Groowe Groowe BETA / Newsroom
⏱ News is delayed by 15 minutes. Sign in for real-time access. Sign in

Turkey Data Center Colocation Market - Supply & Demand Analysis and Forecast 2026-2031 | AI and Cloud Demand Fuel 23.54% CAGR and AI-Ready Capacity Growth

globenewswire.com
EQIX Equinix is mentioned as an existing colocation operator in Turkey, indicating its presence in the growing data center market. The article does not provide specific sentiment towards Equinix itself, but its inclusion suggests participation in a market expected to grow significantly. VOD Vodafone is listed as an existing colocation operator in Turkey. Its inclusion suggests participation in the growing data center market, driven by AI and cloud demand. No specific sentiment is expressed about Vodafone's performance or outlook.

Turkey Data Center Colocation Market - Supply & Demand Analysis and Forecast 2026-2031 | AI and Cloud Demand Fuel 23.54% CAGR and AI-Ready Capacity Growth Dublin, Oct. 06, 2026 (GLOBE NEWSWIRE) -- "Turkey Data Center Colocation Market - Supply & Demand Analysis 2026-2031" has been added to ResearchAndMarkets.com's offering.

Turkey Data Center Colocation Market Forecast 2025-2031

The Turkey data center colocation market is projected to grow at a CAGR of 23.54% from 2025-2031, supported by expanding cloud adoption, artificial intelligence workloads, enterprise digitalization, smart city investments, and rising demand for high-performance computing infrastructure. New facilities, greater rack density, and increased investment from domestic and international operators are expected to strengthen Turkey's position as an emerging regional data center hub.

Market Capacity and Utilized Area

The Turkey data center colocation market is expected to reach 1.47 million square feet of utilized area by 2031. Investment is being supported by the development of free trade zones under the Free Zones Law No. 3218, including a new zone established in 2025. Corporate and income tax incentives available within these zones can encourage enterprises and infrastructure providers to expand their operations in Turkey.

Utilized rack capacity is forecast to reach 42,420 units by 2031. Colocation operators are increasing rack deployments to accommodate demand from enterprises, cloud platforms, telecom providers, and digital service companies. Rising rack power density will also support AI and high-performance computing deployments that require advanced power and cooling infrastructure.

Recent Turkey Data Center Market Developments

Key Market Trends and Growth Drivers

Artificial intelligence and machine learning workloads are major drivers of Turkey data center investment. Enterprises are integrating AI into operational processes, while Turkey's National Artificial Intelligence Strategy 2021-2025 supports innovation, digital transformation, workforce development, and economic growth through a human-centered and agile AI ecosystem.

Digitalization and smart city development are also increasing demand for secure, scalable data infrastructure. Turkey's National Smart Cities Strategy and Action Plan 2024-2030 includes R&D infrastructure and designated testing areas for autonomous vehicle technologies, including logistics applications. These initiatives are expected to generate additional requirements for cloud platforms, edge infrastructure, connectivity, storage, and data processing capacity.

Market Restraints

Supply chain disruption remains a key challenge for Turkey data center development. Operators depend heavily on imported high-performance servers, networking switches, storage systems, semiconductors, and critical infrastructure equipment. Procurement delays and equipment shortages can extend construction schedules, increase project costs, and affect operational planning.

Turkey Data Center Colocation Market Segmentation

The cloud & IT sector accounted for approximately 45% of Turkey's colocation demand in 2025, making it the largest industry segment, followed by telecom. Growth is being driven by enterprise cloud migration, hyperscale cloud adoption, AI, machine learning, and broader digitalization programs.

Retail colocation represented more than 65% of total market revenue in 2025. Wholesale colocation is expected to gain momentum through 2031 as wholesale leasing activity, build-to-suit projects, hyperscale deployments, and AI-ready infrastructure investments increase.

Report Coverage

The market study provides analysis of utilized white floor area, IT power capacity, racks, occupancy, colocation demand, revenue, pricing, sustainability, cloud operations, submarine cable developments, and competitive positioning. Coverage includes 33 existing facilities, four upcoming facilities, and more than four cities. It also examines retail and wholesale colocation revenue forecasts for 2025-2031, pricing trends, market opportunities, development constraints, and operator market share based on IT power capacity and revenue.

Vendor Landscape

Existing colocation operators include Equinix, Turkcell, Turk Telekom, Sadece Hosting, Radore, NGN, KKB Kredi Kayit Burosu, Vodafone, Telehouse, Comnet Turkiye, and Sparkle, alongside other providers. New operators entering the Turkey data center industry include DAMAC Digital, EdgeConneX, and Khazna Data Centers.

The report addresses the number of existing and upcoming colocation facilities in Turkey, expected utilized IT power capacity through 2031, new market entrants, competitive conditions, and the principal factors driving Turkey's data center colocation market.

Key Topics Covered:

1. ABOUT THE ANALYST

2. ABOUT OUR DATA CENTER CAPABILITIES

3. RESEARCH METHODOLOGY

4. MARKET SCOPE

5. MARKET DEFINITIONS

6. MARKET SNAPSHOT:

7. SUPPLY & DEMAND ANALYSIS:

8. MARKET GROWTH FACTORS:

9. COLOCATION REVENUE & PRICING ANALYSIS:

10. MARKET DYNAMICS:

11. COMPETITIVE LANDSCAPE:

12. QUANTITATIVE SUMMARY

A selection of companies mentioned in this report includes, but is not limited to:

For more information about this report visit https://www.researchandmarkets.com/r/t5qflh

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.