Israel Data Center Construction Market Size
| Study Period | 2024 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 121.20 Million |
| Market Size (2030) | USD 211.5 Million |
| CAGR (2024 - 2030) | 9.65 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Israel Data Center Construction Market Analysis
The Israel Data Center Construction Market size is estimated at USD 121.20 million in 2024, and is expected to reach USD 211.5 million by 2030, growing at a CAGR of 9.65% during the forecast period (2024-2030).
- Under Construction IT Load Capacity: The upcoming IT load capacity of the Israel data center construction market is expected to reach 277.2 MW in six years.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by 0.9 million sq. ft in six years.
- Planned Racks: The country's total number of racks to be installed is expected to reach 49,737 units in six years. Tel Aviv is expected to house the maximum number of racks in six years.
- Planned Submarine Cables: Close to four submarine cable systems connect Israel; many are under construction. One such submarine cable, estimated to be built by the end of next year, is Blue, which stretches over 4696 km with landing points in Tel Aviv.
Israel Data Center Construction Market Trends
IT and Telecom to have significant market share
- The media and entertainment industry accounted for a 1.20 MW IT load capacity in 2021, inhibiting growth from 1.39 MW in 2022 to 3.80 MW in six years at a CAGR of 15.02%. 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. By the end of March 2022, Israel was among eight 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, it would generate more demand for the data centers to provide the platform, facilitating the system requirements. 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.
Tel Aviv is the major hotspot in the country
- Tel Aviv is the major hotspot in the country, accounting for 38.80 MW of the IT load capacity, exhibiting stagnant growth during the forecast period. The region is called a major technological hub, with its proximity to crucial government facilities, power resources, and technological advancements required for empowering and operating data centers.
- This also includes several client companies in and around Tel Aviv, leveraging faster internet connectivity through the facilities. Petah Tikva benefits from the proximity of energy resources and business parks to Tel Aviv, including several data centers. Also, both locations leverage efficient disaster management services, which are essential for the uninterrupted functionality of data center facilities.
Israel Data Center Construction Industry Overview
The Israel Data Center Construction Market is semi- consolidated, with significant companies such as AECOM, Rittal GmbH & Co. KG, STULZ GMBH, Delta Electronics and M+W Group (Exyte).
Israel Data Center Construction Market Leaders
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STULZ GMBH
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M+W Group (Exyte)
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Delta Electronics
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Rittal GmbH & Co. KG
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AECOM
*Disclaimer: Major Players sorted in no particular order
Israel Data Center Construction Market News
- July 2022: Berkshire Partners announced to pay more than USD 215 million to acquire a 49% stake in MedOne. The company was evaluated at NIS 1.5 billion (USD 430 Million).
- August 2021: EdgeConneX announced its agreement to acquire Global Data Center (GDC), an Israeli data center operator based in Herzliya district. Once completed, the acquisition would bring two new facilities into the EdgeConneX global data center platform, including GDC's highly secure underground facilities in Herzliya and Petah Tikva, near Tel Aviv.
Israel Data Center Construction Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumption & Market Definition
- 1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. MARKET INSIGHTS
5. Market Overview
6. Industry Attractiveness - Porter's Five Forces Analysis
- 6.1 Bargaining Power of Suppliers
- 6.2 Bargaining Power of Buyers
- 6.3 Threat of New Entrants
- 6.4 Threat of Substitutes
- 6.5 Degree of Competition
7. Key Industry Statistics
- 7.1 Planned/Under Construction IT Load Capacity
- 7.2 Planned/Under Construction Raised Floor Space
- 7.3 Planned/Under Construction Racks
- 7.4 Planned Submarine Cable
8. MARKET DYNAMICS
9. Market Drivers
- 9.1 Rising Adoption of Renewable Energy Sources
- 9.2 Increase in 5G Deployments Fueling Edge Data Center Investments
- 9.3 Smart City Initiatives Driving Data Center Investments
10. Market Restraints
- 10.1 Security Challenges in Data Centers
- 10.2 Location Constraints on the Development of Data Centers
11. MARKET SEGMENTATION
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11.1 By Infrastructure
- 11.1.1 Electrical Infrastructure
- 11.1.1.1 UPS Systems
- 11.1.1.2 Other Electrical Infrastructures
- 11.1.2 Mechanical Infrastructure
- 11.1.2.1 Cooling Systems
- 11.1.2.2 Racks
- 11.1.2.3 Other Mechanical Infrastructures
- 11.1.3 Other Infrastructures
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11.2 By End User
- 11.2.1 IT & Telecommunication
- 11.2.2 BFSI
- 11.2.3 Government
- 11.2.4 Healthcare
- 11.2.5 Other End Users
12. COMPETITIVE LANDSCAPE
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12.1 Company Profiles*
- 12.1.1 Turner Construction Co.
- 12.1.2 DPR Construction Inc.
- 12.1.3 Fortis Construction
- 12.1.4 AECOM Limited
- 12.1.5 Canovate Group
- 12.1.6 M+W Group (Exyte)
- 12.1.7 Mercury Engineering
- 12.1.8 Caterpillar Inc.
- 12.1.9 Rittal GmbH & Co. KG
- 12.1.10 STULZ GMBH
- 12.1.11 ABB Ltd.
13. INVESTMENT ANALYSIS
14. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityIsrael Data Center Construction Industry Segmentation
A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with them. Under data center construction, we track the capital expenditure incurred while building the existing DC facilities and estimate the future capex based on upcoming DC facilities.
Israel Data Center Construction Market is segmented by infrastructure (electrical infrastructure (UPS systems, other electrical infrastructure), mechanical infrastructure (cooling systems, racks, other mechanical infrastructure), and other infrastructure), by end user (banking, financial services, and insurance, IT and telecommunications, government, healthcare, and other end users). The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| By Infrastructure | Electrical Infrastructure | UPS Systems |
| Other Electrical Infrastructures | ||
| By Infrastructure | Mechanical Infrastructure | Cooling Systems |
| Racks | ||
| Other Mechanical Infrastructures | ||
| By Infrastructure | Other Infrastructures | |
| By End User | IT & Telecommunication | |
| BFSI | ||
| Government | ||
| Healthcare | ||
| Other End Users |
Israel Data Center Construction Market Research Faqs
How big is the Israel Data Center Construction Market?
The Israel Data Center Construction Market size is expected to reach USD 121.20 million in 2024 and grow at a CAGR of 9.65% to reach USD 211.5 million by 2030.
What is the current Israel Data Center Construction Market size?
In 2024, the Israel Data Center Construction Market size is expected to reach USD 121.20 million.
Who are the key players in Israel Data Center Construction Market?
STULZ GMBH, M+W Group (Exyte), Delta Electronics, Rittal GmbH & Co. KG and AECOM are the major companies operating in the Israel Data Center Construction Market.
What years does this Israel Data Center Construction Market cover, and what was the market size in 2023?
In 2023, the Israel Data Center Construction Market size was estimated at USD 109.50 million. The report covers the Israel Data Center Construction Market historical market size for years: . The report also forecasts the Israel Data Center Construction Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Israel Data Center Construction Industry Report
Statistics for the 2024 Israel Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Israel Data Center Construction analysis includes a market forecast outlook to for 2024 to (2024to2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
