Key Insights
The Israel data center cooling market, valued at $15.80 million in 2025, is projected to experience robust growth, driven by the increasing adoption of cloud computing and big data analytics within the country. This expansion is fueled by a surge in data center construction and upgrades to accommodate growing digital infrastructure needs across diverse sectors like IT & Telecommunications, BFSI (Banking, Financial Services, and Insurance), Government, and Media & Entertainment. The market's Compound Annual Growth Rate (CAGR) of 15.40% from 2019 to 2033 indicates a significant upward trajectory. Key growth drivers include the rising demand for high-performance computing, the need for enhanced energy efficiency in data centers, and stringent government regulations promoting sustainable technologies. While the adoption of advanced cooling technologies like liquid-based cooling solutions is expected to gain momentum, air-based cooling will likely remain dominant in the near term due to cost-effectiveness and established infrastructure. However, the increasing focus on reducing energy consumption and carbon footprint will likely propel the adoption of more efficient liquid-based cooling systems over the forecast period. Competition among established players like Johnson Controls, Schneider Electric, and others, along with emerging technology providers, is fostering innovation and driving down costs, making data center cooling solutions more accessible across various market segments.
The forecast period (2025-2033) anticipates continuous expansion fueled by ongoing digital transformation within Israel's various sectors. The government's commitment to digital infrastructure development is further stimulating market growth. While potential restraints could include fluctuating energy prices and the initial high capital expenditure associated with advanced cooling technologies, the long-term benefits of increased efficiency and reduced operational costs are expected to outweigh these challenges. The market segmentation, with IT & Telecommunications representing a significant share, highlights the sector’s crucial role in driving market demand. The consistent growth across all segments reflects the broad-based adoption of data center cooling solutions, indicating a healthy and expanding market in Israel.
Israel Data Center Cooling Market: A Comprehensive Report (2019-2033)
This comprehensive report provides an in-depth analysis of the Israel Data Center Cooling market, offering invaluable insights for stakeholders across the value chain. From market size and segmentation to key players and future trends, this report is your essential guide to navigating this dynamic sector. The study period covers 2019-2033, with 2025 as the base and estimated year. The forecast period spans 2025-2033, and the historical period encompasses 2019-2024. Expect detailed analysis of market dynamics, technological advancements, and competitive landscapes, all presented with actionable data and projections.

Israel Data Center Cooling Market Market Dynamics & Concentration
The Israeli data center cooling market is characterized by a moderately concentrated landscape, with a handful of global players holding significant market share. The market size in 2025 is estimated at xx Million, projected to reach xx Million by 2033, exhibiting a CAGR of xx%. Innovation is a key driver, with companies constantly developing more efficient and sustainable cooling solutions to meet the growing demand for data processing power. Stringent regulatory frameworks focused on energy efficiency and environmental sustainability influence market strategies. Air-based cooling currently dominates the market but faces increasing competition from liquid-based cooling systems as data center densities rise. The market witnesses a moderate level of M&A activity, with approximately xx deals recorded in the past five years, reflecting the industry’s consolidation trend. End-user trends show a growing preference for advanced cooling technologies, particularly in the IT and Telecommunication sectors.
- Market Concentration: Top 5 players hold approximately xx% market share.
- Innovation Drivers: Rising data center densities, demand for higher energy efficiency, and environmental regulations.
- Regulatory Framework: Focus on energy efficiency standards and environmental impact.
- Product Substitutes: Liquid-based cooling systems increasingly competing with air-based cooling.
- M&A Activity: xx deals in the past 5 years, indicating consolidation.
- End-User Trends: Strong growth in IT and Telecommunication, followed by BFSI and Government sectors.
Israel Data Center Cooling Market Industry Trends & Analysis
The Israel Data Center Cooling market is experiencing robust growth fueled by the expanding digital economy, increasing adoption of cloud computing, and the burgeoning need for high-performance computing (HPC). The market is witnessing significant technological disruptions, with liquid cooling emerging as a key trend to address the limitations of traditional air cooling in high-density data centers. Consumer preferences are shifting towards energy-efficient and environmentally friendly cooling solutions. The competitive dynamics are marked by intense competition among established players and the emergence of innovative startups. Market penetration of liquid cooling technologies is expected to grow from xx% in 2025 to xx% by 2033.

Leading Markets & Segments in Israel Data Center Cooling Market
The IT and Telecommunication sector is the dominant end-user segment in the Israel Data Center Cooling market, driven by the rapid expansion of data centers and cloud infrastructure. Air-based cooling currently holds the largest market share in terms of cooling technology, but liquid-based cooling is witnessing significant growth due to its higher efficiency in handling high-density computing environments. Tel Aviv and other major metropolitan areas are leading regional markets due to the high concentration of data centers.
Key Drivers for IT and Telecommunication Segment:
- Increasing data center deployments.
- Growing adoption of cloud services.
- High density computing requirements.
Key Drivers for Air-based Cooling:
- Established technology with lower initial investment costs.
- Relatively easier implementation compared to liquid-based systems.
Key Drivers for Liquid-based Cooling:
- Superior cooling efficiency for high-density environments.
- Reduced energy consumption compared to air-based cooling.
Dominance Analysis: The IT and Telecommunications sector's dominance is projected to continue throughout the forecast period, driven by ongoing digital transformation and cloud adoption. Air-based cooling will likely maintain its market share but witness decreasing growth compared to liquid cooling.
Israel Data Center Cooling Market Product Developments
Recent innovations focus on enhancing the energy efficiency and cooling capacity of both air-based and liquid-based cooling systems. This includes advancements in heat exchanger technology, improved refrigerant management, and the integration of AI-powered monitoring and control systems. Immersion cooling is gaining traction for its ability to handle extremely high-density computing environments, and advancements like the Kelvion-Rousseau partnership signal the market's growing interest in this space. These innovations address the market's growing need for sustainable and high-performance cooling solutions for next-generation data centers.
Key Drivers of Israel Data Center Cooling Market Growth
The Israel Data Center Cooling market’s growth is driven by several factors. The surge in data consumption and the subsequent need for more data centers are primary catalysts. Government initiatives promoting digital transformation and cloud adoption contribute significantly. The increasing demand for higher computing power and data processing speed necessitates more efficient and robust cooling solutions. Furthermore, stringent environmental regulations promote the adoption of energy-efficient cooling technologies.
Challenges in the Israel Data Center Cooling Market
The market faces challenges including the high initial investment costs associated with advanced cooling technologies, especially liquid cooling. Supply chain disruptions and the availability of skilled labor can hinder market growth. Intense competition among vendors necessitates continuous innovation and cost optimization. Furthermore, regulatory complexities can impede the swift adoption of new technologies. These factors collectively impact the market’s expansion rate, influencing the overall trajectory of the sector.
Emerging Opportunities in Israel Data Center Cooling Market
Significant opportunities exist in the development and deployment of sustainable and energy-efficient cooling solutions. The growing adoption of liquid cooling, particularly immersion cooling, presents immense potential. Strategic partnerships between technology providers and data center operators facilitate faster market penetration. Expansion into emerging segments like edge computing and the Internet of Things (IoT) opens new avenues for growth. These opportunities promise to shape the future of the Israel Data Center Cooling market.
Leading Players in the Israel Data Center Cooling Market Sector
- Johnson Controls International PLC
- Asetek A/S
- Schneider Electric SE
- Emerson Electric Co
- Mitsubishi Electric Hydronics & IT Cooling Systems SpA
- Fujitsu General Limited
- Stulz GmbH
- Airedale International Air Conditioning
- Vertiv Group Corp
- Rittal GMBH & Co KG
Key Milestones in Israel Data Center Cooling Market Industry
- January 2024: Aligned launched DeltaFlow, a liquid cooling system capable of cooling densities up to 300 kW per rack. This signifies a move towards higher-density data centers and increased demand for efficient cooling solutions.
- March 2024: Kelvion and Rosseau partnered to offer enhanced immersion cooling solutions for the HPC market. This collaboration highlights the increasing focus on immersion cooling technologies for high-performance computing applications.
Strategic Outlook for Israel Data Center Cooling Market Market
The future of the Israel Data Center Cooling market is promising, driven by sustained growth in data consumption and the deployment of advanced data center technologies. The increasing adoption of energy-efficient cooling solutions and the rise of liquid cooling systems present significant opportunities for market players. Strategic partnerships and technological innovations will be crucial for capturing market share and achieving sustained growth. The market is poised for significant expansion as it adapts to meet the ever-increasing demands of the digital economy.
Israel Data Center Cooling Market Segmentation
-
1. Cooling Technology
-
1.1. Air-based Cooling
- 1.1.1. Chiller and Economizer
- 1.1.2. CRAH
- 1.1.3. Cooling
- 1.1.4. Others
-
1.2. Liquid-based Cooling
- 1.2.1. Immersion Cooling
- 1.2.2. Direct-to-Chip Cooling
- 1.2.3. Rear-Door Heat Exchanger
-
1.1. Air-based Cooling
-
2. Type
- 2.1. Hyperscalers (owned & Leased)
- 2.2. Enterprise (On-premise)
- 2.3. Colocation
-
3. End user Vertical
- 3.1. IT & Telecom
- 3.2. Retail & Consumer Goods
- 3.3. Healthcare
- 3.4. Media & Entertainment
- 3.5. Federal & Institutional agencies
- 3.6. Other end-users
Israel Data Center Cooling Market Segmentation By Geography
- 1. Israel

Israel Data Center Cooling Market REPORT HIGHLIGHTS
Aspects | Details |
---|---|
Study Period | 2019-2033 |
Base Year | 2024 |
Estimated Year | 2025 |
Forecast Period | 2025-2033 |
Historical Period | 2019-2024 |
Growth Rate | CAGR of 15.40% from 2019-2033 |
Segmentation |
|
Table of Contents
- 1. Introduction
- 1.1. Research Scope
- 1.2. Market Segmentation
- 1.3. Research Methodology
- 1.4. Definitions and Assumptions
- 2. Executive Summary
- 2.1. Introduction
- 3. Market Dynamics
- 3.1. Introduction
- 3.2. Market Drivers
- 3.2.1. Increasing Trend of High-performance Computing Across Europe; Growing Rack Power Density
- 3.3. Market Restrains
- 3.3.1. High Initial Investments
- 3.4. Market Trends
- 3.4.1. IT and Telecom to Have Significant Market Share
- 4. Market Factor Analysis
- 4.1. Porters Five Forces
- 4.2. Supply/Value Chain
- 4.3. PESTEL analysis
- 4.4. Market Entropy
- 4.5. Patent/Trademark Analysis
- 5. Israel Data Center Cooling Market Analysis, Insights and Forecast, 2019-2031
- 5.1. Market Analysis, Insights and Forecast - by Cooling Technology
- 5.1.1. Air-based Cooling
- 5.1.1.1. Chiller and Economizer
- 5.1.1.2. CRAH
- 5.1.1.3. Cooling
- 5.1.1.4. Others
- 5.1.2. Liquid-based Cooling
- 5.1.2.1. Immersion Cooling
- 5.1.2.2. Direct-to-Chip Cooling
- 5.1.2.3. Rear-Door Heat Exchanger
- 5.1.1. Air-based Cooling
- 5.2. Market Analysis, Insights and Forecast - by Type
- 5.2.1. Hyperscalers (owned & Leased)
- 5.2.2. Enterprise (On-premise)
- 5.2.3. Colocation
- 5.3. Market Analysis, Insights and Forecast - by End user Vertical
- 5.3.1. IT & Telecom
- 5.3.2. Retail & Consumer Goods
- 5.3.3. Healthcare
- 5.3.4. Media & Entertainment
- 5.3.5. Federal & Institutional agencies
- 5.3.6. Other end-users
- 5.4. Market Analysis, Insights and Forecast - by Region
- 5.4.1. Israel
- 5.1. Market Analysis, Insights and Forecast - by Cooling Technology
- 6. Competitive Analysis
- 6.1. Market Share Analysis 2024
- 6.2. Company Profiles
- 6.2.1 Johnson Controls International PLC
- 6.2.1.1. Overview
- 6.2.1.2. Products
- 6.2.1.3. SWOT Analysis
- 6.2.1.4. Recent Developments
- 6.2.1.5. Financials (Based on Availability)
- 6.2.2 Asetek A/S
- 6.2.2.1. Overview
- 6.2.2.2. Products
- 6.2.2.3. SWOT Analysis
- 6.2.2.4. Recent Developments
- 6.2.2.5. Financials (Based on Availability)
- 6.2.3 Schneider Electric SE
- 6.2.3.1. Overview
- 6.2.3.2. Products
- 6.2.3.3. SWOT Analysis
- 6.2.3.4. Recent Developments
- 6.2.3.5. Financials (Based on Availability)
- 6.2.4 Emerson Electric Co *List Not Exhaustive
- 6.2.4.1. Overview
- 6.2.4.2. Products
- 6.2.4.3. SWOT Analysis
- 6.2.4.4. Recent Developments
- 6.2.4.5. Financials (Based on Availability)
- 6.2.5 Mitsubishi Electric Hydronics & IT Cooling Systems SpA
- 6.2.5.1. Overview
- 6.2.5.2. Products
- 6.2.5.3. SWOT Analysis
- 6.2.5.4. Recent Developments
- 6.2.5.5. Financials (Based on Availability)
- 6.2.6 Fujitsu General Limited
- 6.2.6.1. Overview
- 6.2.6.2. Products
- 6.2.6.3. SWOT Analysis
- 6.2.6.4. Recent Developments
- 6.2.6.5. Financials (Based on Availability)
- 6.2.7 Stulz GmbH
- 6.2.7.1. Overview
- 6.2.7.2. Products
- 6.2.7.3. SWOT Analysis
- 6.2.7.4. Recent Developments
- 6.2.7.5. Financials (Based on Availability)
- 6.2.8 Airedale International Air Conditioning
- 6.2.8.1. Overview
- 6.2.8.2. Products
- 6.2.8.3. SWOT Analysis
- 6.2.8.4. Recent Developments
- 6.2.8.5. Financials (Based on Availability)
- 6.2.9 Vertiv Group Corp
- 6.2.9.1. Overview
- 6.2.9.2. Products
- 6.2.9.3. SWOT Analysis
- 6.2.9.4. Recent Developments
- 6.2.9.5. Financials (Based on Availability)
- 6.2.10 Rittal GMBH & Co KG
- 6.2.10.1. Overview
- 6.2.10.2. Products
- 6.2.10.3. SWOT Analysis
- 6.2.10.4. Recent Developments
- 6.2.10.5. Financials (Based on Availability)
- 6.2.1 Johnson Controls International PLC
List of Figures
- Figure 1: Israel Data Center Cooling Market Revenue Breakdown (Million, %) by Product 2024 & 2032
- Figure 2: Israel Data Center Cooling Market Share (%) by Company 2024
List of Tables
- Table 1: Israel Data Center Cooling Market Revenue Million Forecast, by Region 2019 & 2032
- Table 2: Israel Data Center Cooling Market Revenue Million Forecast, by Cooling Technology 2019 & 2032
- Table 3: Israel Data Center Cooling Market Revenue Million Forecast, by Type 2019 & 2032
- Table 4: Israel Data Center Cooling Market Revenue Million Forecast, by End user Vertical 2019 & 2032
- Table 5: Israel Data Center Cooling Market Revenue Million Forecast, by Region 2019 & 2032
- Table 6: Israel Data Center Cooling Market Revenue Million Forecast, by Country 2019 & 2032
- Table 7: Israel Data Center Cooling Market Revenue Million Forecast, by Cooling Technology 2019 & 2032
- Table 8: Israel Data Center Cooling Market Revenue Million Forecast, by Type 2019 & 2032
- Table 9: Israel Data Center Cooling Market Revenue Million Forecast, by End user Vertical 2019 & 2032
- Table 10: Israel Data Center Cooling Market Revenue Million Forecast, by Country 2019 & 2032
Frequently Asked Questions
1. What is the projected Compound Annual Growth Rate (CAGR) of the Israel Data Center Cooling Market?
The projected CAGR is approximately 15.40%.
2. Which companies are prominent players in the Israel Data Center Cooling Market?
Key companies in the market include Johnson Controls International PLC, Asetek A/S, Schneider Electric SE, Emerson Electric Co *List Not Exhaustive, Mitsubishi Electric Hydronics & IT Cooling Systems SpA, Fujitsu General Limited, Stulz GmbH, Airedale International Air Conditioning, Vertiv Group Corp, Rittal GMBH & Co KG.
3. What are the main segments of the Israel Data Center Cooling Market?
The market segments include Cooling Technology, Type, End user Vertical.
4. Can you provide details about the market size?
The market size is estimated to be USD 15.80 Million as of 2022.
5. What are some drivers contributing to market growth?
Increasing Trend of High-performance Computing Across Europe; Growing Rack Power Density.
6. What are the notable trends driving market growth?
IT and Telecom to Have Significant Market Share.
7. Are there any restraints impacting market growth?
High Initial Investments.
8. Can you provide examples of recent developments in the market?
March 2024: German heat exchanger manufacturer Kelvion and US immersion cooling company Rosseau announced a partnership to deliver enhanced immersion cooling solutions for the high-performance computing (HPC) market.
9. What pricing options are available for accessing the report?
Pricing options include single-user, multi-user, and enterprise licenses priced at USD 3800, USD 4500, and USD 5800 respectively.
10. Is the market size provided in terms of value or volume?
The market size is provided in terms of value, measured in Million.
11. Are there any specific market keywords associated with the report?
Yes, the market keyword associated with the report is "Israel Data Center Cooling Market," which aids in identifying and referencing the specific market segment covered.
12. How do I determine which pricing option suits my needs best?
The pricing options vary based on user requirements and access needs. Individual users may opt for single-user licenses, while businesses requiring broader access may choose multi-user or enterprise licenses for cost-effective access to the report.
13. Are there any additional resources or data provided in the Israel Data Center Cooling Market report?
While the report offers comprehensive insights, it's advisable to review the specific contents or supplementary materials provided to ascertain if additional resources or data are available.
14. How can I stay updated on further developments or reports in the Israel Data Center Cooling Market?
To stay informed about further developments, trends, and reports in the Israel Data Center Cooling Market, consider subscribing to industry newsletters, following relevant companies and organizations, or regularly checking reputable industry news sources and publications.
Methodology
Step 1 - Identification of Relevant Samples Size from Population Database



Step 2 - Approaches for Defining Global Market Size (Value, Volume* & Price*)

Note*: In applicable scenarios
Step 3 - Data Sources
Primary Research
- Web Analytics
- Survey Reports
- Research Institute
- Latest Research Reports
- Opinion Leaders
Secondary Research
- Annual Reports
- White Paper
- Latest Press Release
- Industry Association
- Paid Database
- Investor Presentations

Step 4 - Data Triangulation
Involves using different sources of information in order to increase the validity of a study
These sources are likely to be stakeholders in a program - participants, other researchers, program staff, other community members, and so on.
Then we put all data in single framework & apply various statistical tools to find out the dynamic on the market.
During the analysis stage, feedback from the stakeholder groups would be compared to determine areas of agreement as well as areas of divergence