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The Israel Azure region wasn't launched until 2023, and AFAIK has substantially less services available than the others. I know Google's Israel region doesn't have as many GPU options, for example.

Safer from ballistics

might have something to do with the Netherlands being a large investor in Israel. the largest in the EU. It's responsible for two-thirds of EU investment in Israel. https://www.somo.nl/economic-sanctions-eu-is-israel-largest-...

Why build something near or semi near conflict?

Valid question, but just look at the huge amount of R&D / the tech companies in Israel. Even if it’s near conflict, I don’t think companies care

A company doesn't care. An army does.