Digital Realty enters Israeli market through joint venture with Mivne
Digital Realty and Mivne Real Estate (Mivne) have formed a joint venture that will see the former's entry into the Israeli market through the development of a data centre campus in Israel.
The new entity, operating under the brand name Digital Realty Mivne, will serve as a strategic partnership of Digital Realty with Mivne, a real estate developer, owner and operator in Israel.
"Today's collaboration marks the beginning of a new chapter for Digital Realty's operations, customers and partners in the Middle East. We expect this partnership to further accelerate our growth while enhancing our ability to support our customers' digital transformation across the globe," said A. William Stein, CEO of Digital Realty.
"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 centres to strengthen and diversify Digital Realty's portfolio and expand our product mix and global footprint."
Digital Realty Mivne plans to develop a multi-tenant data centre campus in Petah Tikvah, Israel's main connectivity hub. The facility will support up to 20MW of installed IT load.
Israel is emerging as an alternative cable interconnect location between the Mediterranean Sea and the Red Sea, and the new data centre campus will be located at an intersection across the Mediterranean region, connecting Europe to the west and Asia, the Middle East and eastern Africa to the east.
"Entering the field of data centres 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 centres," said David Zvida, CEO of 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 centre market."
The first phase of the project is due to be completed in 2023, in line with customer demand.