Data Centers in Israel

Israel – High-Performance Infrastructure for Global Scaling

Executive Summary

Israel serves as a critical digital bridge for enterprises requiring low-latency access to Mediterranean and Middle Eastern markets. Its massive concentration of cybersecurity and software expertise makes it a primary choice for organizations prioritizing data sovereignty and high-stakes compute performance.

Israel: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The market features over 6 carriers as of January 2026. While the provider count is growing, core hubs in Petah Tikva and Tel Aviv offer significant choice, ensuring resilient routing and competitive pricing for enterprise transit.

Direct Cloud On-Ramps: There are over 3 on-ramps providing access to 3 cloud regions as of January 2026. This infrastructure supports direct, private connections to AWS and Oracle Cloud, which is vital for managing latency and egress costs in production environments.

Internet Exchange Points (IXPs): The Israel Internet Exchange (IIX) serves as the primary peering hub. It facilitates efficient local traffic exchange, keeping domestic data within the region to improve speed and security.

Bare Metal: Dedicated, high-performance hardware is available through global providers such as Hivelocity. This provides a sturdy alternative for organizations with compute-heavy requirements that need to bypass the overhead of virtualization.

Power Analysis

Average Cost Of Power: Industrial electricity rates are approximately $0.13/kWh as of January 2026. This pricing provides a stable foundation for high-density deployments, especially for companies managing large-scale clusters with predictable operational budgets.

Power Grid Reliability: The national grid is well-engineered with multi-substation support feeding the primary data center corridors. Significant reliance on domestic natural gas generation ensures a consistent energy supply for mission-critical facilities that cannot afford downtime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are located near Silicon Wadi, the epicenter of the region’s cybersecurity, financial services, and software development sectors. This ensures minimal latency for the concentration of tech talent and enterprise headquarters in Tel Aviv and Herzliya.

Regional Market Reach: Israel serves as a vital bridge between Europe, Asia, and Africa. Its geographical position makes it an ideal landing point for transcontinental fiber, allowing businesses to reach a broad population across the Mediterranean basin.

Tax Advantage For Data Centers: Government policy allows for significant savings via import tax and VAT exemptions on incoming technical equipment. This lowers capital expenditure for teams scaling infrastructure within the region by providing relief on specialized server and networking hardware.

Natural Disaster Risk

Israel maintains a Moderate (3.2/10) risk profile as of January 2026. While the overall exposure is manageable, infrastructure is built to specific seismic and environmental standards to ensure service continuity.

• Earthquake (6.9): The primary natural concern; modern facilities utilize advanced seismic dampening and engineering standards to protect equipment.
• Drought (5.3): A notable environmental factor that leads many operators to prioritize water-efficient or closed-loop cooling systems.
• Epidemic (4.8): Managed through national health infrastructure and resilient site operational planning.
• Tsunami (2.7): Identified as an indirect regional risk for facilities located near the Mediterranean coastline; primary hubs are situated to mitigate this.

Other natural hazards are considered minor or not material to the data center sector in this region as of January 2026.