Report Overview

Turkey Data Center market is growing due to the transition from on-premises models to cloud and colocation services, as well as the digitization of the key industry verticals. More corporations are anticipated to establish operations in Turkey owing to the country's strong economic position, advantageous geographic location, and cultural linkages to the Middle East and other European nations. Additionally, during the next five years, it is anticipated that the market for data centers in Turkey would expand due to the developing IT sector and rising awareness of the usefulness of data for corporate growth.

Turkey Data Center Market - Industry Trends & Forecast Report 2028

Turkey data center market was worth USD 665.3 million in 2021 and is further projected to reach USD 964.9 million by the year 2028, exhibiting a CAGR of 5.5% during the forecast period. The rapid expansion of the data center market is predominantly due to the transition from on-premises models to cloud and colocation services, as well as the digitization of the key industry verticals. More corporations are anticipated to establish operations in Turkey owing to the country's strong economic position, advantageous geographic location, and cultural linkages to the Middle East and other European nations. Additionally, during the next five years, it is anticipated that the market for data centers in Turkey would expand due to the developing IT sector and rising awareness of the usefulness of data for corporate growth.

Data Center - Overview

A data center is a physical location where firms keep vital applications and data. The network of computing and storage resources that support the delivery of shared applications and data forms the foundation of the data center's structure. Important elements of a data center's design include routers, firewalls, switches, servers, storage devices, and application delivery controllers. Data center safety is crucial for the implementation of data centers as these components manage and store important company data and applications. Data center modules need significant infrastructures to operate the center's software and hardware. These consist of backup systems, auxiliary network connections, ventilation, cooling equipment, and a stable power supply (UPS). Companies choose to outsource their data operations to other companies that are experts in running data centers.

Turkey Data Center Market Forecast and Trends

Growth Drivers

Favorable Government Policies Encourage Rapid Market Expansion

The government is making significant investments in creating first-rate infrastructure to enable it to support cloud architecture, IoT, and Big Data applications. The responsible authorities initiated a plan to boost the data center industry in Turkey, which also promised a 30 percent energy bill discount for up to ten years. The offer was subject to the provision that any future projects adhere to Tier III level criteria and have a minimum of 5,000 square meters of white space. Based on economic growth and the activities of the data center facility, the government is also offering sales tax advantages. With the help of various tax advantages, free zones are created to draw in investments.

The World Bank has started a project that will assist Organized Industrial Zones in developing their infrastructure in order to help them become more technologically sophisticated and effective. With 346 organized industrial zones spread out over 81 nations, Turkey is projected to draw operators of data centers to locate their operations there. Technology Development Zones (TDZs) are places created with the intention of luring high-end investments in high-tech domains and fostering R&D activities. In Turkey, there are 84 Technology Development Zones, 63 of which are active, while the remaining 16 are in the planning stages.

The Benefits Of Establishing Data Center Facilities Will Fuel Market Expansion

Businesses are continuously seeking ways to cut their maintenance and operational costs. An organization's operational expenditures are increased by data center servers, racks, electricity costs, and HVAC systems. Instead of making capital and energy investments, businesses are starting to opt to use data center services. With more businesses choosing to use data centers, Turkey's data center industry is growing, which is good news for the sector. Setting up the data center infrastructure and establishing power systems cost data centers require a large amount of money. Organizations can concentrate on ways to boost efficiency in the workplace by using data center services. Data centers provide redundancy and flexibility, streamline vital infrastructure, and more efficiently use IT resources. It can assist the company in achieving greater energy efficiencies and improve the security of sensitive data within an organization. In the projection term, Turkey's data center is anticipated to benefit from profitable growth possibilities due to its benefits.

Restraints

Requires Huge Amount Of Capital For Investment

The data center industry may very well be an area where businesses may make a lot of money, and it may also have significant prospects for future financial success, but it also has disadvantages. The biggest disadvantage is that businesses must have a large amount of capital to invest in building data centers before they even join the market. Other reasons that are anticipated to function as a barrier to market expansion include worries about the product's high price as well as ignorance about proper Data Center utilization, among other things.

Impact of COVID-19 on Turkey Data Center Market

The expansion of the data center market in 2020 has been considerably impacted by the advent of COVID-19. The pandemic has severely harmed the economy by forcing lockdowns, travel bans, and company closures in the majority of countries. The market for building data centers has been impacted by COVID-19. Sales and production of data centers were impeded by low investment costs and a labor shortage. New safety measures were, however, established by the government and major market actors to develop the procedures. The market for data center construction grew more quickly due to technological advances because it was able to reach the proper customers. Due to the loosening of the constraints, the market for data centers is picking up steam in the post-pandemic environment.

Turkey Data Center Market - By Solution

Based on the solution, the market is divided into IT, general, mechanical, electrical, and other infrastructure. IT infrastructure is anticipated to have the biggest market share among these over the projection period. Additionally, anticipated factors to affect the fuel of the segment demand include the surge in investments for the construction of data centers in the nation and the introduction of foreign market competitors. Also anticipated to increase the need for IT infrastructure are the anticipated rollout of 5G technology and the increased use of IoT-based devices.

Turkey Data Center Market - By Type

On the basis of type, the market is divided into corporate and web hosting. In the following five years, corporate hosting is anticipated to rule the market. The demand for the sector is being driven by the intensifying competition amongst the leading market players and the rise in the adoption of cutting-edge technologies to improve organizational and operational efficiency. Additionally, small and medium-sized businesses actively purchase public cloud technology since it is more economical and enables remote access to the data from any region for the end-user.

Competitive Landscape

Key players operating in Turkey's data center market are Sparkle, Equinix, Telehouse Istanbul, Amazon Web Services, Turkcell, Vodafone, Turk Telekom, Teknotel Telekom, IBM Corporation, Huawei Technologies, and other prominent players.

These major players have adopted various organic and inorganic growth strategies such as mergers & acquisitions, new product launches, expansions, agreements, joint ventures, partnerships, and others to strengthen their position in this market.

Recent Development

• In March 2021, Advanced Micro Devices Inc. unveiled a new data center chip in an effort to overtake Intel Corp., a competitor. The "Milan" data center CPU from the company outperforms Intel's top data center processors at the moment. Both the new chip and its predecessor surpass Intel's counterparts, helping AMD increase its market share and win over clients like Google, a subsidiary of Alphabet Inc. Consequently, by introducing cutting-edge technologies, the corporation is growing its market share.

Scope of the Report

Attributes	Details
Years Considered	Historical data – 2018-2021
	Base Year – 2021
	Estimated Year - 2022
	Forecast – 2022 – 2028
Facts Covered	Revenue in USD Million
Market Coverage	Turkey
Product Service/Segmentation	By Solution, By Type, By End User Industry
Key Players	Sparkle, Equinix, Telehouse Istanbul, Amazon Web Services, Turkcell, Vodafone, Turk Telekom, Teknotel Telekom, IBM Corporation, Huawei Technologies and other prominent players.

 

By Solution

• IT Infrastructure

• General Infrastructure

• Mechanical Infrastructure

• Electrical Infrastructure

• Other Infrastructure

By Type

• Corporate

• Web Hosting

By End User Industry

• Government

• IT & Telecom

• Healthcare

• BFSI

• Others

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Turkey Data Center Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Favorable government policies
         2. Benefits Of Establishing Data Center Facilities
         3. Shift from the on-premises model to cloud
      2. Restraints
         1. Requires Huge Amount of Capital For Investment
      3. Opportunities
         1. Government provides various investment and sales tax incentives
      4. Challenges
         1. Concerns regarding data privacy and security
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Turkey Data Center Market Overview
   1. Market Size & Forecast by Value, 2018–2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Solution
         1. IT Infrastructure
         2. General Infrastructure
         3. Mechanical Infrastructure
         4. Electrical Infrastructure
         5. Other Infrastructure
      2. By Type
         1. Corporate
         2. Web Hosting
      3. By End User Industry
         1. Government
         2. IT & Telecom
         3. Healthcare
         4. BFSI
         5. Others
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships.)
6. Impact of Covid-19 on Turkey Data Center Industry
7. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, SWOT, and Strategic Outlook) **
   1. Sparkle
   2. Equinix
   3. Telehouse Istanbul
   4. Amazon Web Services
   5. Turkcell
   6. Vodafone
   7. Turk Telekom
   8. Teknotel Telekom
   9. IBM Corporation
   10. Huawei Technologies
   11. Other prominent players

 

8. Key Strategic Recommendations

 

9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation

*Financial information in case of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

 

List Of Figures

 

Figure 1        Turkey Data Center Segmentation

Figure 2        Turkey Data Center Market Value Chain Analysis

Figure 3        Company Market Share Analysis, 2021

Figure 4        Turkey Data Center Market Size, By Solution (USD Million), 2018–2028

Figure 5        Turkey Data Center Market Share, By Type, By Value, 2018–2028

Figure 6        Turkey Data Center Market Share, By End User Industry, By Value, 2018–2028

 

List Of Tables

 

Table 1         Turkey Data Center Market Size, By Solution, By Value, 2018–2028

Table 2         Turkey Data Center Market Size, By Type, By Value, 2018–2028

Table 3         Turkey Data Center Market Size, By End User, By Value, 2018–2028

Table 4         Sparkle Company Overview

Table 5         Sparkle Financial Overview

Table 6         Equinix Company Overview

Table 7         Equinix Financial Overview

Table 8         Telehouse Istanbul Company Overview

Table 9         Telehouse Istanbul Financial Overview

Table 10        Amazon Web Services Company Overview

Table 11        Amazon Web Services Financial Overview

Table 12        Turkcell Company Overview

Table 13        Turkcell Financial Overview

Table 14        Vodafone Company Overview

Table 15        Vodafone Financial Overview

Table 16        Turk Telekom Company Overview

Table 17        Turk Telekom Financial Overview

Table 18        Teknotel Telekom Company Overview

Table 19        Teknotel Telekom Financial Overview

Table 20        IBM Corporation Company Overview

Table 21        IBM Corporation Financial Overview

Table 22        Huawei Technologies Company Overview

Table 23        Huawei Technologies Financial Overview