Turkey Data Center Market - Investment Analysis & Growth Opportunities 2024-2029

MARKET OUTLOOK

The Turkey data center market size will witness investments of USD 688.0 million by 2029, growing at a CAGR of 6.52% during the forecast period. Turkey is one of the growing data center markets in the Middle East. Some Turkey data center market operators include Turkcell, Equinix, Telehouse, and Turk Telekom. Due to its strategic location, Turkey is a vital link between Asia and Europe, facilitating business and trade activities. It also plays a crucial role as a traffic route for submarine cables connecting Europe, Asia, and Africa.

The government and public sectors' shift towards a cloud-first strategy is expected to drive cloud adoption and market growth in the country. Huawei Cloud is the only provider with a dedicated cloud region in Istanbul, Turkey. Also, turkey has set a target of achieving net-zero carbon emissions by 2053, with a shorter-term goal of reducing current emissions by 41% by 2030. Data center operators in the country are required to comply with these regulations, contributing to the nation's efforts to meet these targets. Developing Special Economic Zones (SEZs) and Free Trade Zones (FTZs) will likely further stimulate the Turkey data center market. The country has over 10 Free Trade Zones, including the Mersin Free Zone and Antalya Free Zone.

KEY HIGHLIGHTS

• The Turkey data center market has about 31 operational colocation data centers. Most colocation data centers are being developed according to Tier III standards. For instance, Turk Telekom’s Esenyurt facility in Istanbul is built to Tier III standards.
• Istanbul is Turkey's primary location for investments in the Turkey data center market, followed by Ankara, Izmir, and other cities. Istanbul is home to around 20 third-party data center facilities, representing a market share of around 65%.
• Turkey (Istanbul) is the third most expensive market in the Middle East region to develop a data center facility after Saudi Arabia and the UAE. The data center construction cost in 2023 was about $8-$9 million per MW, and it is likely to increase by around 3%- 4% YoY. 
• Deployment and adoption of 5G services in Turkey will fuel data traffic and further grow the demand for more data centers. The telecom operators present in the market include Vodafone Turkey, Turk Telekom, and Turkcell.
• Smart City developments are on the rise in this country. As per IMD’s smart city index list 2023, Istanbul has captured the 107th spot on the global list of smart cities among 141 countries. The HDI (Human Development Index) here is 0.867, much lower than that of other countries in the region, such as the UAE and Saudi Arabia.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size is available in terms of investment, area, power capacity, and Turkey's colocation market revenue.
• An assessment of the data center investment in Turkey by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across cities in the country.
• A detailed study of the existing Turkey data center market landscape, an in-depth market analysis, and insightful predictions about industry size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Turkey
  • Facilities Covered (Existing): 31
  • Facilities Identified (Upcoming): 3
  • Coverage: 6 Cities
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in Turkey
  • Colocation Market Revenue & Forecast
  • Wholesale vs. Retail Colocation Revenue
  • Retail Colocation Pricing
  • Wholesale Colocation Pricing
• The Turkey data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
• A transparent research methodology and the analysis of the demand and supply aspects of the market.

VENDOR LANDSCAPE

• Some key colocation operators in the Turkey data center market are Turkcell, Turk Telekom, Equinix, Telehouse, PenDC, and Radore, among others. 
• EDGNEX Data Centres by DAMAC and EdgeConneX are among the new entrants into the Turkey data center market as of 2023-2024.
• Global colocation service providers are expected to enter the Turkish data center market through strategic partnerships with local enterprises and telecom companies. For instance, EDGNEX Data Centres by DAMAC formed a joint venture with Vodafone Turkey to develop a new data center facility in Izmir.
• Only Huawei Cloud has its dedicated cloud region in Istanbul, Turkey. Other cloud operators like AWS, Google, and Microsoft have yet to launch their cloud regions in the country. Alibaba Group has planned for a data center in Ankara.
• Türk Telekom, an operator of integrated telecommunications, is focused on improving customer service and experience. To this end, it partnered with Micro Focus to create a digital infrastructure and manage and analyze Big Data.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
  • Istanbul
  • Other Cities
• List of Upcoming Facilities in the Region  (Area and Power Capacity)
  • Istanbul
  • Other Cities

REPORT COVERAGE:

This report analyses the Turkey data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

• IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
• Electrical Infrastructure
  • UPS Systems
  • Generators
  • Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Rack Cabinets
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC and CRAH
  • Chillers
  • Cooling Tower and Dry Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Building & Engineering Design
  • Fire Detection & Suppression Systems
  • Physical Security
  • Data Center Infrastructure Management (DCIM)
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV

VENDOR LANDSCAPE

• IT Infrastructure Providers: Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, Hewlett Packard Enterprise, Huawei Technologies, IBM, Inspur, Lenovo.
• Data Center Construction Contractors & Sub-Contractors: AECOM, Anel Group, Arup, Deerns, ENMAAR ENGINEERING, Hill International, Mace, Manco Architects, Prota Engineering, RED Engineering.
• Support Infrastructure Providers: ABB, Airedale, Alfa Laval, Canovate, Caterpillar, Cummins, EAE, Eaton, Grundfos, HITEC Power Protection, Legrand, Rittal, Rolls-Royce, Schneider Electric, Siemens, STULZ, Vertiv.
• Data Center Investors: Equinix, NGN, PenDC, Telehouse, Turkcell, Turk Telekom.
• New Entrants: EdegConneX and EDGNEX Data Centres by DAMAC.