# Israel Data Center Market > Israel data center market: USD 3.18 billion in 2026, USD 12.87 billion by 2035, 20.90% CAGR from 2025, driven by AI campuses within a 1,500 MW grid limit. Publisher: DC Market Insights Author: Amit Jain, DC Market Insights Published: 2025-10-14 Last updated: 2026-10-13 Next review: Apr 2027 Page: https://www.dcmarketinsights.com/report/israel-data-center-market ## Key takeaways - AI Workloads Grow from USD 1.14 billion to USD 10.44 billion - A 140-Day Freeze on New Grid Connections - AI Refresh Reaches USD 5.90 billion **Frequently Asked Questions** **What is the size of the Israel Data Center Market in 2026?** USD 3.18 billion in 2026, up 65.1% from USD 1.93 billion in 2025, according to DC Market Insights estimates. The market is projected to reach USD 12.87 billion by 2035 as AI campuses and cloud regions add 1,500 MW of new capacity. **How fast is the Israel Data Center Market growing?** 20.90% a year from 2025 to 2035, from USD 1.93 billion to USD 12.87 billion (DC Market Insights estimate). The low and high cases give 17.15% and 23.38%, depending on how much grid capacity data centers receive. **What is the Israel Data Center Market?** A USD 1.93 billion market in 2025: the capital spend on Israeli data centers, covering IT infrastructure, power solutions, cooling systems and general construction across about 280 MW of installed IT capacity. Land, electricity and colocation service revenue are excluded. **How much data center capacity does Israel have?** About 280 MW of installed IT capacity at the end of 2025 (DC Market Insights estimate), with 1,500 MW of grid connections committed to data centers and about 27,000 MW of requests pending when the July 2026 freeze began. **What is the fastest growing segment of the Israel Data Center Market?** Colocation and Wholesale, at 25.43% a year to 2035, as AI cloud tenants such as Nebius and Crusoe lease halls from Israeli developers. IT Infrastructure is the largest component at 74.32% of 2025 spend. **How much does it cost to build a data center in Israel?** About USD 11.00 million per MW of IT capacity in 2025 before servers, in line with Ofek's USD 1.5 billion for 130 MW. An AI hall adds about USD 35.00 million per MW of servers, networking and storage. **What is the fastest growing region in the Israel Data Center Market?** The Southern District is the fastest growing region of the Israel Data Center Market, at 32.12% a year to 2035, led by the 130 MW Ofek campus in Ashdod. The Central District (incl. Tel Aviv) remains the largest with 60.00% of 2025 spend. **Who are the leading companies in the Israel Data Center Market?** Amazon Web Services leads with about 25% of 2025 spend (DC Market Insights estimate), followed by Google Cloud, Microsoft, Oracle and NVIDIA; Mega Or, Serverfarm, EdgeConneX and MedOne lead among developers. **How does the 2026 grid freeze affect Israeli data centers?** It pauses new connection requests of 8 MW or more for 140 days from July 2026. DC Market Insights caps new capacity at 1,500 MW over 2026-2035; a 30% shortfall would cut the 2035 market to USD 9.39 billion. **Why do Israel Data Center Market estimates differ?** Because publishers count different layers. This estimate of USD 3.18 billion for 2026 includes servers and other IT equipment but excludes land, electricity and colocation revenue; facility-only counts are smaller. ## Dataset | Series | Value | Unit | | --- | --- | --- | | Market size 2025 | 1,930 | USD million | | Revenue CAGR | 20.9 | % | | Market size 2035 | 12,870 | USD million | ## Frequently asked questions ### What is the size of the Israel Data Center Market in 2026? USD 3.18 billion in 2026, up 65.1% from USD 1.93 billion in 2025, according to DC Market Insights estimates. The market is projected to reach USD 12.87 billion by 2035 as AI campuses and cloud regions add 1,500 MW of new capacity. ### How fast is the Israel Data Center Market growing? 20.90% a year from 2025 to 2035, from USD 1.93 billion to USD 12.87 billion (DC Market Insights estimate). The low and high cases give 17.15% and 23.38%, depending on how much grid capacity data centers receive. ### What is the Israel Data Center Market? A USD 1.93 billion market in 2025: the capital spend on Israeli data centers, covering IT infrastructure, power solutions, cooling systems and general construction across about 280 MW of installed IT capacity. Land, electricity and colocation service revenue are excluded. ### How much data center capacity does Israel have? About 280 MW of installed IT capacity at the end of 2025 (DC Market Insights estimate), with 1,500 MW of grid connections committed to data centers and about 27,000 MW of requests pending when the July 2026 freeze began. ### What is the fastest growing segment of the Israel Data Center Market? Colocation and Wholesale, at 25.43% a year to 2035, as AI cloud tenants such as Nebius and Crusoe lease halls from Israeli developers. IT Infrastructure is the largest component at 74.32% of 2025 spend. ### How much does it cost to build a data center in Israel? About USD 11.00 million per MW of IT capacity in 2025 before servers, in line with Ofek's USD 1.5 billion for 130 MW. An AI hall adds about USD 35.00 million per MW of servers, networking and storage. ### What is the fastest growing region in the Israel Data Center Market? The Southern District is the fastest growing region of the Israel Data Center Market, at 32.12% a year to 2035, led by the 130 MW Ofek campus in Ashdod. The Central District (incl. Tel Aviv) remains the largest with 60.00% of 2025 spend. ### Who are the leading companies in the Israel Data Center Market? Amazon Web Services leads with about 25% of 2025 spend (DC Market Insights estimate), followed by Google Cloud, Microsoft, Oracle and NVIDIA; Mega Or, Serverfarm, EdgeConneX and MedOne lead among developers. ### How does the 2026 grid freeze affect Israeli data centers? It pauses new connection requests of 8 MW or more for 140 days from July 2026. DC Market Insights caps new capacity at 1,500 MW over 2026-2035; a 30% shortfall would cut the 2035 market to USD 9.39 billion. ### Why do Israel Data Center Market estimates differ? Because publishers count different layers. This estimate of USD 3.18 billion for 2026 includes servers and other IT equipment but excludes land, electricity and colocation revenue; facility-only counts are smaller. ## How to cite Data Center Market Research & Consulting | DC Market Insights, "Israel Data Center Market", updated 2026-10-13, https://www.dcmarketinsights.com/report/israel-data-center-market