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Israel Data Center Construction Market Size (2024 - 2029)

The Israel data center construction market is projected to experience significant growth over the forecast period, with its market size expanding considerably. This growth is driven by the development of IT load capacity, raised floor space, and the installation of a substantial number of racks, particularly concentrated in Tel Aviv. Additionally, the construction of submarine cable systems, including the extensive Blue cable, is set to enhance connectivity, further contributing to the market's expansion.

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Market Size of Israel Data Center Construction Industry

Israel Data Center Construction Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 1.05 Billion
Market Size (2030) USD 1.91 Billion
CAGR (2024 - 2030) 10.54 %
Market Concentration Medium

Major Players

Israel Data Center Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

Israel Data Center Construction Market Analysis

The Israel Data Center Construction Market size is estimated at USD 1.05 billion in 2024, and is expected to reach USD 1.91 billion by 2030, growing at a CAGR of 10.54% during the forecast period (2024-2030).

Robust government support, expanding cloud services, advancements in 5G technology, smart city initiatives, IoT upgrades, and a culture of digital creativity drive rapid growth in Israel's data center market. This surge is particularly evident in the rising demand for colocation and hyperscale services.

Under Construction IT Load Capacity: The upcoming IT load capacity of the Israeli data center market is expected to reach 426 MW by 2030.

Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by 1.5 million sq. ft by 2030.

Planned Racks: The country's total number of racks to be installed is expected to reach around 76K units by 2030. Tel Aviv is expected to house the maximum number of racks in the coming years.

Planned Submarine Cables: Close to four submarine cable systems connect Israel. In 2023, a notable submarine cable, Blue, was launched. Spanning 4,696 km, it connects with landing points in Tel Aviv.

Israel Data Center Construction Industry Segmentation

Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.

The Israeli data center construction market is segmented by infrastructure (electrical infrastructure (power distribution solutions (PDU, transfer switches, switchgear, power panels, and components)), power backup solutions (UPS and generators), service - design and consulting, integration, and support and maintenance)), (mechanical infrastructure (cooling systems (immersion cooling, direct-to-chip cooling, rear door heat exchanger, and in-row and in-rack cooling)), racks, and other mechanical infrastructure)), and general construction)), and tier type (Tier 1 and 2, Tier 3, and Tier 4), and end user (banking, financial services and insurance, IT and telecommunications, government, defense, healthcare, and other end users). The market sizes and forecasts are provided in value (USD) for all the above segments.

Market Segmentation - By Infrastructure
Market Segmentation - By Electrical Infrastructure
Power Distribution Solution
PDU - Basic and Smart - Metered and Switched solutions
Transfer Switches
Static
Automatic (ATS)
Switchgear
Low-voltage
Medium-voltage
Power Panels and Components
Other Power Panels and Components
Power Backup Solutions
UPS
Generators
Service - Design and Consulting, Integration, Support, and Maintenance
Market Segmentation - By Mechanical Infrastructure
Cooling Systems
Immersion Cooling
Direct-to-chip Cooling
Rear Door Heat Exchanger
In-row and In-rack Cooling
Racks
Other Mechanical Infrastructure
General Construction
Market Segmentation - By Tier Type
Tier 1 and 2
Tier 3
Tier 4
Market Segmentation - By End User
Banking, Financial Services, and Insurance
IT and Telecommunications
Government and Defense
Healthcare
Other End Users
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Israel Data Center Construction Market Size Summary

The Israel Data Center Construction Market is poised for significant growth over the forecast period, driven by increasing demand for data center infrastructure. The market is characterized by a robust expansion in IT load capacity, raised floor space, and the number of racks, with Tel Aviv emerging as a central hub due to its technological advancements and proximity to essential resources. The region's strategic importance is further enhanced by its connection to multiple submarine cable systems, facilitating improved connectivity and supporting the burgeoning media, entertainment, and manufacturing sectors. These industries are increasingly adopting digitalization, which is expected to bolster the demand for data center services, particularly as 5G technology becomes more widespread.

The market landscape is fairly consolidated, with key players such as AECOM, Rittal GmbH & Co. KG, STULZ GMBH, Delta Electronics, and M+W Group (Exyte) leading the charge in data center construction and development. Recent strategic acquisitions, such as Berkshire Partners' stake in MedOne and EdgeConneX's acquisition of Global Data Center, highlight the ongoing consolidation and expansion efforts within the industry. These developments underscore the critical role of data centers in supporting Israel's digital infrastructure, catering to the increasing needs of government, telecom, and other sectors requiring minimal latency and robust connectivity solutions.

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Israel Data Center Construction Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION

    1. 1.1 Market Segmentation - By Infrastructure

      1. 1.1.1 Market Segmentation - By Electrical Infrastructure

        1. 1.1.1.1 Power Distribution Solution

          1. 1.1.1.1.1 PDU - Basic and Smart - Metered and Switched solutions

          2. 1.1.1.1.2 Transfer Switches

            1. 1.1.1.1.2.1 Static

            2. 1.1.1.1.2.2 Automatic (ATS)

          3. 1.1.1.1.3 Switchgear

            1. 1.1.1.1.3.1 Low-voltage

            2. 1.1.1.1.3.2 Medium-voltage

          4. 1.1.1.1.4 Power Panels and Components

          5. 1.1.1.1.5 Other Power Panels and Components

        2. 1.1.1.2 Power Backup Solutions

          1. 1.1.1.2.1 UPS

          2. 1.1.1.2.2 Generators

        3. 1.1.1.3 Service - Design and Consulting, Integration, Support, and Maintenance

      2. 1.1.2 Market Segmentation - By Mechanical Infrastructure

        1. 1.1.2.1 Cooling Systems

          1. 1.1.2.1.1 Immersion Cooling

          2. 1.1.2.1.2 Direct-to-chip Cooling

          3. 1.1.2.1.3 Rear Door Heat Exchanger

          4. 1.1.2.1.4 In-row and In-rack Cooling

        2. 1.1.2.2 Racks

        3. 1.1.2.3 Other Mechanical Infrastructure

      3. 1.1.3 General Construction

    2. 1.2 Market Segmentation - By Tier Type

      1. 1.2.1 Tier 1 and 2

      2. 1.2.2 Tier 3

      3. 1.2.3 Tier 4

    3. 1.3 Market Segmentation - By End User

      1. 1.3.1 Banking, Financial Services, and Insurance

      2. 1.3.2 IT and Telecommunications

      3. 1.3.3 Government and Defense

      4. 1.3.4 Healthcare

      5. 1.3.5 Other End Users

Israel Data Center Construction Market Size FAQs

The Israel Data Center Construction Market size is expected to reach USD 1.05 billion in 2024 and grow at a CAGR of 10.54% to reach USD 1.91 billion by 2030.

In 2024, the Israel Data Center Construction Market size is expected to reach USD 1.05 billion.

Israel Data Center Construction Market Report Snapshots

Israel Data Center Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)