Data Centers in Tel Aviv

Tel Aviv – Resilient Hub for Middle East & Europe

Tel Aviv is a primary technology and connectivity hub for the Middle East, offering excellent network infrastructure and direct cloud access. For businesses requiring low-latency connections into European and regional markets, Tel Aviv provides a strategic and resilient base of operations. This market is built for companies prioritizing uptime and scalable growth in a dynamic region.

Tel Aviv: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The Tel Aviv market features a healthy ecosystem with over 5 major service providers operating within its carrier-neutral data centers as of September 2025. This ensures competitive pricing and diverse routing options for colocation customers.

Direct Cloud On-Ramps: With over 2 dedicated on-ramps and 2 local cloud regions as of September 2025, Tel Aviv offers direct, low-latency connectivity to major cloud platforms. Local access is available for AWS. This eliminates the need for long-haul connections to European hubs for many cloud workloads.

Internet Exchange Points (IXPs): The primary exchange is the Israel Internet eXchange (IIX), which facilitates most of the country's domestic traffic peering. This local peering reduces latency for Israeli users and improves overall network performance.

Bare Metal: Bare metal server options are readily available in the Tel Aviv market. Providers like phoenixNAP and Leasebew offer dedicated server solutions for workloads requiring maximum performance and direct hardware control.

Power Analysis

Average Cost Of Power: Industrial electricity rates are estimated between ₪0.50 and ₪0.65 per kWh as of September 2025. These stable power costs allow for predictable operational expense planning for high-density deployments. The grid mix is dominated by natural gas (~70%), providing a degree of independence from global coal price fluctuations.

Power Grid Reliability: Israel's power grid is well-engineered and reliable, particularly in the central economic corridors where data centers are located. The infrastructure is modern, with many facilities supported by redundant feeds from multiple substations to ensure high levels of uptime.

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," the country's high-tech and financial core. This proximity provides low-latency connectivity for startups, financial services firms, and multinational R&D centers.

Regional Market Reach: From Tel Aviv, businesses can effectively serve digital consumers and enterprise clients across Israel, Cyprus, and other Eastern Mediterranean markets. Its strategic location acts as a digital bridge between Europe, Asia, and the Middle East.

Tax Advantage For Data Centers: Israel offers tax incentives that directly benefit data center operators and their customers. The primary advantage is the availability of temporary importation and VAT exemption routes for equipment, which significantly lowers the capital expenditure required to deploy and refresh hardware.

Natural Disaster Risk

Tel Aviv has a moderate overall disaster risk profile, with a score of 3.2 out of 10 as of September 2025. The risk assessment indicates that while several potential hazards exist, the country's infrastructure and coping capacity are well-equipped to manage them.

Key natural hazards to consider include:

• Earthquake: The most significant natural hazard, with a risk score of 6.9.
• Drought: A notable risk at 5.3, impacting water resources but not typically data center operations directly.
• Tsunami: A lower but present risk for coastal areas, scored at 2.7.
• Coastal Flood: Scored at 2.4, this risk is relevant for facilities situated directly on the coastline.