According to Arizton research, the Israel data center colocation market size was valued at USD 256 million in 2024 and is expected to reach USD 816 million by 2030, growing at a CAGR of 21.31% during the forecast period.
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Report Summary:
MARKET SIZE – COLOCATION REVENUE: USD 816 Million (2030)
CAGR – COLOCATION REVENUE: 21.31% (2024-2030)
MARKET SIZE – UTILIZED WHITE FLOOR AREA: 2.67 million sq. feet (2030)
MARKET SIZE – UTILIZED RACKS: 55.75 thousand units (2030)
MARKET SIZE – UTILIZED IT POWER CAPACITY: 610 MW (2030)
BASE YEAR: 2024
FORECAST YEAR: 2025-2030
Israel Emerges as a High-Growth Hub in the Data Center Colocation Market
Israel is emerging as a key hub for data center colocation, driven by rapid cloud adoption and growing hyperscale demand. A clear shift is underway from retail-dominated colocation toward wholesale facilities, highlighting the country’s evolving digital infrastructure landscape.
Tel Aviv and Petah Tikva continue to anchor major investments, while cities like Jerusalem, Rosh Haayin, Tirat Carmel, and Raanana are gaining traction as emerging data center destinations. This growth is underpinned by Israel’s expanding cloud ecosystem, bolstered by government initiatives, private sector interest, and international partnerships, such as Salesforce’s Hyperforce platform that ensures sensitive data remains local.
Leading operators including SDS Data Center, MedOne, EdgeConneX, Bynet, and Bezeq International dominate the market, with SDS Data Center commanding a 37% share through high-density, energy-efficient infrastructure. Meanwhile, new entrants like Anan, Mega Data Centers, NED, and Techtonic are set to intensify competition and accelerate market expansion.
Why Israel is Attracting Global Colocation Investments
Solar Sparks Sustainability: Leading the Charge to a Carbon-Free Future
Israel is making significant shift toward building sustainable and energy-efficient data centers by adopting advanced designs, renewable energy sources, and innovative cooling technologies. These efforts align with the country’s vision to reduce carbon emissions and strengthen digital infrastructure for a cleaner, greener future. With a bold target to achieve zero carbon emissions by 2050, initiatives like Zero Hour, the Israel Net Zero Platform, are setting measurable goals to cut greenhouse gas emissions and support a total energy reset. Solar energy leads the renewable mix, accounting for 93% of the country’s capacity, while wind and bioenergy make up the remainder, reinforcing Israel’s strategic focus on solar as the primary driver of its green energy transition.
The Future of AI and Big Data Powered by Israel’s IoT-Enabled Data Center Revolution
Israel’s strategic focus on Internet of Things (IoT) integration is driving a new era of data center innovation. The convergence of IoT with edge computing, real-time data analytics, and advanced cybersecurity frameworks is enhancing the efficiency, scalability, and reliability of data infrastructure. Government-backed initiatives, including the development of the Nebius supercomputer, are expanding the country’s capabilities in AI and big data processing, reinforcing its leadership in next-generation technologies. With the increasing adoption of high-performance servers and energy-optimized designs, Israel’s data centers are positioned to support complex digital ecosystems, enabling enterprises to harness data-driven insights while ensuring security and operational resilience.
Explore key insights and investment opportunities in Israel data center colocation market: https://www.arizton.com/market-reports/israel-data-center-colocation-market
Vendor Landscape
Existing Colocation Operators
New Operators
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