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The Turkey data center colocation market is expected to grow at a CAGR of 23.54% from 2025-2031.Speak directly to the analyst to clarify any post sales queries you may have.
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.RECENT DEVELOPMENTS & NEWS IN TURKEY DATA CENTER COLOCATION MARKET
- 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.
- 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
- 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.
- 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.WHAT'S INCLUDED?
- A transparent research methodology and insights on the colocation demand and supply aspect of the market.
- Market size available in terms of utilized white floor area, IT power capacity, and racks.
- Market size available in terms of Core & Shell Vs Installed Vs Utilized IT Power Capacity, along with the occupancy%.
- The study of the existing Turkey data center market landscape, and insightful predictions about data center market size during the forecast period.
- An analysis of the current and future colocation demand in Turkey by several industries.
- A study on sustainability status in Turkey.
- Analysis of current and future cloud operations in Turkey.
- A snapshot of upcoming submarine cables in Turkey.
- Snapshot of existing and upcoming third-party data center facilities in Turkey.
- Facilities Covered (Existing): 33
- Facilities Identified (Upcoming): 04
- Coverage: 4+ Cities
- Existing vs. Upcoming (White Floor Area)
- Existing vs. Upcoming (IT Load Capacity)
- Data center colocation market in Turkey.
- Colocation Market Revenue & Forecast (2025-2031)
- Retail Colocation Revenue (2025-2031)
- Wholesale Colocation Revenue (2025-2031)
- Retail Colocation Pricing along with Addons
- Wholesale Colocation Pricing along with the pricing trends.
- An analysis of the latest trends, potential opportunities, growth restraints, and prospects for the colocation data center industry in Turkey.
- Competitive landscape including market share analysis by the colocation operators based on IT power capacity and revenue.
- 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.
VENDOR LANDSCAPE
Existing Colocation Operators
- Equinix
- Turkcell
- Turk Telekom
- Sadece Hosting
- Radore
- NGN
- KKB Kredi Kayıt Bürosu
- Vodafone
- Telehouse
- Comnet Türkiye
- Sparkle
- Others
New Operators
- DAMAC Digital
- EdgeConneX
- Khazna Data Centers
KEY QUESTIONS ANSWERED:
1. What is the count of existing and upcoming colocation data center facilities in Turkey?2. How much MW of IT power capacity is likely to be utilized in Turkey by 2031?
3. Who are the new entrants in the Turkey data center industry?
4. What factors are driving Turkey's data center colocation market?
Table of Contents
1. ABOUT THE ANALYST2. ABOUT OUR DATA CENTER CAPABILITIES3. RESEARCH METHODOLOGY4. MARKET SCOPE5. MARKET DEFINITIONS12. QUANTITATIVE SUMMARY
6. MARKET SNAPSHOT:
7. SUPPLY & DEMAND ANALYSIS:
8. MARKET GROWTH FACTORS:
9. COLOCATION REVENUE & PRICING ANALYSIS:
10. MARKET DYNAMICS:
11. COMPETITIVE LANDSCAPE:
Companies Mentioned
- Equinix
- Turkcell
- Turk Telekom
- Sadece Hosting
- Radore
- NGN
- KKB Kredi Kayıt Bürosu
- Vodafone
- Telehouse
- Comnet Türkiye
- Sparkle
- Others
- DAMAC Digital
- EdgeConneX
- Khazna Data Centers
Methodology
Our research comprises a mix of primary and secondary research. The secondary research sources that are typically referred to include, but are not limited to, company websites, annual reports, financial reports, company pipeline charts, broker reports, investor presentations and SEC filings, journals and conferences, internal proprietary databases, news articles, press releases, and webcasts specific to the companies operating in any given market.
Primary research involves email interactions with the industry participants across major geographies. The participants who typically take part in such a process include, but are not limited to, CEOs, VPs, business development managers, market intelligence managers, and national sales managers. We primarily rely on internal research work and internal databases that we have populated over the years. We cross-verify our secondary research findings with the primary respondents participating in the study.
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