Data Centers in Israel
13 locations found
- BI
Bezeq International Petah Tikva 2
40 Hashacham street, Petah Tikva
- MI
MedOne MED1
94 Ze'ev Jabotinsky Road, Petah Tikva
- BI
Bezeq International Petah Tikva 1
12 Bareket Street, Petah Tikva
- BI
Bezeq International Shacham
40 Shacham Street, Petah Tikva
- BI
Bezeq International Sivim
6 Nevatim Street, Petah Tikva
- HC
HQserv Communication Solutions Rosh HaaYin
15 HaMelacha Street, Rosh Haayin
- IN
Interhost Networks Rosh Haayin
15 HaMelacha Street, Rosh Haayin
- IB
INTERNET BINAT Tel Aviv
27 HaBarzel Street, Tel Aviv
- E
EdgeConneX EDCTLV01
10 Ha-Sadna'ot Street, Herzliya
- BI
Bezeq International TLV
7 HaYated Street, Tel Aviv
- SE
Shonfeld Engineering Modi'in-Maccabim-Re'ut
Tsela ha-Har St 38, Modiin-Maccabim-Reut
- B
Bynet Jerusalem
19 Hartom Street, West Jerusalem
- MI
MedOne Tirat-Carmel
4 Carmelim Street, Tirat Karmel
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Explore Markets in Israel
Israel – Cloud Hub for the Eastern Mediterranean
Executive Summary
Israel is a prime market for hyperscale cloud providers and global technology companies requiring low-latency access to the Eastern Mediterranean. Its growing ecosystem of carrier-neutral data centers and direct cloud on-ramps ensures high-performance connectivity, critical for securing regional market share and deploying resilient applications. This strategic position makes it an essential digital bridge connecting Europe, Asia, and Africa.
Israel: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid international connectivity with room for ecosystem growth. |
| Direct Cloud On-Ramps | Over 3 – as of September 2025 | Direct access to major clouds including AWS and Oracle. |
| Power Cost | ₪0.40 – ₪0.55/kWh (as of September 2025) | Competitive rates, supported by a natural gas-heavy grid. |
| Disaster Risk | Moderate (3.2/10) – as of September 2025 | Primary risks are seismic activity and drought; coastal risks are localized. |
| Tax Incentives | Yes | Temporary import and VAT exemptions available for data center equipment. |
| Sales Tax | 18% VAT – as of September 2025 | Standard Value Added Tax applies to most goods and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality
Israel's key data centers provide access to over 6 network service providers, as of September 2025. This carrier-neutral environment fosters competition and offers enterprises flexible, resilient connectivity options for local and international traffic.
Direct Cloud On-Ramps
Israel provides over 3 direct cloud on-ramps connecting to 3 distinct availability regions, as of September 2025. This enables low-latency, private connections to major cloud platforms including AWS and Oracle, bypassing the public internet for better performance and security.
Internet Exchange Points (IXPs)
The Israel Internet Exchange (IIX) is the primary hub for domestic peering, reducing latency and transit costs for traffic kept within the country's borders. Most interconnection occurs through private peering within data centers or via the national IXP.
Bare Metal
Bare metal server options are available from multiple providers, offering dedicated compute for performance-sensitive workloads. Global providers like Hivelocity and phoenixNAP serve the region, providing an alternative to virtualized cloud instances.
Power Analysis
Average Cost Of Power
Industrial power costs are estimated between ₪0.40 – ₪0.55/kWh, as of September 2025. These predictable energy costs are essential for managing budgets for high-density compute and mission-critical infrastructure.
Power Grid Reliability
The national power grid is reliable, with data centers in major tech parks benefiting from redundant power feeds and multi-substation support. The grid's heavy reliance on natural gas (~70% as of 2023) provides a stable generation base for critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts
Data centers are strategically located near major technology hubs like Tel Aviv, providing low-latency connections to a dense ecosystem of startups, R&D centers, and enterprise headquarters. This proximity is critical for financial services, ad-tech, and cloud gaming applications.
Regional Market Reach
Israel serves as an effective digital hub for the Eastern Mediterranean and the broader Middle East. It offers a secure and well-connected base for serving regional customers while maintaining strong network links to European data hubs.
Tax Advantage For Data Centers
The primary tax benefit involves temporary importation and VAT exemption routes for data center equipment. This significantly reduces the initial capital expenditure required for deploying hardware by deferring or eliminating import duties.
Natural Disaster Risk
Israel has a Moderate disaster risk profile, with an overall INFORM Risk score of 3.2 out of 10, as of September 2025. The primary natural hazards to consider are seismic activity and drought, reflecting the country's geographic and climatic realities. Data center site selection and construction must account for these factors.
Key risks include:
- Earthquake: 6.9/10
- Drought: 5.3/10
- Tsunami: 2.7/10
- Coastal Flood: 2.4/10
Operators should ensure facilities are built to modern seismic codes. Flood and tsunami risks are confined to specific coastal areas and are typically mitigated through careful site selection.
