| Study Period | 2024 - 2031 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2031 |
| Market Size (2025) | USD 0.37 Million |
| Market Size (2031) | USD 0.65 Million |
| CAGR (2025 - 2031) | 9.60 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Israel Data Center Rack Market Analysis
The Israel Data Center Rack Market size is estimated at USD 0.37 million in 2025, and is expected to reach USD 0.65 million by 2031, at a CAGR of 9.6% during the forecast period (2025-2031).
- The upcoming IT load capacity of the Ireland data center construction market is expected to reach over 270 MW by 2029.
- The country's construction of raised floor area is expected to increase by 0.9 million sq. ft by 2029.
- The country's total number of racks to be installed is expected to reach 49,737 units by 2029. Tel Aviv is expected to house the maximum number of racks by 2029.
- There are close to 3 submarine cable systems connecting Israel, and many are under construction. One such submarine cable, estimated to be built by the end of 2024, is Blue, which stretches over 4,696 Kilometers with landing points in Tel Aviv.
Israel Data Center Rack Market Trends
IT and Telecom to have significant market share
- The manufacturing industry accounted for an IT load capacity of 40.3 MW in 2022, constituting a significant share of the total IT load utilization. This is down to different manufacturing sectors choosing digitalization, including aerospace and defense, telecommunications equipment, aviation communications, chemical products, computer hardware and software, and others.
- By the end of March 2022, Israel was among 8 countries in the MENA region to launch commercial 5G. The industry-grade demand for a minimal latency rate would drive the growth of the telecom industry in the country. Similarly, as 5G gains traction for the general public too, it would generate more demand for the data centers to provide the platform, facilitating the system requirements for the same.
- As reported in October 2022, Google Cloud facilitates cloud services for the Israeli government ministries, justifying the 28.82 MW of IT load capacity accounted for by the government sector.
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Full Rack has Majority Market Share
- In Israel, due to growing space scarcity between various companies, the full rack has a majority of market share. In order to cope with increasing rack capacity due to the rapid growth of mobile broadband and increase in Big Data Analytics combined with cloud computing, which makes it necessary to build a fully rack equipped data center.
- Companies increasingly rely on data centres for efficient management of their databases and storage, as they generate significant amounts of data every day. The main driving factor for data centre rack usage is therefore the increased deployment of fully configured data centres. Also, growth of the market is being influenced by growing demand for IT services and investments made by large companies.
- At first, there was a limited focus on rack space in data centres; only size and cost were taken into account during deployment. Nevertheless, there is an opportunity for increased use of rack space in the data center as more and more users from different sectors such as online banking, telecommunications, media and entertainment, and others are adopting applications with higher density.
- Further, the total data center size reached an IT load capacity of 129.4 MW in 2021. It is expected to rise from 142.4 MW in 2022 to 277.2 MW in 2029 at a CAGR of 9.55%.
- As the market grows, it caters to the increasing needs of global platforms and companies, creating a demand for larger data centers and gradually establishing the need for massive data centers. Technologies like blockchain, cloud, and Big Data used by Israeli startups require more computing space, creating demand for bigger capacity facilities.
- The facilities to be built in the coming years may include massive data center facilities with a 3 MW IT load capacity. This would invite more investment from other service providers. Large cloud services aggregators like Google, Amazon Web Services, and Oracle introducing advanced data center facilities continue to shape the market for growth. This is expected to create opportunites for the rack vendors stuided in the market.
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Israel Data Center Rack Industry Overview
The Israel Data Center Rack Market is fairly consolidated with significant players such as Rittal GMBH & Co.KG, Schneider Electric SE, Legrand SA, Dell Inc., and Hewlett Packard Enterprise.
Israel Data Center Rack Market Leaders
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Eaton Corporation
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Black Box Corporation
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Rittal GMBH & Co.KG
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Schneider Electric SE
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Vertic Group Corp.
- *Disclaimer: Major Players sorted in no particular order
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Israel Data Center Rack Market News
- October 2023 - In contrast to the smaller installations provided by the iRack solution, NetRack created iRack Block to cater to large requirements primarily. The rack is a step toward intelligent infra capsules or modular data centers because it includes self-cooking, self-powered, and self-contained capabilities.
- June 2023 - To deliver streamlined, zero-touch edge computing, data centers enabled the next wave of industrial innovation. Schneider Electric, the leader in the digital transformation of energy management and automation, announced its partnership with Stratus Technologies, a global leader in simplified, protected, and autonomous edge computing platforms, and Avnet Integrated.
Israel Data Center Rack Industry Segmentation
A data center rack is a physical enclosure made up of usually steel, housing electronic framework. It is designed to house servers, networking and communication devices, cables and other data center computing peripherals.
The Israel data center rack market is segmented by rack size (quarter rack, half rack and full rack), end-user industry (BFSI, IT and telecom, government, media and entertainment). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.
| By Rack Size | Quarter Rack |
| Half Rack | |
| Full Rack | |
| By End User | IT & Telecommunication |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End User |
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Israel Data Center Rack Market Research Faqs
How big is the Israel Data Center Rack Market?
The Israel Data Center Rack Market size is expected to reach USD 0.37 million in 2025 and grow at a CAGR of 9.60% to reach USD 0.65 million by 2031.
What is the current Israel Data Center Rack Market size?
In 2025, the Israel Data Center Rack Market size is expected to reach USD 0.37 million.
Who are the key players in Israel Data Center Rack Market?
Eaton Corporation, Black Box Corporation, Rittal GMBH & Co.KG, Schneider Electric SE and Vertic Group Corp. are the major companies operating in the Israel Data Center Rack Market.
What years does this Israel Data Center Rack Market cover, and what was the market size in 2024?
In 2024, the Israel Data Center Rack Market size was estimated at USD 0.33 million. The report covers the Israel Data Center Rack Market historical market size for years: 2024. The report also forecasts the Israel Data Center Rack Market size for years: 2025, 2026, 2027, 2028, 2029, 2030 and 2031.
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Israel Data Center Rack Industry Report
Statistics for the 2025 Israel Data Center Rack market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Israel Data Center Rack analysis includes a market forecast outlook for 2025 to 2031 and historical overview. Get a sample of this industry analysis as a free report PDF download.
