Turkey Data Center Colocation Market - Supply & Demand Analysis 2025-2030

TURKEY DATA CENTER COLOCATION DEMAND AND SUPPLY HIGHLIGHTS

The Turkey data center colocation market size was valued at USD 161 million in 2024 and is expected to reach USD 476 million by 2030, growing at a CAGR of 19.80% during the forecast period. The factors such as, adoption of artificial intelligence applications, government support for data center industry, rapid digitalization, increasing submarine cable development, sustainability initiatives among data center companies, increasing cloud computing services, deployment of 5G connectivity, advancements in smart city projects, adoption of technologies, like, machine learning, big data, and internet of things and other factors are driving the investments in data center industry in the country.

Turkey is one of the emerging data center colocation markets in the Middle East region, which hosts around 32 operational colocation data center facilities. Some of the prominent colocation providers operating in the Turkey data center colocation market include Turkcell, Turk Telekom, Equinix, and Vodafone. Furthermore, Istanbul is one of the most preferred regions for the development of data centers in Turkey. The city currently consists of approximately 19 operational colocation data centers. Other cities, such as Ankara, Bursa, Izmir, Tekirdağ, Denizli, and others, have also gained traction for data center development in recent years.

Artificial intelligence is revolutionizing the data center industry in Turkey. Data center providers are investing significantly to develop advanced facilities, featuring high-density racks, liquid cooling technologies, clusters of GPUs, and higher core and shell IT power capacities to process artificial intelligence and high-performance computing workloads efficiently. Also, the sectors, such as cloud, IT, BFSI, telecom, and others, contribute significantly to the Turkish data center colocation market. However, the colocation demand is dominated by the cloud and IT sector, driven by the trend of enterprise cloud migration. The enterprises across various sectors in Turkey are expected to migrate their noncritical workloads to the cloud platforms to leverage advanced technologies, like Artificial Intelligence, Internet of Things, Big Data, and others, over the next five years.

Turkey hosts approximately 18 active Free Trade Zones (FTZs), operating under the Free Zones Law No. 3218. These zones provide enterprises with a wide range of incentives to set up and operate their businesses within them. Some of the benefits offered to the enterprises in Free Trade Zones include corporate tax reduction of around 23% and income tax relief ranging between 15% and 35%, 100% foreign ownership, and a shared resources facility. Additionally, the country is witnessing the development of a new free trade zone in 2025.

Turkey is committed to reducing its greenhouse gas emissions by approximately 41% by 2030 and to achieving carbon neutrality by 2053. The country generated around 45% of its overall electricity through renewable sources in 2024. Hydro power is the major source of renewable power in the country. Data center operators are adopting various sustainability practices, such as procuring renewable energy to operate their facilities, using environmentally friendly construction materials, and replacing diesel generators with Hydrotreated Vegetable Oil-powered generators, aligning with the country’s broader sustainability goals.

The country consists of around five operational submarine cables, and it is experiencing the development of five new submarine cables, which are expected to accelerate Turkey’s digital connectivity with other nations, such as Bulgaria, Romania, Cyprus, Greece, Israel, Italy, Bangladesh, Oman, Saudi Arabia, the United Arab Emirates, and others.

WHAT'S INCLUDED?

1. Transparent research methodology and insights on the industry's colocation of demand and supply.
2. The market size is available in terms of utilized white floor area, IT power capacity, and racks.
3. The 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 industry landscape and insightful predictions about industry size during the forecast period.
5. An analysis of the current and future colocation demand in Turkey by several industries.
6. Study on the sustainability status in the country
7. Analysis of current and future cloud operations in the country.
8. Snapshot of upcoming submarine cables and existing cloud-on-ramps services in the country.
9. Snapshot of existing and upcoming third-party data center facilities in Turkey
10. Facilities Covered (Existing): 32
11. Facilities Identified (Upcoming): 04
12. Coverage: 7+ 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 (2024-2030)
17. Retail Colocation Revenue (2024-2030)
18. Wholesale Colocation Revenue (2024-2030)
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 Turkey data center colocation market.
22. Competitive landscape, including industry share analysis by the colocation operators based on IT power capacity and revenue.
23. The vendor landscape of each existing and upcoming colocation operator is based on the existing/ upcoming count of data centers, white floor area, IT power capacity, and data center location.