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Data Centers in Tel Aviv

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Tel Aviv – Your Gateway to the Middle East

Executive Summary

Tel Aviv is the undisputed digital capital of Israel and a primary technology hub for the wider Middle East. The market is built for businesses that require high-performance infrastructure with direct cloud access to serve a vibrant, tech-savvy local economy. Deploying in Tel Aviv ensures low-latency connectivity, essential for financial services, R&D, and SaaS platforms targeting the region.

Tel Aviv: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAExcellent fiber connectivity to major European hubs.
Direct Cloud On-RampsOver 2 — as of September 2025Direct access to major cloud providers is available locally.
Power Cost₪0.45 – ₪0.60/kWhA competitive rate for the region, based on a natural gas-heavy grid.
Disaster RiskModerate (3.2/10)Primarily driven by seismic risk; modern facilities are built to standard.
Tax IncentivesYesTemporary importation and VAT exemption routes exist for qualifying equipment.
Sales Tax18% VATStandard value-added tax rate, as of September 2025.

Network & Connectivity Ecosystem

Tel Aviv is Israel's center of gravity for network services, offering a dense and mature connectivity environment. Ten data centers support a competitive ecosystem, as of September 2025.

Carrier Density & Carrier Neutrality The market features a healthy mix of over 5 major international and national carriers, with many more local providers available. Carrier-neutral facilities provide the primary interconnection points, ensuring resilient and flexible network design options.

Direct Cloud On-Ramps Over 2 direct on-ramps provide dedicated connectivity to 2 cloud regions, as of September 2025. This allows for secure, high-throughput, and low-latency hybrid cloud architectures. Direct access includes AWS.

Internet Exchange Points (IXPs) The primary peering hub is the Israel Internet Exchange (IIX), located in Tel Aviv. The IIX facilitates the majority of domestic traffic exchange, keeping latency low for Israeli users and improving application performance.

Bare Metal Bare metal server options are readily available from multiple providers. Global suppliers like Hivelocity and phoenixNAP offer dedicated servers for workloads requiring maximum performance and security without a virtualization layer.

Power Analysis

Average Cost Of Power Industrial power rates in Tel Aviv typically range from ₪0.45 to ₪0.60 per kWh, as of September 2025. This pricing is competitive for the region and helps manage operational expenditures for high-density deployments. The grid is primarily powered by natural gas, with a growing share from renewable sources.

Power Grid Reliability The power grid serving Tel Aviv's main commercial and industrial zones is reliable and well-engineered. Data centers in the area are supported by redundant power feeds from multiple substations, and all modern facilities are equipped with enterprise-grade UPS and generator backup systems.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers in and around Tel Aviv are strategically located to serve Israel's "Silicon Wadi." They offer low-latency connectivity to the financial district on Rothschild Boulevard, the high-tech parks in Herzliya Pituach, and numerous R&D centers, which is critical for real-time applications and data processing.

Regional Market Reach Tel Aviv is the premier location for serving the entire Israeli market of over nine million people. It also acts as a strategic digital outpost for companies targeting consumers and businesses throughout the Eastern Mediterranean.

Tax Advantage For Data Centers Israel offers tax incentives that can significantly reduce capital expenditures. These programs include temporary importation and VAT exemptions for data center equipment, lowering the upfront cost of building out infrastructure.

Natural Disaster Risk

The overall natural disaster risk for Tel Aviv is Moderate (3.2/10), as of September 2025. While the overall risk level is manageable, site selection should account for specific regional hazards.

The primary natural hazards for the area are:

  • Earthquake: 6.9/10
  • Drought: 5.3/10
  • Tsunami: 2.7/10
  • Coastal Flood: 2.4/10
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