Turkey Data Center Colocation Market Growth Insights – Revenue to Reach USD 640 Million, Utilized White Floor Area to Reach 1.47 Million Sq. Ft., Utilized Racks to Surpass 42,420 Units, and IT Power Capacity to Reach 292 MW by 2031, Growing at a CAGR of 23.54% (2026–2031)

TURKEY DATA CENTER COLOCATION MARKET SIZE

The Turkey data center colocation market size in terms of revenue was valued at USD 180 million in 2025 and is anticipated to reach USD 640 million by 2031, growing at a CAGR of 23.54% during the forecast period. The country accounts for approximately 33 operational data centers spread across multiple locations like Ankara, Bursa, Izmir, Denizli, Tekirdağ, and others. Istanbul is among the most attractive destinations for the development of colocation data centers in Turkey.

Turkey has emerged as a key global hub for digital infrastructure owing to its strategic location and the rapidly growing economy. Serving as a vital link among Europe, Asia, the Middle East, and Africa, the country offers a strong alternative for connecting regional and international networks. The surge in colocation demand is being driven by sectors such as finance, telecommunications, cloud services, and AI, along with a fast-digitizing economy and its strategic positioning, all of which are accelerating the growth of the Turkey data center market.

In Turkey, the data centers that host personal data are required to comply with the Personal Data Protection Law, Kişisel Verilerin Korunması Kanunu (KVKK), which mandates lawful grounds for data processing, the protection of data subject rights, defined data retention policies, as well as secure storage and erasure mechanisms. Operators must register as data controllers or processors, implement appropriate technical and organizational safeguards, as well as remain subject to regulatory audits and mandatory breach notification requirements.

Traditional air-cooling technologies in data center facilities are unable to handle the heat produced by high-density AI racks; therefore, newly constructed data centers are being equipped with advanced liquid cooling technologies, such as immersion cooling technologies and direct-to-chip liquid cooling technologies. For instance, in June 2026, Türk Telekom has tested liquid immersion cooling technology, which is used to reduce energy consumption in high-capacity data center cooling operations.

The Turkish government is making significant efforts to reduce its greenhouse gas emissions by 41% by 2030, and the country is committed to achieving carbon neutrality by 2053. Data center companies in Turkey are procuring renewable energy to power their facility operations. For instance, Telehouse is committed to powering its entire data center operations with 100% renewable energy.

TURKEY DATA CENTER COLOCATION MARKET INSIGHTS BY UTILIZED AREA

The Turkey data center colocation market by utilized area is expected to reach 1.47 million square feet by 2031. This growth is supported by the development of free trade zones (FTZs), which operate under the Free Zones Law No. 3218 and offer several benefits to enterprises establishing and operating their businesses within these zones. These benefits include tax deductions, such as corporate and income tax incentives. The country also witnessed the development of a new free trade zone in 2025, further supporting business and investment activity.

TURKEY DATA CENTER COLOCATION MARKET INSIGHTS BY UTILIZED RACKS

The Turkey data center colocation market by utilized racks is expected to reach 42,420 units by 2031. This growth is supported by the expanding rack capacity and high utilization levels across colocation facilities in Turkey. Data center operators have continued to increase rack deployments to meet growing demand from enterprises and digital services. At the same time, rising rack power density is expected to further support market growth, driven by increasing AI workloads and high-performance computing requirements.

Key Takeaways

1. Colocation Demand: In terms of colocation demand by industry, the cloud & IT sector dominated the market in 2025 with the largest share of around 45%.
2. Colocation Revenue: The retail colocation dominates for over 65% of the market’s total revenue share in 2025.

RECENT DEVELOPMENTS & NEWS IN TURKEY DATA CENTER COLOCATION MARKET

1. Turk Telekom has entered a strategic collaboration with Cisco to integrate advanced cloud‑based and IoT platforms into its data centers, representing an investment in next‑generation 5G and cloud technology infrastructure; this will enhance digital services and data center capabilities in Turkey’s telecom ecosystem.
2. TDC Data Services, a subsidiary of Turkcell, has secured $117 million in five‑year Murabaha financing from Emirates NBD Bank to accelerate data center expansion and digital infrastructure investments across Turkey, underscoring strong investor confidence as well as backing Turkcell’s growth in cloud and data center capacity
3. Khazna Data Centers announced plans to build an AI-ready facility located in the Başkent OIZ, southwest of Ankara. Once fully built, it will add around 500 thousand square feet of whitespace area.
4. In September 2026, DAMAC Digital and Vodafone inaugurated the first phase of the Izmir data center. The facility will initially deliver 4MW of capacity, with plans to eventually reach 20MW.

TURKEY DATA CENTER COLOCATION MARKET TRENDS & DRIVERS

Expansion of Artificial Intelligence & Machine Learning Workloads

Artificial Intelligence is one of the most significant factors, which is fueling data center investments in Turkey. Several enterprises and individuals are prioritizing integrating AI into their daily tasks to improve efficiency. Turkey's National Artificial Intelligence Strategy (NAIS) 2021–2025 aims to develop a human-centered and agile AI ecosystem, which will strengthen the country's innovation, support digital transformation, and boost economic growth.

Increase in Digitalization and Smart City Developments

Turkey is embracing digitalization and smart city trends under several initiatives, such as introducing various strategies and action plans to enhance public services, improve urban efficiency, and support sustainable economic growth. The National Smart Cities Strategy and Action Plan 2024–2030 in Turkey outlines plans to integrate autonomous vehicle technologies into smart urban development by building R&D infrastructure and designated test areas for using autonomous vehicle technologies in logistics.

INDUSTRY RESTRAINTS

Supply Chain Challenges impacting Data Center Development

Supply chain disruptions have emerged as a significant barrier for the development of data centers in Turkey, impacting data center construction timelines and operational efficiency. One of the core challenges faced by data centers due to supply chain disruptions is the complexity in the procurement of critical IT hardware. Data centers require high-performance servers, networking switches, and storage systems, which are mostly shipped from foreign countries. Data center operators are extending their lead times for data center construction due to the shortage of essential infrastructure and semiconductors.

TURKEY DATA CENTER COLOCATION MARKET SEGMENTATION INSIGHTS

INSIGHTS BY COLOCATION DEMAND

In terms of colocation demand by industry, the cloud & IT sector dominated the market in 2025 with the largest share of Turkey’s colocation demand, accounting for around 45%, followed by telecom. This domination is led by a rapid surge in enterprise cloud migration, hyperscale cloud adoption, advancements in emerging technologies like cloud computing, artificial intelligence, machine learning, and others, along with rising enterprise digitalization initiatives.

INSIGHTS BY COLOCATION REVENUE

In terms of revenue, retail colocation dominates for over 65% of the market’s total revenue share in 2025. The wholesale segment is expected to gain traction during the forecast period, driven by the rapid surge in wholesale leasing activity, build-to-suit deployment models, and continuous hyperscale and AI-ready infrastructure deployments.

TURKEY DATA CENTER COLOCATION MARKET VENDOR LANDSCAPE

Major colocation companies such as Turkcell, Turk Telekom, Equinix, Vodafone, Telehouse, Comnet Türkiye, Sparkle, Radore, VeriTeknik, among others, have been considered to determine the revenue of the Turkey colocation market. Among all the companies, which have been considered to determine the colocation revenue of the country, Turkcell led the Turkey’s colocation market in terms of colocation revenue generation with the highest colocation market revenue share.

Equinix, a global colocation provider, operates two data center facilities in Istanbul, Turkey, and it has contributed around 15% to the colocation revenue share in Turkey data center colocation market, followed by Vodafone in the country during the same period.

WHAT'S INCLUDED?

1. A transparent research methodology and insights on the colocation demand and supply aspect of the market.
2. Market size available in terms of utilized white floor area, IT power capacity, and racks.
3. Market size available in terms of Core & Shell Vs Installed Vs Utilized IT Power Capacity, along with the occupancy%.
4. The study of the existing Turkey data center market landscape, and insightful predictions about data center market size during the forecast period.
5. An analysis of the current and future colocation demand in Turkey by several industries.
6. A study on sustainability status in Turkey.
7. Analysis of current and future cloud operations in Turkey.
8. A snapshot of upcoming submarine cables in Turkey.
9. Snapshot of existing and upcoming third-party data center facilities in Turkey.
10. Facilities Covered (Existing): 33
11. Facilities Identified (Upcoming): 04
12. Coverage: 4+ Cities
13. Existing vs. Upcoming (White Floor Area)
14. Existing vs. Upcoming (IT Load Capacity)
15. Data center colocation market in Turkey.
16. Colocation Market Revenue & Forecast (2025-2031)
17. Retail Colocation Revenue (2025-2031)
18. Wholesale Colocation Revenue (2025-2031)
19. Retail Colocation Pricing along with Addons
20. Wholesale Colocation Pricing along with the pricing trends.
21. An analysis of the latest trends, potential opportunities, growth restraints, and prospects for the colocation data center industry in Turkey.
22. Competitive landscape including market share analysis by the colocation operators based on IT power capacity and revenue.
23. Vendor landscape of each existing and upcoming colocation operator based on existing/ upcoming count of data centers, white floor area, IT power capacity, and data center location.

TARGET AUDIENCE

1. Data center Real Estate Investment Trusts (REITs)
2. Data center Construction Contractors
3. Data center Infrastructure Providers
4. New Entrants
5. Consultants/Consultancies/Advisory Firms
6. Corporate and Government Agencies