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.
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Attribute
|
Details
|
|
Market
Size Value in 2022
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1,181.06
million
|
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Revenue
Forecast in 2028
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1,795.43
million
|
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Growth
Rate
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7.65%
|
|
Base
Year
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2022
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|
Historical
Years
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2018 –
2021
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Estimated
Year
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2023
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Forecast
Period
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2024
– 2028
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|
Quantitative
Units
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Revenue in USD
Billion and CAGR for 2018-2022 and 2023E-2028F
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|
Report
Coverage
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Revenue
forecast, company share, competitive landscape, growth factors, and trends
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|
Segments
Covered
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Solution
Type
End User
Industry
Region
|
|
Regional
Scope
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Marmara Region, Central Anatolia, Aegean Region, Mediterranean
Region, Black Sea Region, South-Eastern Anatolia Region, Eastern Anatolia
Region
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|
Key
Companies Profiled
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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
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|
Customization
Scope
|
10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
|
|
Pricing
and Purchase Options
|
Avail of
customized purchase options to meet your exact research needs. Explore purchase options
|
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Delivery
Format
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PDF and Excel through
Email (We can also provide the editable version of the report in PPT/pdf
format on special request)
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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:
- 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).