Israel Data Center Market Size
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 174.8 MW |
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Market Volume (2029) | 277.2 MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 9.66 % |
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Fastest Growing by Tier Type | Tier 3 |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Israel Data Center Market Analysis
The Israel Data Center Market size is estimated at 174.8 MW in 2024, and is expected to reach 277.2 MW by 2029, growing at a CAGR of 9.66%. Further, the market is expected to generate colocation revenue of USD 573.1 Million in 2024 and is projected to reach USD 919.2 Million by 2029, growing at a CAGR of 9.91% during the forecast period (2024-2029).
USD 573.10 Million
Market Size in 2024
USD 919.2 Million
Market Size in 2029
9.3%
CAGR (2017-2023)
9.9%
CAGR (2024-2029)
IT Load Capacity
174.8 MW
Value, IT Load Capacity, 2024
The IT load capacity of the data center market will have steady growth and is expected to reach 277.2 MW by 2029. The construction of new large-size data center facilities underway in Tel Aviv would increase IT load capacity.
Total Raised Floor Space
Sq. Ft. 0.62 M
Volume, Raised Floor Space, 2024
The total raised floor area of the country is expected to increase to 0.9 million sq. ft by 2029. Due to technological advancement and ever-growing data transfer in the future, massive size facilities may rise.
Installed Racks
31,363
Volume, Installed Racks, 2024
The number of installed racks is expected to reach 49,737 units by 2029. With the increasing presence of global conglomerates, the ecosystem for hyperscale facilities is growing.
# of DC Operators & DC Facilities
11 and 25
Volume, DC Facilities, 2024
There are 25 colocation data center facilities in Israel. The region has a cable landing station for multiple major fiber cables in Israel, with technological accessibility and the availability of a commercial 5G network.
Leading Market Player
40.2%
Market Share, Med 1 I.C.-1 (1999) Ltd., 2023
MedOne (Med1 I.C.-1 (1999) Ltd) was the leading player in the Israeli market in the historical period and rolled out four data center facilities with a capacity of 64 MW.
Tier 3 data centers accounts for majority market share in 2023, and expected to maintain dominace during forecasted period
- Tier 3 data center facilities accounted for an IT load capacity of 62.39 MW in 2022, which is projected to exhibit a CAGR of 2.25% to reach 72.89 MW in 2029.
- The increasing demand for higher redundancy rates is pushing colocation service providers to introduce more Tier 3 and Tier 4 facilities. The IT load capacity contributed by the existing and upcoming Tier 4 data center colocation facilities in Israel would account for about 66.98 MW by 2029, which would considerably support the overall market growth.
- The market would witness many cloud aggregators paying attention to the rising demand by Israeli users focusing on lesser latency and faster data transfer rates for highly responsive deployment of their software and cloud-based products.
- Tier 1 and 2 facilities were not observed in the region, as the market grows in an already developed global portfolio of data centers and fiber connectivity, highlighting how the adequate number of Tier 3 facilities is supporting the growing demand for facilitating modern technologies in Israel. The Tier 3 facilities, coupled with their associated operations and customers, would also create strong grounds for more Tier 4 facilities to surface in Israel during the forecast period.
- Several end-user service providers, including telecommunication service providers such as Bezeq International, utilize the capabilities of Tier 3 centers to cope with the rising data traffic and networking needs in Israel.
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Israel Data Center Market Trends
Growing number of smartphone users, digitalization of different services, and increasing digital payments across the country boosts the market growth
- The total data traffic per smartphone was 5.2 GB in 2022. It is expected to reach 32 GB in 2029, registering a CAGR of 29.64% during the forecast period.
- Several end users witnessed an increase in mobile phones, which contributed to data traffic. For instance, the BFSI sector observed companies like Apple Pay and Google Pay entering the market in 2021. About two-thirds of Israel's terminals are capable of accepting wireless payments through such modes.
- The growth can be observed through the significant subscriber penetration of 74% in 2021, which is expected to reach 78% by 2025. This indicates the user inclination and network density in Israel.
- Similarly, the digitalization of different services would generate increased demands for data processing as data traffic increases. The e-commerce sector accounts for a penetration rate of 47% in Israel, which is expected to grow by 25% by 2025.
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Increasing number of digital consumers boost the data center demand in country
- The total number of smartphone users was 7.1 million in 2022.
- It is expected to reach 8.4 million by 2029, registering a CAGR of 2.31% during the forecast period.
- About 71% of the Israeli population had mobile internet subscriptions in 2021. However, 28% did not use it, and 1% did not have access to a subscription.
- Smartphone usage in Israel was evident, with a prominent smartphone adoption rate of 84% in 2021, compared to a projected rate of 87% by 2025. This signifies growth potential, requiring an efficient network to facilitate device and service adoption.
- With a strong number of 455 million mobile subscribers expected in 2025 in Israel, the number of smartphone users would force telecom service providers to opt for better and faster data center facilities to cope with the increasing performance demand in Israel.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The increasing investments for the expansion of 5G network by Operators drives the growth of the market
- The increasing investments in fiber infrastructre improvements across the nation drives the market growth
- The increasing fiber infrastructre across the country drives the market growth
Israel Data Center Industry Overview
The Israel Data Center Market is fragmented, with the top five companies occupying 37.68%. The major players in this market are Adgar Investments and Development Ltd (Adgar Data Center), Bezeq International General Partner Ltd, EdgeConneX Inc., Lian Group and ServerFarm LLC (sorted alphabetically).
Israel Data Center Market Leaders
Adgar Investments and Development Ltd (Adgar Data Center)
Bezeq International General Partner Ltd
EdgeConneX Inc.
Lian Group
ServerFarm LLC
Other important companies include 3SAMNET, Bynet Data Communications Ltd, Global Technical Realty (GTR), Global Technical Realty SARL, HQserv, Med 1 IC-1 (1999) Ltd.
*Disclaimer: Major Players sorted in alphabetical order.
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Israel Data Center Market News
- July 2022: Berkshire Partners announced to pay more than USD 215 million to acquire 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.
- August 2020: Bynet Data Communications was building an underground data center for Oracle Corporation in Jerusalem, Israel. The facility was a 14,000 sq m (460,000 sq ft) bunker located below five parking levels and a 17-story building in the city’s Har Hotzvim tech hub. The data center would extend over four floors at 50 meters (160 feet) below ground level.
Free with this Report
We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.
Israel Data Center Market Report - Table of Contents
1. EXECUTIVE SUMMARY & KEY FINDINGS
2. REPORT OFFERS
3. INTRODUCTION
- 3.1 Study Assumptions & Market Definition
- 3.2 Scope of the Study
- 3.3 Research Methodology
4. MARKET OUTLOOK
- 4.1 It Load Capacity
- 4.2 Raised Floor Space
- 4.3 Colocation Revenue
- 4.4 Installed Racks
- 4.5 Rack Space Utilization
- 4.6 Submarine Cable
5. Key Industry Trends
- 5.1 Smartphone Users
- 5.2 Data Traffic Per Smartphone
- 5.3 Mobile Data Speed
- 5.4 Broadband Data Speed
- 5.5 Fiber Connectivity Network
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5.6 Regulatory Framework
- 5.6.1 Israel
- 5.7 Value Chain & Distribution Channel Analysis
6. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
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6.1 Hotspot
- 6.1.1 Tel Aviv
- 6.1.2 Rest of Isreal
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6.2 Data Center Size
- 6.2.1 Large
- 6.2.2 Massive
- 6.2.3 Medium
- 6.2.4 Mega
- 6.2.5 Small
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6.3 Tier Type
- 6.3.1 Tier 1 and 2
- 6.3.2 Tier 3
- 6.3.3 Tier 4
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6.4 Absorption
- 6.4.1 Non-Utilized
- 6.4.2 Utilized
- 6.4.2.1 By Colocation Type
- 6.4.2.1.1 Hyperscale
- 6.4.2.1.2 Retail
- 6.4.2.1.3 Wholesale
- 6.4.2.2 By End User
- 6.4.2.2.1 BFSI
- 6.4.2.2.2 Cloud
- 6.4.2.2.3 E-Commerce
- 6.4.2.2.4 Government
- 6.4.2.2.5 Manufacturing
- 6.4.2.2.6 Media & Entertainment
- 6.4.2.2.7 Telecom
- 6.4.2.2.8 Other End User
7. COMPETITIVE LANDSCAPE
- 7.1 Market Share Analysis
- 7.2 Company Landscape
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7.3 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
- 7.3.1 3SAMNET
- 7.3.2 Adgar Investments and Development Ltd (Adgar Data Center)
- 7.3.3 Bezeq International General Partner Ltd
- 7.3.4 Bynet Data Communications Ltd
- 7.3.5 EdgeConneX Inc.
- 7.3.6 Global Technical Realty (GTR)
- 7.3.7 Global Technical Realty SARL
- 7.3.8 HQserv
- 7.3.9 Lian Group
- 7.3.10 Med 1 IC-1 (1999) Ltd
- 7.3.11 ServerFarm LLC
- 7.4 LIST OF COMPANIES STUDIED
8. KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS
9. APPENDIX
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9.1 Global Overview
- 9.1.1 Overview
- 9.1.2 Porter’s Five Forces Framework
- 9.1.3 Global Value Chain Analysis
- 9.1.4 Global Market Size and DROs
- 9.2 Sources & References
- 9.3 List of Tables & Figures
- 9.4 Primary Insights
- 9.5 Data Pack
- 9.6 Glossary of Terms
List of Tables & Figures
- Figure 1:
- VOLUME OF IT LOAD CAPACITY, MW, ISRAEL, 2017 - 2029
- Figure 2:
- VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), ISRAEL, 2017 - 2029
- Figure 3:
- VALUE OF COLOCATION REVENUE, USD MILLION, ISRAEL, 2017 - 2029
- Figure 4:
- VOLUME OF INSTALLED RACKS, NUMBER, ISRAEL, 2017 - 2029
- Figure 5:
- RACK SPACE UTILIZATION, %, ISRAEL, 2017 - 2029
- Figure 6:
- COUNT OF SMARTPHONE USERS, IN MILLION, ISRAEL, 2017 - 2029
- Figure 7:
- DATA TRAFFIC PER SMARTPHONE, GB, ISRAEL, 2017 - 2029
- Figure 8:
- AVERAGE MOBILE DATA SPEED, MBPS, ISRAEL, 2017 - 2029
- Figure 9:
- AVERAGE BROADBAND SPEED, MBPS, ISRAEL, 2017 - 2029
- Figure 10:
- LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, ISRAEL, 2017 - 2029
- Figure 11:
- VOLUME OF IT LOAD CAPACITY, MW, ISRAEL, 2017 - 2029
- Figure 12:
- VOLUME OF HOTSPOT, MW, ISRAEL, 2017 - 2029
- Figure 13:
- VOLUME SHARE OF HOTSPOT, %, ISRAEL, 2017 - 2029
- Figure 14:
- VOLUME SIZE OF TEL AVIV, MW, ISRAEL, 2017 - 2029
- Figure 15:
- VOLUME SHARE OF TEL AVIV, MW, HOTSPOT, %, ISRAEL, 2017 - 2029
- Figure 16:
- VOLUME SIZE OF REST OF ISREAL, MW, ISRAEL, 2017 - 2029
- Figure 17:
- VOLUME SHARE OF REST OF ISREAL, MW, HOTSPOT, %, ISRAEL, 2017 - 2029
- Figure 18:
- VOLUME OF DATA CENTER SIZE, MW, ISRAEL, 2017 - 2029
- Figure 19:
- VOLUME SHARE OF DATA CENTER SIZE, %, ISRAEL, 2017 - 2029
- Figure 20:
- VOLUME SIZE OF LARGE, MW, ISRAEL, 2017 - 2029
- Figure 21:
- VOLUME SIZE OF MASSIVE, MW, ISRAEL, 2017 - 2029
- Figure 22:
- VOLUME SIZE OF MEDIUM, MW, ISRAEL, 2017 - 2029
- Figure 23:
- VOLUME SIZE OF MEGA, MW, ISRAEL, 2017 - 2029
- Figure 24:
- VOLUME SIZE OF SMALL, MW, ISRAEL, 2017 - 2029
- Figure 25:
- VOLUME OF TIER TYPE, MW, ISRAEL, 2017 - 2029
- Figure 26:
- VOLUME SHARE OF TIER TYPE, %, ISRAEL, 2017 - 2029
- Figure 27:
- VOLUME SIZE OF TIER 1 AND 2, MW, ISRAEL, 2017 - 2029
- Figure 28:
- VOLUME SIZE OF TIER 3, MW, ISRAEL, 2017 - 2029
- Figure 29:
- VOLUME SIZE OF TIER 4, MW, ISRAEL, 2017 - 2029
- Figure 30:
- VOLUME OF ABSORPTION, MW, ISRAEL, 2017 - 2029
- Figure 31:
- VOLUME SHARE OF ABSORPTION, %, ISRAEL, 2017 - 2029
- Figure 32:
- VOLUME SIZE OF NON-UTILIZED, MW, ISRAEL, 2017 - 2029
- Figure 33:
- VOLUME OF COLOCATION TYPE, MW, ISRAEL, 2017 - 2029
- Figure 34:
- VOLUME SHARE OF COLOCATION TYPE, %, ISRAEL, 2017 - 2029
- Figure 35:
- VOLUME SIZE OF HYPERSCALE, MW, ISRAEL, 2017 - 2029
- Figure 36:
- VOLUME SIZE OF RETAIL, MW, ISRAEL, 2017 - 2029
- Figure 37:
- VOLUME SIZE OF WHOLESALE, MW, ISRAEL, 2017 - 2029
- Figure 38:
- VOLUME OF END USER, MW, ISRAEL, 2017 - 2029
- Figure 39:
- VOLUME SHARE OF END USER, %, ISRAEL, 2017 - 2029
- Figure 40:
- VOLUME SIZE OF BFSI, MW, ISRAEL, 2017 - 2029
- Figure 41:
- VOLUME SIZE OF CLOUD, MW, ISRAEL, 2017 - 2029
- Figure 42:
- VOLUME SIZE OF E-COMMERCE, MW, ISRAEL, 2017 - 2029
- Figure 43:
- VOLUME SIZE OF GOVERNMENT, MW, ISRAEL, 2017 - 2029
- Figure 44:
- VOLUME SIZE OF MANUFACTURING, MW, ISRAEL, 2017 - 2029
- Figure 45:
- VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, ISRAEL, 2017 - 2029
- Figure 46:
- VOLUME SIZE OF TELECOM, MW, ISRAEL, 2017 - 2029
- Figure 47:
- VOLUME SIZE OF OTHER END USER, MW, ISRAEL, 2017 - 2029
- Figure 48:
- VOLUME SHARE OF MAJOR PLAYERS, %, ISRAEL, 2022
Israel Data Center Industry Segmentation
Tel Aviv are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.
- Tier 3 data center facilities accounted for an IT load capacity of 62.39 MW in 2022, which is projected to exhibit a CAGR of 2.25% to reach 72.89 MW in 2029.
- The increasing demand for higher redundancy rates is pushing colocation service providers to introduce more Tier 3 and Tier 4 facilities. The IT load capacity contributed by the existing and upcoming Tier 4 data center colocation facilities in Israel would account for about 66.98 MW by 2029, which would considerably support the overall market growth.
- The market would witness many cloud aggregators paying attention to the rising demand by Israeli users focusing on lesser latency and faster data transfer rates for highly responsive deployment of their software and cloud-based products.
- Tier 1 and 2 facilities were not observed in the region, as the market grows in an already developed global portfolio of data centers and fiber connectivity, highlighting how the adequate number of Tier 3 facilities is supporting the growing demand for facilitating modern technologies in Israel. The Tier 3 facilities, coupled with their associated operations and customers, would also create strong grounds for more Tier 4 facilities to surface in Israel during the forecast period.
- Several end-user service providers, including telecommunication service providers such as Bezeq International, utilize the capabilities of Tier 3 centers to cope with the rising data traffic and networking needs in Israel.
| Hotspot | Tel Aviv | ||
| Rest of Isreal | |||
| Data Center Size | Large | ||
| Massive | |||
| Medium | |||
| Mega | |||
| Small | |||
| Tier Type | Tier 1 and 2 | ||
| Tier 3 | |||
| Tier 4 | |||
| Absorption | Non-Utilized | ||
| Utilized | By Colocation Type | Hyperscale | |
| Retail | |||
| Wholesale | |||
| Utilized | By End User | BFSI | |
| Cloud | |||
| E-Commerce | |||
| Government | |||
| Manufacturing | |||
| Media & Entertainment | |||
| Telecom | |||
| Other End User |
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Market Definition
- IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
- ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
- RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
- DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
- TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
- COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
- END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
| Keyword | Definition |
|---|---|
| Rack Unit | Generally referred as U or RU, it is the unit of measurement for the server unit housed in the racks in the data center. 1U is equal to 1.75 inches. |
| Rack Density | It defines the amount of power consumed by the equipment and server housed in a rack. It is measured in kilowatt (kW). This factor plays a critical role in data center design and, cooling and power planning. |
| IT Load Capacity | The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipment placed in a rack installed. It is measured in megawatt (MW). |
| Absorption Rate | It denotes how much of the data center capacity has been leased out. For instance, if a 100 MW DC has leased out 75 MW, then the absorption rate would be 75%. It is also referred to as utilization rate and leased-out capacity. |
| Raised Floor Space | It is an elevated space built over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assists in having proper wiring and cooling infrastructure. It is measured in square feet/meter. |
| Computer Room Air Conditioner (CRAC) | It is a device used to monitor and maintain the temperature, air circulation, and humidity inside the server room in the data center. |
| Aisle | It is the open space between the rows of racks. This open space is critical for maintaining the optimal temperature (20-25 °C) in the server room. There are primarily two aisles inside the server room, a hot aisle and a cold aisle. |
| Cold Aisle | It is the aisle wherein the front of the rack faces the aisle. Here, chilled air is directed into the aisle so that it can enter the front of the racks and maintain the temperature. |
| Hot Aisle | It is the aisle where the back of the racks faces the aisle. Here, the heat dissipated from the equipment’s in the rack is directed to the outlet vent of the CRAC. |
| Critical Load | It includes the servers and other computer equipment whose uptime is critical for data center operation. |
| Power Usage Effectiveness (PUE) | It is a metric which defines the efficiency of a data center. It is calculated by: (𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑡𝑎 𝐶𝑒𝑛𝑡𝑒𝑟 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)/(𝑇𝑜𝑡𝑎𝑙 𝐼𝑇 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛). Further, a data center with a PUE of 1.2-1.5 is considered highly efficient, whereas, a data center with a PUE >2 is considered highly inefficient. |
| Redundancy | It is defined as a system design wherein additional component (UPS, generators, CRAC) is added so that in case of power outage, equipment failure, the IT equipment should not be affected. |
| Uninterruptible Power Supply (UPS) | It is a device that is connected in series with the utility power supply, storing energy in batteries such that the supply from UPS is continuous to IT equipment even during utility power is snapped. The UPS primarily supports the IT equipment only. |
| Generators | Just like UPS, generators are placed in the data center to ensure an uninterrupted power supply, avoiding downtime. Data center facilities have diesel generators and commonly, 48-hour diesel is stored in the facility to prevent disruption. |
| N | It denotes the tools and equipment required for a data center to function at full load. Only "N" indicates that there is no backup to the equipment in the event of any failure. |
| N+1 | Referred to as 'Need plus one', it denotes the additional equipment setup available to avoid downtime in case of failure. A data center is considered N+1 when there is one additional unit for every 4 components. For instance, if a data center has 4 UPS systems, then for to achieve N+1, an additional UPS system would be required. |
| 2N | It refers to fully redundant design wherein two independent power distribution system is deployed. Therefore, in the event of a complete failure of one distribution system, the other system will still supply power to the data center. |
| In-Row Cooling | It is the cooling design system installed between racks in a row where it draws warm air from the hot aisle and supplies cool air to the cold aisle, thereby maintaining the temperature. |
| Tier 1 | Tier classification determines the preparedness of a data center facility to sustain data center operation. A data center is classified as Tier 1 data center when it has a non-redundant (N) power component (UPS, generators), cooling components, and power distribution system (from utility power grids). The Tier 1 data center has an uptime of 99.67% and an annual downtime of <28.8 hours. |
| Tier 2 | A data center is classified as Tier 2 data center when it has a redundant power and cooling components (N+1) and a single non-redundant distribution system. Redundant components include extra generators, UPS, chillers, heat rejection equipment, and fuel tanks. The Tier 2 data center has an uptime of 99.74% and an annual downtime of <22 hours. |
| Tier 3 | A data center having redundant power and cooling components and multiple power distribution systems is referred to as a Tier 3 data center. The facility is resistant to planned (facility maintenance) and unplanned (power outage, cooling failure) disruption. The Tier 3 data center has an uptime of 99.98% and an annual downtime of <1.6 hours. |
| Tier 4 | It is the most tolerant type of data center. A Tier 4 data center has multiple, independent redundant power and cooling components and multiple power distribution paths. All IT equipment are dual powered, making them fault tolerant in case of any disruption, thereby ensuring interrupted operation. The Tier 4 data center has an uptime of 99.74% and an annual downtime of <26.3 minutes. |
| Small Data Center | Data center that has floor space area of ≤ 5,000 Sq. ft or the number of racks that can be installed is ≤ 200 is classified as a small data center. |
| Medium Data Center | Data center which has floor space area between 5,001-20,000 Sq. ft, or the number of racks that can be installed is between 201-800, is classified as a medium data center. |
| Large Data Center | Data center which has floor space area between 20,001-75,000 Sq. ft, or the number of racks that can be installed is between 801-3,000, is classified as a large data center. |
| Massive Data Center | Data center which has floor space area between 75,001-225,000 Sq. ft, or the number of racks that can be installed is between 3001-9,000, is classified as a massive data center. |
| Mega Data Center | Data center that has a floor space area of ≥ 225,001 Sq. ft or the number of racks that can be installed is ≥ 9001 is classified as a mega data center. |
| Retail Colocation | It refers to those customers who have a capacity requirement of 250 kW or less. These services are majorly opted by small and medium enterprises (SMEs). |
| Wholesale Colocation | It refers to those customers who have a capacity requirement between 250 kW to 4 MW. These services are majorly opted by medium to large enterprises. |
| Hyperscale Colocation | It refers to those customers who have a capacity requirement greater than 4 MW. The hyperscale demand primarily originates from large-scale cloud players, IT companies, BFSI, and OTT players (like Netflix, Hulu, and HBO+). |
| Mobile Data Speed | It is the mobile internet speed a user experiences via their smartphones. This speed is primarily dependent on the carrier technology being used in the smartphone. The carrier technologies available in the market are 2G, 3G, 4G, and 5G, where 2G provides the slowest speed while 5G is the fastest. |
| Fiber Connectivity Network | It is a network of optical fiber cables deployed across the country, connecting rural and urban regions with high-speed internet connection. It is measured in kilometer (km). |
| Data Traffic per Smartphone | It is a measure of average data consumption by a smartphone user in a month. It is measured in gigabyte (GB). |
| Broadband Data Speed | It is the internet speed that is supplied over the fixed cable connection. Commonly, copper cable and optic fiber cable are used in both residential and commercial use. Here, optic cable fiber provides faster internet speed than copper cable. |
| Submarine Cable | A submarine cable is a fiber optic cable laid down at two or more landing points. Through this cable, communication and internet connectivity between countries across the globe is established. These cables can transmit 100-200 terabits per second (Tbps) from one point to another. |
| Carbon Footprint | It is the measure of carbon dioxide generated during the regular operation of a data center. Since, coal, and oil & gas are the primary source of power generation, consumption of this power contributes to carbon emissions. Data center operators are incorporating renewable energy sources to curb the carbon footprint emerging in their facilities. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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