Something worth noting is that when they call a significant number of reserves to IDF, their industries suffer.
Most SWEs are still 20-40-something men, which would be the same demographic being called to service (I realize women also serve in the IDF, but combat positions are generally reserved for men).
So it's possible that Israel can't rely on their own private tech industry being unaffected during high-engagement periods.
I think the government does have plenty of its own infra (and military tech sectors would be unaffected by calling in reserves), but given the size of the country (and also considering its Palestinian second-class citizens who make up 20% of the Israeli population may not be trusted to work on more sensitive portions of its infrastructure) they're probably not able to manage every part of the stack. Probably only China and the U.S. can do this.
I work with people that have been called up for service there and don't think it's as disruptive to a country's data-center building ability as you suggest.