Israel Data Center Cooling Market Size
| Study Period | 2017 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.03 Billion |
| Market Size (2030) | USD 0.08 Billion |
| CAGR (2024 - 2030) | 15.40 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Israel Data Center Cooling Market Analysis
The Israel Data Center Cooling Market size is estimated at USD 0.03 billion in 2024, and is expected to reach USD 0.08 billion by 2030, growing at a CAGR of 15.40% during the forecast period (2024-2030).
- The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some major factors driving the demand for data centers.
- Under Construction IT Load Capacity: The IT load capacity of the Israeli data center cooling market is expected to surpass 426 MW by 2030.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by more than 1.5 million sq. ft by 2030.
- Planned Racks: The country's total number of racks to be installed is expected to reach 76K units by 2029. Tel Aviv is expected to house the maximum number of racks by 2030.
- Planned Submarine Cables: There are several submarine cables under construction. One such cable, Blue, is estimated to start service in 2024. It stretches over 4,696 kilometers and has landing points from Tel Aviv.
- New data centers across the country are focusing on implementing state-of-the-art monitoring systems to mitigate the risks associated with extreme weather events. Many use the latest, more energy-efficient cooling technologies, such as redundant cooling systems, smart monitoring technologies, and backup power generators, to ensure consistency of temperature in the event of power interruptions. Direct liquid cooling uses a higher thermal transfer of water to a more efficient cooling device.
- The average winter temperature is between 5 °C (40 °F) and 15 °C (60 °F), and the average summer temperature is between 27 °C (80 °F) and over 32 °C (90 °F). Winters can vary widely across the country, with frequent cold, fog, and snow periods in the north and more pleasant weather in the south. DC cooling is done in the DC facilities depending on climatic conditions.
Israel Data Center Cooling Market Trends
The IT and Telecom Segment is Expected to Hold a Significant Market Share
- The Israeli Ministry of Defense has established a secure "landing zone" within Google Cloud. This entry point enables the ministry to utilize Google's computing infrastructure for data storage, processing, and AI services. As per a draft contract from March 2024, the ministry enlisted Google's consulting services to broaden its Cloud access, aiming to enable "multiple units" to leverage automation technologies. The contract indicated that Google charged the Israeli Ministry of Defense more than USD 1 million for these consulting services.
- Between 2022 and 2030, the Google Cloud region in Israel is projected to add a total of USD 7.6 billion to the nation's GDP. Furthermore, by 2030, it is expected to create 21,200 jobs. These figures underscore the burgeoning cloud business landscape in Israel.
- In July 2024, Vultr unveiled its latest cloud data center in Tel Aviv, Israel. This marked a significant milestone in Vultr's mission to democratize access to high-performance, affordable cloud computing. As its inaugural data center in Israel, this facility promises businesses and developers in the region enhanced access to a suite of services. These include high-performance, low-latency cloud computing, cloud computing instances, cloud storage, managed Kubernetes, managed databases, and bare metal services.
- The country is prioritizing the expansion of its 5G network and broadening its coverage. In April 2024, Pelephone activated its 5G network core in Israel, unveiling the MAX G5 network. The new packages promise an enriched customer experience featuring high-speed browsing, prioritized calls, and enhanced network services. Such instances in the market are expected to create more need for data centers, boosting the demand for data center cooling infrastructure in the coming years.
Liquid Cooling is Expected to Hold a Significant Share
- Liquid cooling offers many benefits in data centers, making it an attractive option for cooling computing environments with high performance. It is more energy-efficient than conventional air conditioning. It reduces the need for overcooling and improves the energy efficiency of data centers by providing precise temperature control.
- In Israeli data centers, in order to serve the growing requirement of data storage in the region, the key data center operators are coming up with huge IT load capacities. This results in generating more heat from the servers, which require cooling solutions that provide efficiency and capacity benefits. In February 2024, MedOne, an Israeli data center company, announced plans for two new underground data centers situated just outside Tel Aviv. Spanning roughly 30,000 sq. m (322,920 sq. ft), the facilities will occupy three underground floors. The inaugural facility, positioned north of Tel Aviv, is set to commence operations in 2026, followed by the second facility, slated for a 2027 launch.
- The region is 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.
- Direct-to-chip liquid cooling is revolutionizing the Middle Eastern data center landscape, majorly focusing on the United Arab Emirates, Saudi Arabia, Israel, and other hotspots. The Vertiv Liebert XDU Coolant Distribution Unit stands out as a game-changer in data center cooling. Tailored for the intense heat output of cutting-edge technologies like AI and HPC, this system efficiently handles CPUs and GPUs, managing to dissipate a remarkable 75% of the generated heat.
Israel Data Center Cooling Industry Overview
The Israeli data center cooling market is consolidated as the benefits offered by the technology and support from the government by imposing efficiency regulations on data centers are expected to help the growth of the data center cooling market directly. Market penetration is growing with the strong presence of major players such as Stulz GmbH, Accelsius, Schneider Electric SE, Daikin Applied Israel, and Mitsubishi Electric Corporation.
Israel Data Center Cooling Market Leaders
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Stulz GmbH
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Accelsius
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Schneider Electric SE
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Daikin Applied Israel
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Mitsubishi Electric Corporation
*Disclaimer: Major Players sorted in no particular order
Israel Data Center Cooling Market News
- April 2024: Accelsius, known for its patented NeuCoolTM 2-Phase DTC liquid cooling systems that deliver unmatched high-performance computing and compute density for data center and edge computer operators, announced a strategic partnership with OptiCool Technologies. Together with OptiCool's active RDHx Cool Door, it aims to expedite the development of waterless, direct-to-chip liquid cooling systems, targeting a swiftly growing market.
- January 2024: Data center firm Aligned launched a new liquid cooling system called DeltaFlow. The liquid cooling technology is designed to support high-density computing requirements and supercomputers. It can cool densities up to 300 kW per rack. The new DeltaFlow system works simultaneously with Aligned’s air-cooled Delta technology, enabling no change in power delivery or existing data hall temperatures.
Israel Data Center Cooling 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
- 4.1 Market Overview
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4.2 Key cost considerations for Cooling
- 4.2.1 Analysis of the key cost overheads related to DC operations with an eye on DC Cooling
- 4.2.2 Comparative Study of the cost and operational considerations related to each Cooling technology based on key factors such as design complexity, PUE, advantages, drawbacks, extent of utilization of natural weather conditions)
- 4.2.3 Key innovations and developments in Data Center Cooling
- 4.2.4 Key energy efficiency practices adopted in Data Centers
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Government initiatives and rising demand for digitalization are propelling market growth.
- 5.1.2 Increasing Cloud based businesses drives the demand for the studied market
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5.2 Market Challenges
- 5.2.1 Dynamic nature of regulations on cooling solutions
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5.3 Market Opportunities
- 5.3.1 Adoption of AI in the Country Drives the Demand for Studied Market
- 5.4 Industry Ecosystem Analysis
6. ANALYSIS OF THE CURRENT DATA CENTER FOOTPRINT IN THE COUNTRY
- 6.1 Analysis of IT Load Capacity & Area footprint of Data Centers (for the period of 2017-2030)
- 6.2 Analysis of the current DC hotspots and scope for future expansion in the Country
- 6.3 Analysis of major Data Center Contractors and Operators in the Country
7. MARKET SEGMENTATION
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7.1 By Cooling Technology
- 7.1.1 Air-based Cooling
- 7.1.1.1 Chiller and Economizer
- 7.1.1.2 CRAH
- 7.1.1.3 Cooling Tower (covers direct, indirect & two-stage cooling)
- 7.1.1.4 Others
- 7.1.2 Liquid-based Cooling
- 7.1.2.1 Immersion Cooling
- 7.1.2.2 Direct-to-Chip Cooling
- 7.1.2.3 Rear-Door Heat Exchanger
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7.2 By Type
- 7.2.1 Hyperscalers (owned & Leased)
- 7.2.2 Enterprise (On-premise)
- 7.2.3 Colocation
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7.3 By End user Vertical
- 7.3.1 IT & Telecom
- 7.3.2 Retail & Consumer Goods
- 7.3.3 Healthcare
- 7.3.4 Media & Entertainment
- 7.3.5 Federal & Institutional agencies
- 7.3.6 Other end-users
8. COMPETITIVE LANDSCAPE
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8.1 Company Profiles
- 8.1.1 Stulz GmbH
- 8.1.2 Accelsius
- 8.1.3 Schneider Electric SE
- 8.1.4 Daikin Applied Israel
- 8.1.5 Mitsubishi Electric Corporation
- 8.1.6 Kelvion Holding GmbH
- 8.1.7 Johnson Controls International PLC
- 8.1.8 Munters
- 8.1.9 Alfa Laval AB
- 8.1.10 Emerson Electric Co.
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. MARKET OPPORTUNITIES AND FUTURE TRENDS
11. ABOUT US
** Subject To AvailablityIsrael Data Center Cooling Industry Segmentation
Data center cooling is a set of techniques and technologies to maintain optimal operating temperatures in data center environments. Data center cooling is important because data centers house many computer servers and network equipment that generate heat during operation. Efficient cooling systems are used to dissipate this heat and prevent equipment from overheating, ensuring continued reliable operation of the data center. Various methods, such as air conditioning, liquid cooling, and hot/cold aisle containment, are commonly used to control temperature and humidity in data centers.
The Israeli data center cooling market is segmented by technology (air-based cooling (chiller and economizer, CRAH, cooling towers, and others), liquid-based cooling (immersion cooling, direct-to-chip cooling, and rear-door heat exchanger)), type of data center (hyperscaler, enterprise, and colocation), and end-user industry (IT and telecom, retail and consumer goods, healthcare, media and entertainment, federal and institutional agencies, and other end-user industries).
| By Cooling Technology | Air-based Cooling | Chiller and Economizer |
| CRAH | ||
| Cooling Tower (covers direct, indirect & two-stage cooling) | ||
| Others | ||
| By Cooling Technology | Liquid-based Cooling | Immersion Cooling |
| Direct-to-Chip Cooling | ||
| Rear-Door Heat Exchanger | ||
| By Type | Hyperscalers (owned & Leased) | |
| Enterprise (On-premise) | ||
| Colocation | ||
| By End user Vertical | IT & Telecom | |
| Retail & Consumer Goods | ||
| Healthcare | ||
| Media & Entertainment | ||
| Federal & Institutional agencies | ||
| Other end-users |
Israel Data Center Cooling Market Research FAQs
How big is the Israel Data Center Cooling Market?
The Israel Data Center Cooling Market size is expected to reach USD 0.03 billion in 2024 and grow at a CAGR of 15.40% to reach USD 0.08 billion by 2030.
What is the current Israel Data Center Cooling Market size?
In 2024, the Israel Data Center Cooling Market size is expected to reach USD 0.03 billion.
Who are the key players in Israel Data Center Cooling Market?
Stulz GmbH, Accelsius, Schneider Electric SE, Daikin Applied Israel and Mitsubishi Electric Corporation are the major companies operating in the Israel Data Center Cooling Market.
What years does this Israel Data Center Cooling Market cover, and what was the market size in 2023?
In 2023, the Israel Data Center Cooling Market size was estimated at USD 0.03 billion. The report covers the Israel Data Center Cooling Market historical market size for years: 2017, 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Israel Data Center Cooling Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Israel Data Center Cooling Industry Report
Statistics for the 2024 Israel Data Center Cooling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Israel Data Center Cooling analysis includes a market forecast outlook for 2024 to (2024to2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
