Data Centers in Tel Aviv

Tel Aviv – High-Performance Hub for Global Connectivity

Executive Summary

Tel Aviv serves as the primary engine for the Silicon Wadi tech corridor, providing the technical density and resilient infrastructure needed for high-stakes digital operations. For global enterprises, it acts as a critical low-latency hub linking Mediterranean subsea systems to European and Middle Eastern markets, ensuring rapid data delivery and secure scaling.

Tel Aviv: At A Glance

Network & Connectivity Ecosystem

Tel Aviv functions as a mature digital crossroads, providing the density for high-performance peering and local distribution.

Carrier Density & Carrier Neutrality: Carrier count: over 25 as of September 2025. Most major facilities operate with carrier-neutral policies, allowing for flexible interconnection and diverse pathing across competing networks.

Direct Cloud On-Ramps: Over 2, enabling access to 2 cloud regions as of September 2025. This includes a direct presence for AWS, facilitating hybrid architectures without the latency penalties of backhauling traffic to Europe.

Internet Exchange Points (IXPs): The Israeli Internet Exchange (IIX) serves as the central hub for local traffic, keeping data within national borders to reduce hop counts and improve user experience as of September 2025.

Bare Metal: High-performance compute is available for rapid deployment through global providers such as Hivelocity and Latitude.sh as of September 2025.

Power Analysis

The local energy market is characterized by increasing independence and infrastructure modernization.

Average Cost Of Power: Industrial electricity is estimated at ₪0.55/kWh as of September 2025. This pricing remains predictable because the energy mix relies heavily on domestic natural gas, which helps stabilize costs against global volatility.

Power Grid Reliability: The local grid in major data center corridors like Petah Tikva and Herzliya is well-engineered. Facilities typically benefit from redundant supply lines and sturdy multi-substation support to maintain consistent uptime as of September 2025.

Market Access, Business & Tax Climate

Tel Aviv serves as the economic heart of the region, providing direct access to a highly concentrated tech economy.

Proximity To Key Business Districts: Data centers are concentrated near the Silicon Wadi tech corridor and the financial centers of Tel Aviv. This ensures that latency-sensitive applications for fintech and cybersecurity firms remain close to the end user as of September 2025.

Regional Market Reach: Tel Aviv acts as a critical bridge between Europe and Asia. Its position makes it a logical choice for companies managing data flow across the Mediterranean as of September 2025.

Tax Advantage For Data Centers: Operators benefit from specialized importation routes and VAT exemptions for critical hardware. These incentives significantly reduce the initial capital expenditure for scaling operations within the country as of September 2025.

Natural Disaster Risk

Tel Aviv carries a Low (3.2/10) overall risk rating as of September 2025. While infrastructure is built to modern standards, the following natural hazards are the primary considerations for site selection:

• Earthquake (6.9): The most significant natural risk, managed via strict modern building codes as of September 2025.
• Drought (5.3): A regional reality that influences cooling technology choices and water management as of September 2025.
• Epidemic (4.8): In line with global urban risk levels as of September 2025.
• Tsunami (2.7): A minor regional risk that primarily affects immediate coastal assets as of September 2025.

Other natural hazards are considered minor or are not materially present in this market as of September 2025.