Turkey Data Center Market, By Solution (IT Infrastructure, Electrical Infrastructure, General Infrastructure, Mechanical Infrastructure, Others), By Type (Corporate and Web Hosting), By End User Industry (IT & Telecom, BFSI, Healthcare, Government, Others), By Region, Competition Forecast & Opportunities, 2028

Turkey Data Center Market was valued at USD 1,181.06 million in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 7.65%. A data center is a facility that houses computer systems and associated components, such as telecommunications and storage systems. It is a critical part of any organization that relies on information technology (IT) to function. Data centers are used to store, process, and distribute data, and are often used to provide services such as web hosting, email, and file sharing. The increasing availability of skilled workforce and operational and development cost advantage across various end-use industries, have led to an increased focus on data centers to overcome the situation of high data consumption. Companies are highly dependent on computer systems that drive their business operations.

Data centers are situated in secure locations with restricted access, the majority of the time. They demand a significant amount of electricity & cooling and often have backup power and fire suppression systems. Data centers are a major part of the modern economy and play an important role in the processing, distribution, and storage of information. Data centers are a crucial component of every organization since they were created to support corporate applications and offer services like productivity applications, high-volume e-commerce transactions, data storage, management, backup, and recovery. Edge data centers can assist in reducing latency for real-time, data-intensive workloads including big data analytics, artificial intelligence (AI), and content delivery apps, enhancing overall application performance and user experience. Turkey’s data center industry is expanding rapidly in the age of digitization. With a predicted expansion driven by technologies like artificial intelligence, machine learning, and analytics, the nation is ideally positioned to become a global hub for data centers focusing on cloud computing.

Increasing Pace of Big Data & IoT

The Turkey data centre market is expanding quickly because of rising corporate demands for Data Storage, Big Data, and the Internet of Things (IoT). Companies are being pushed to use data centres to store their data due to the demand for hyperscale settings, cloud computing, and digital transformation. Moreover, the growth in cloud-based and AI services as a result of innovation, is driving the need for robust infrastructure. Businesses are focusing on on-premise and colocation services to have in-depth control of their workloads and data. Furthermore, the Turkish data centre business is expanding as a result of increasing government efforts and assistance. For instance, recently, a Digital Transformation Centre has been established by the government to assist companies in implementing digital technologies. All of these measures are anticipated to open up new opportunities for the Turkish data centre market in the upcoming years.

Hybrid and Multi-Cloud Adoption

Turkish-based companies have the opportunity to take advantage of a number of benefits linked to hybrid and multi-cloud systems. With the help of this technology, companies can expand their infrastructure and resource allocation as needed, resulting in better performance and reduced costs. Hybrid and multi-cloud strategies allow companies to allocate confidential data to private clouds while leveraging public clouds to host non-essential tasks or specialized services, thus ensuring an optimal compromise between security and convenience. Through this approach, companies are able to evaluate sthe market better, thus commanding greater negotiation leverage, cost optimization opportunities, and access to individually-tailored services.  Moreover, these solutions enable organizations to optimize application performance for latency-sensitive workloads, such as real-time analytics, IoT, and immersive technologies. The usage of edge computing resources and regionally focused data centres dramatically reduces latency, resulting in greater performance advantages. In conclusion, by employing hybrid and multi-cloud architectures in the Turkey data center market, businesses can benefit from improved flexibility, scalability, vendor independence, data governance, performance optimization, and cost efficiency, helping them to deliver tailored solutions that meet their needs in terms of security, compliance, and application performance.

Investment in Infrastructure

Adoption of multi-cloud and hybrid IT environments has increased in the Turkish data centre sector, which has led to the investment in infrastructure necessary to enable seamless integration, such as direct connections and data centre interconnects. These investments provide the underlying physical and network infrastructure required for the successful implementation of hybrid and multi-cloud architectures. For instance, the Information and Communication Technologies Authority (ICTA) issued a regulation to provide guidelines and requirements for data center operations in Turkey. It includes areas including physical infrastructure, network security, power supply, cooling, fire prevention, and disaster recovery. In order to capitalize on this trend, data center providers in Turkey are expanding their service portfolios. These increased service offerings encompass managed services, colocation choices, hybrid-ready systems, and specialised consultancy services. As a result, companies using hybrid and multi-cloud architectures can access comprehensive support when implementing and utilizing their infrastructure. Investment in infrastructure is essential for the successful implementation of hybrid and multi-cloud architectures in the Turkish data centre market because it provides the necessary backbone for secure and efficient connections, low-latency communication, and reliable network connectivity.

Challenges: Cybersecurity Issues

A major concern and problem for the Turkish data centre sector is cybersecurity. The risk of malicious attacks on data centres is rising as cyberattacks get more sophisticated. Businesses must ensure that their data is safe and secure and should invest in the latest cyber security measures to protect their assets.  Companies must assess their internal cyber security policies and ensure they are compliant with Turkey’s laws and regulations. Additionally, investing resources into cyber security education, training, and tools is also important to ensure the correct implementation of policies. Data centres must invest in the newest technical advancements that allow them to preserve data and provide the greatest degree of security against cyber-attacks if they want to remain competitive in the market.

Impact of Covid-19: Accelerated Demand due to WFH

The advancement of remote work or working from home has been driven by numerous contributing factors such as technological advancements, the COVID-19 pandemic, and changing work preferences, resulting in an increased demand for data centers. As a result, data centre operators and service providers in Turkey are expected to improve or extend their current infrastructure and form partnerships and collaborations in order to meet the rising needs of their clients. As a result, Turkey's expanding data centre sector is probably going to open doors for other economic advantages, such as luring investments, generating job possibilities, and supporting the development of the country's digital infrastructure.

Recent Development:

• In March 2021, A new data center chip was introduced by Advanced Micro Devices Inc. in an effort to surpass rival “Intel Corp”. The company's "Milan" data center CPU currently outperforms Intel's top data center CPUs. Both the new processor and its predecessor outperform comparable Intel products, aiding AMD in growing its market share and gaining customers like Google, a subsidiary of Alphabet Inc. As a result, the company is expanding its market share by adopting cutting-edge technology.
• The development of information and communication technologies (ICTs) is a crucial component in Turkey's strategic plan for 2023. This vision aims to transform the country into a knowledge-based society, creating an intercontinental hub for ICTs and stimulating economic growth through the use of ICTs.
• Digital investments significantly increased with the Turkish Government’s 2019-2023 plan and 5G expansion fueled by trials and incentives provided for it. The ICT sector is expected to grow with the transition to 5G and next-gen technologies, thus attracting more data center investments into the country.

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Market Segmentation

The Turkey Data Center market is divided into solution, type, and end user. Based on solution, the market is segmented into IT infrastructure, electrical infrastructure, general infrastructure, mechanical infrastructure, and others. Based on type, the market is segmented into corporate and web hosting. Based on end user industry, the market is segmented into IT & Telecom, BFSI, Healthcare, Government, and others. The market analysis also studies the regional segmentation to devise regional market segmentation, divided among Marmara Region, Central Anatolia, Aegean Region, Mediterranean Region, Black Sea Region, South-Eastern Anatolia Region, Eastern Anatolia Region.

Company Profiles

IBM Turk Limited Company, Telecom Italia Sparkle S.p.A., Equinix Turkey Data Center, Teknotel Telecommunication Industry and Trade Inc., Turkcell Communication Services Inc, Turk Telecommunications Joint Stock Company, Huawei Turkiye, Amazon Web Services Turkiye, Vodafone Turkey, CBRE Turkey are among the major players that are driving the growth of the Turkey Data Center Market.

Report Scope:

In this report, the Turkey Data Center Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Turkey Data Center Market, By Solution:
• IT Infrastructure
• Electrical Infrastructure
• General Infrastructure
• Mechanical Infrastructure
• Others
• Turkey Data Center Market, By Type:
• Corporate
• Web Hosting
• Turkey Data Center Market, End User Industry:
• IT & Telecom
• BFSI
• Healthcare
• Government
• Others
• Turkey Data Center Market, By Region:
• Marmara Region
• Central Anatolia
• Aegean Region
• Mediterranean Region
• Black Sea Region
• South-Eastern Anatolia Region
• Eastern Anatolia Region

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Turkey Data Center market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).