Israel Data Center Market Size by Investment to Reach USD 795 Million by 2026 - Arizton
CHICAGO, Dec. 1, 2021 /PRNewswire/ -- In-depth analysis and data-driven insights on the impact of COVID-19 included in this Israel data center market report.
Israel data center market size is expected to grow at a CAGR of over 17% during the period 2020−2026. Israel data center market research report includes market size in terms of area, investment, power capacity, and colocation revenues. Get insights on 16 existing data centers and 7 upcoming facilities spread across 8 cities including Petah Tikva, Tel Aviv, and other cities.
Key Highlights Offered in the Report:
1. With an increasing number of companies moving from on-premises to cloud and colocation data centers, growth in cloud adoption, government initiatives such as the Nimbus Project, and increased connectivity with other countries, the Israel data center market is set to grow significantly in the next few years.
2. Major data center service providers in Israel include EdgeConneX (Global Data Center), Adgar, Bynet Data Communications, Bezeq International, and MedOne. Compass Data Centers, SDS, Serverfarm, Adgar, MedOne, Global Technical Realty (GTR), and Bynet Data Communications are investing in data centers expected to be operational between 2021 and 2024.
3. Tel Aviv is a major location chosen to develop data center facilities, owing to its strategic location as a major submarine cable landing station in the country. Other prominent locations include Petah Tikva, Raanana, and Modiin, among others.
4. The Israeli government has initiated The Nimbus Project, a multi-year project to address the creation of a channel for the provision of cloud services for the government, which will have a strong impact on the colocation market during the forecast period. Cloud providers AWS and Google have won the tender under the project.
5. Several acquisitions have also turned Israel into a dynamic market. In August 2021, EdgeConnex acquired Global Data Center (GDC), an Israel-based data center operator to expand its foothold in Israel. Azrieli Group, an Israel real estate firm is expanding its global presence by acquiring Green Mountain, a Norwegian data center company.
6. Israel is currently generating around 8% of its power needs from solar power and aims to generate around 20% of its renewable energy from solar power by 2025 and 30% in 2030.
Key Offerings:
- Market Size & Forecast by Area, Power Capacity, Investment, and Colocation Revenue | 2020-2026
- Impact of COVID-19 on Data Center Market
- Snapshot of existing and upcoming third-party data center facilities in Israel
- Facilities Covered (Existing): 16
- Facilities Identified (Upcoming): 7
- Coverage: 8 Cities
- Existing vs. Upcoming (Data Center Area)
- Existing vs. Upcoming (IT Load Capacity)
- Data center colocation market in Israel
- Market Revenue & Forecast (2021-2026)
- Retail Colocation Pricing
- Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
- Market Segmentation – A detailed analysis by IT infrastructure, electrical infrastructure, mechanical infrastructure, general construction, and tier standard
- Key Market Participants – List of 10 IT infrastructure providers, 3 construction service providers, 10 support infrastructure providers, and 9 data center investors
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Israel Data Center Market – Segmentation
- In Israel, the adoption of advanced technologies such as cloud, IoT, Big Data, and AI by enterprises will lead to higher adoption of high-performance computing infrastructure during the forecast period. The increase in investments in data centers and the entry of global cloud service providers in the country are likely to drive the IT infrastructure market.
- Most data center facilities in Israel, are adopting medium- to low-voltage switchgears as number of data center investments are slowly increasing. Increased awareness of switchgears in successfully rerouting the power in data center environment will increase the adoption of switchgears.
- In Israel, data centers will include both air and water-based cooling systems with N+1 redundancy. Most data center facilities are installing CRAC units and chiller units with a redundancy of N+1, whereas large facilities are being powered by water-based cooling techniques.
Market Segmentation by Infrastructure Type
- IT Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
Market Segmentation by IT Infrastructure
- Server
- Storage Systems
- Network Infrastructure
Market Segmentation by Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches and Switchgears
- PDUs
- Other Electrical Infrastructure
Market Segmentation by Mechanical Infrastructure
- Cooling Systems
- Rack Cabinets
- Other Mechanical Infrastructure
Market Segmentation by Cooling Systems
- CRAC & CRAH Units
- Chillers
- Cooling Towers, Condensers, and Dry Coolers
- Economizers & Evaporative Coolers
- Other Cooling Units
Market Segmentation by General Construction
- Building Development
- Installation and Commissioning Services
- Building & Engineering Design
- Physical Security
- Data Center Infrastructure Management (DCIM)
Market Segmentation by Tier Segments
- Tier I & Tier II
- Tier III
- Tier IV
Israel Data Center Market – Dynamics
According to the Institute for Management Development, Tel Aviv ranks 50 in the Smart City Index for 2020 out 109 smart cities. In Israel, the implementation of smart city initiatives is increasing across the country in cities, such as Tel Aviv (with an initiative AutoTel), Modiin, and Jerusalem. According to Start-Up Nation Finder, there are around 250 smart city companies operating in Israel. Some of them are ZenCity (uses AI to analyze data), ACiiST (network solution for smart cities), Mobility Insight (traffic management technology), GreenQ (optimizing and monitoring of waste collection), and Scanovate (identity management solution). In November 2020, Tel Aviv's Zencity, a smart city startup, won the Smart City Expo World Congress (SCEWC) 2020 Award for innovative projects, ideas, and strategies that make cities more livable, sustainable, and economically viable. Bezeq, one the largest telecom operators in Israel, is involved in the development of solutions for smart city technology such as the use of internet to operate street lighting and pollution regulation.
Key Drivers and Trends fueling Market Growth:
- 5G Network Groundwork in Israel
- Impact of COVID-19 on Israel Data Centers
- Big Data and IoT Drive Data Center Investments
- Cloud Adoption is driving Data Center Demand
Israel Data Center Market - Existing Vs. Upcoming Data Centers
Existing Facilities in the region (Area and Power Capacity)
- Petah Tikva
- Tel Aviv
- Other Cities
List of Upcoming Facilities in the region (Area and Power Capacity)
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Key Market Participants
IT Infrastructure Providers
- Broadcom
- CISCO Systems
- DELL Technologies
- Fujitsu
- Hitachi Vantara
- Hewlett Packard Enterprise
- IBM
- JUNIPER NETWORKS
- Netapp
- Oracle
Construction Constructors & Sub-Contractors
- Exyte (M+W)
- Mercury Engineering
- Saan Zahav
Support Infrastructure Providers
- ABB
- CATERPILLAR
- Delta Electronics
- EATON
- Mitsubishi Electric Corporation
- Rittal
- Rolls-Royce Power Systems
- Schneider Electric
- STULZ
- Vertiv Group
Data Center Investors
- Amazon Web Services
- Adgar Data Center
- Bynet Data Communications
- Global Technical Realty (GTR)
- Edgeconnex
- Medone
- Serverfarm
- Microsoft
Explore our data center knowledge base profile to know more about the industry.
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About Arizton:
Arizton Advisory and Intelligence is an innovation and quality-driven firm, which offers cutting-edge research solutions to clients across the world. We excel in providing comprehensive market intelligence reports and advisory and consulting services.
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