Data Centers in Modi'in
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Modi'in – Strategic Hub for Israel's Tech Corridor
Executive Summary
Modi'in is a prime market for enterprises and service providers that require resilient, low-latency infrastructure to serve Israel's domestic population. Its strategic location between Jerusalem and Tel Aviv provides a secure and modern alternative to more congested coastal hubs. This positioning ensures high availability and rapid access to the country's core economic centers.
Modi'in: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong national fiber, but relies on hubs for international subsea cable access. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access via dedicated connection to hubs like Tel Aviv. |
| Power Cost | ~$0.14 – $0.18 / kWh (est.), as of September 2025 | Based on a grid dominated by natural gas generation. |
| Disaster Risk | Moderate (3.2 / 10), as of September 2025 | Key risks are seismic activity and drought; low flood risk. |
| Tax Incentives | Yes | Temporary import and VAT exemptions are available for data center equipment. |
| Sales Tax | 18% VAT, as of September 2025 | Standard rate applied to goods and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Access to a growing number of national and regional carriers is available, as of September 2025. Facilities in the area generally offer carrier-neutral interconnection options.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Modi'in, as of September 2025. High-speed, private connectivity to cloud provider regions and availability zones in Tel Aviv is available through dedicated fiber links.
Internet Exchange Points (IXPs): Peering is primarily handled through the Israel Internet Exchange (IIX) located in Tel Aviv. This ensures efficient traffic exchange and low latency for domestic network routes.
Bare Metal: Bare metal server solutions are available from multiple providers. This includes deployments from international suppliers like Hivelocity, enabling custom, dedicated hardware environments.
Power Analysis
Average Cost Of Power: The estimated cost for industrial power is between $0.14 – $0.18 / kWh, as of September 2025. This pricing is competitive for the region, making power a predictable and manageable operational expense for high-density deployments. Israel's energy mix is approximately 70% natural gas, 18% coal, and 11% renewables, as of 2023.
Power Grid Reliability: The power grid supporting Modi'in is modern and well-engineered. Data centers in the market are typically supplied by redundant power feeds from separate substations to ensure high levels of uptime and meet industry standards.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Modi'in's central location between Jerusalem and Tel Aviv places it within a 30-minute drive of Israel's primary government, financial, and technology centers. This proximity allows businesses to serve both major metropolitan areas with minimal latency.
Regional Market Reach: The market effectively serves the majority of Israel's population and its dense economic corridor. It is an excellent location for disaster recovery and business continuity for companies with primary operations in Tel Aviv.
Tax Advantage For Data Centers: Israel offers tax programs that can benefit data center operators and their customers. These incentives include routes for temporary importation and exemptions from import taxes or VAT on critical equipment, which reduces the capital cost of deployments.
Natural Disaster Risk
The overall natural disaster risk for Modi'in is moderate, with a composite INFORM score of 3.2 out of 10, as of September 2025. While the general risk profile is manageable, data center planning should account for specific regional hazards.
The primary environmental risks for infrastructure are:
- Earthquake: The most significant risk, with a score of 6.9 out of 10.
- Drought: A moderate risk factor, scored at 5.3 out of 10.
Risks from river flooding, coastal flooding, and tropical cyclones are negligible for this inland location.
