One of the largest global providers of cloud- and carrier-neutral data center, colocation, and interconnection solutions, Digital Realty, and Mivne Real Estate, have announced the formation of a joint venture. The establishment of this joint venture marks Digital Realty’s entry into the Israeli colocation market with the planned development of a multi-tenant data center campus in Israel.
The joint venture, which will be known as Digital Realty Mivne, represents a strategic collaboration between Digital Realty and Mivne, a market-leading real estate developer, owner, and operator with a substantial land bank that has produced several large-scale projects across Israel.
The new data center colocation campus will be located at a key intersection along the global Internet highway across the Mediterranean region, connecting Europe to the west and Asia, the Middle East, and eastern Africa to the east. Israel would emerge as an alternative cable interconnect route between the Mediterranean Sea and the Red Sea.
The availability and robustness of international subsea cable networks is expected to be improved thanks to this new route. The first terrestrially traversing subsea cable systems have already been disclosed, with more systems on the way.
“Today’s collaboration marks the beginning of a new chapter for Digital Realty’s operations, customers and partners in the Middle East,” said A. William Stein, Digital Realty’s Chief Executive Officer (CEO). “We expect this partnership to further accelerate our growth while enhancing our ability to support our customers’ digital transformation across the globe. This partnership represents consistent execution towards new market entries. We are also gratified to partner with Mivne, leveraging its extensive experience as a local investor and operator. This announcement advances our strategy of developing strategic and highly connected, network dense data centers to strengthen and diversify Digital Realty’s portfolio and expand our product mix and global footprint.”
20 MW Capacity
In Petah Tikvah, Israel’s key connectivity hub, Digital Realty Mivne plans to build a multi-tenant data center facility. Up to 20 megawatts (MW) of installed IT load will be supported by the data center facility. The first phase is expected to be completed in 2023, depending on client demand.
“Entering the field of data centers is a strategic growth engine for Mivne. Due to Mivne’s large and strategic land bank and its extensive geographical distribution across Israel, the joint venture will be able to develop strategically located, purpose-built data centers,” said David Zvida, Chief Executive Officer (CEO) at Mivne. “This strategic partnership with a leading international operator such as Digital Realty, which has proven operating capabilities and extensive relationships with international customers and suppliers, will enable us to gain leadership in the Israeli data center market.”