDC)
* Keystone
* Mega Data Centers
* Serverz Data Center
* Techtonic
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What Key Findings Will Our Research Analysis Reveal?
* What is the count of existing and upcoming colocation data center facilities in Israel?
* How much MW of IT power capacity is likely to be utilized in Israel by 2030?
* What factors are driving the Israel data center colocation market?
* Who are the new entrants in the Israeli data center industry?
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About Us:
Arizton Advisory and Intelligence is an innovative and quality-driven firm that offers cutting-edge research solutions to clients worldwide. We excel in providing comprehensive market intelligence reports and advisory and consulting services.
We offer comprehensive market research reports on consumer goods & retail technology, automotive and mobility, smart tech, healthcare, life sciences, industrial machinery, chemicals, materials, I.T. and media, logistics, and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.
Arizton comprises a team of exuberant and well-experienced analysts who have mastered generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.
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