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 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

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 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 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
Mechanical Infrastructure
Cooling Systems
Racks
Other Mechanical Infrastructures
Other Infrastructures
By End User
IT & Telecommunication
BFSI
Government
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 INSIGHTS

  2. 2. MARKET DYNAMICS

  3. 3. MARKET SEGMENTATION

    1. 3.1 By Infrastructure

      1. 3.1.1 Electrical Infrastructure

        1. 3.1.1.1 UPS Systems

        2. 3.1.1.2 Other Electrical Infrastructures

      2. 3.1.2 Mechanical Infrastructure

        1. 3.1.2.1 Cooling Systems

        2. 3.1.2.2 Racks

        3. 3.1.2.3 Other Mechanical Infrastructures

      3. 3.1.3 Other Infrastructures

    2. 3.2 By End User

      1. 3.2.1 IT & Telecommunication

      2. 3.2.2 BFSI

      3. 3.2.3 Government

      4. 3.2.4 Healthcare

      5. 3.2.5 Other End Users

Israel Data Center Construction Market Size FAQs

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.

In 2024, the Israel Data Center Construction Market size is expected to reach USD 121.20 million.

Israel Data Center Construction Market Report Snapshots

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