GA Capital
Turkey — Data Centers
Turkey colossus data center campus — aerial view
GA Capital | Essentials

Turkey Data Center Market

Regulated demand and improving interconnect

Bottom-up inventory, pipeline, power, and connectivity — neutral, source-backed view of Turkey’s DC market

November 2025
GA Capital Research
Essentials

Need to Know

Facts first; consequences embedded below charts

Growth

Colocation revenue guided near ~20% CAGR through 2030; Istanbul primary hub; Ankara/İzmir emerging. Treat all MW/price claims as verified-only.

Connectivity

Multiple subsea landings (Marmaris/Istanbul) and DE‑CIX Istanbul; AWS Direct Connect launched at Equinix IL4 in May 2025.

Power & Climate

Installed capacity ~121.4 GW (Sep 2025); renewables rising. Climate workable with IEC/adiabatic; design for heatwaves; seismic design mandatory.

Executive Summary

Executive Summary — House View

01

Thesis: Steady, regulated-led growth — not hyperscale-led (yet)

Attractive, steady-growth colo market with improving interconnect and rising regulated/hybrid demand; step‑change requires incentives + cable diversity + anchor commitments.

02

Demand: ~20% CAGR through 2030 with finance/public + hybrid cloud

Banking on‑shore rules anchor local hosting; KVKK cross‑border tools ease multinational hybrid; e‑commerce/media/gaming add latency‑sensitive load.

03

Supply: ~110–130 MW installed; ~150+ MW pipeline (Ankara‑weighted)

Istanbul remains interconnect center; Ankara pipeline includes Khazna (up to 100 MW) and Türksat (~21 MVA); İzmir adds Vodafone–EDGNEX program.

04

Connectivity & power: DX@IL4 + DE‑CIX now; KARDESA & TR‑EU backhaul next

Budget for tariff volatility with indexation/PPAs; interconnection timing at 154/380 kV is gating for RFS; market resilience improves with Black Sea route diversification.

05

Risk & design discipline

Climate workable with IEC/adiabatic; engineer for heatwaves; Istanbul↔Ankara active/DR for seismic diversity; keep IT MW vs facility MVA distinct; normalize program vs delivered MW.

Context

Demand Drivers

What pulls capacity and where it goes

Cloud adjacency (DX @ IL4; partner ecosystems)
Regulated workloads (banking on‑shore; public sector)
Enterprise hybrid & SaaS localization (KVKK transfer tooling)
Content/gaming/streaming and fintech latency
Route diversity (KARDESA; TR‑EU backhaul)
Power timing & cost (154/380 kV tie‑ins; indexation/PPAs)

• Drivers inform siting and product mix; verify with account pipeline and sector rules.

Network

Connectivity & Landings

Cable landings, IX presence, and cloud on‑ramps that shape siting

Subsea & Interconnection

Systems landing in Türkiye (examples)
  • SEA‑ME‑WE‑5 — Marmaris (operator in TR: Türk Telekom)
  • MedNautilus — Istanbul landing
  • ITUR — Istanbul landing
  • KAFOS — Istanbul–Varna–Mangalia (Black Sea)
Interconnection
  • DE‑CIX Istanbul (carrier‑ and DC‑neutral exchange)
  • AWS Direct Connect location at Equinix IL4 (10/100 Gbps, MACsec)

• SMW‑5 lists Marmaris (Türkiye) as a landing (Türk Telekom member).

• MedNautilus and ITUR list Istanbul landings; KAFOS connects Istanbul–Varna–Mangalia (Black Sea).

• DE‑CIX operates in Istanbul across multiple enabled sites; AWS Direct Connect opened at Equinix IL4 on 12 May 2025.

Upcoming route diversity (Black Sea)

Black Sea route diversity supports Istanbul/Ankara paths and Izmir adjacency; monitor execution and landing specifics for siting decisions.

• Vodafone announced the Kardesa Black Sea cable (Oct 20, 2025) with planned landings in Bulgaria, Türkiye, Georgia, and Ukraine; first landing targeted in 2027 (Bulgaria).

Power

Power & Energy Context

Capacity, mix, and price context for budgeting

Capacity & Mix

Availability is improving and greening; grid interconnection timelines at 154/380 kV remain a siting critical path.

• Installed capacity reached ~121,418 MW by end‑Sep 2025; 61.6% renewables capacity share.

• 2024 generation shares: coal 34.7%, gas 18.9%, hydro 21.1%, wind 10.4%, solar 8.7%, geothermal 3.1% (Ministry).

• Akkuyu NPP Unit‑1 targets first power in 2025 (Reuters; officials).

Tariffs & Pricing (recent moves)

Budget with indexation/hedging; cross‑check wholesale exposure in contracts vs retail supply. Consider on‑site PV/PPAs where feasible.

• EPDK raised electricity tariffs effective 5 Apr 2025 (residential +25%; industrial +10%); BOTAS raised gas for industry (+20%) and power (+24.2%).

• Business retail benchmark ≈ $0.104/kWh (Mar 2025). Day‑ahead wholesale PTF averaged ~2,070–2,520 TL/MWh across 2024–3Q24; FX drives USD/kWh conversion.

Design

Climate & Cooling

Thermal design ranges and extreme‑heat resilience

Operating envelope

Use IEC/adiabatic strategies with containment; expect higher summer PUE than Nordics; validate wet‑bulb and water strategy (WUE) per site.

• Istanbul typical July highs ~28–30 °C; inland Ankara cooler/drier — increases free/partial‑free cooling hours vs coast.

• Turkey set an all‑time national record of 50.5 °C (Silopi) on 25 Jul 2025; engineer for heatwaves, not means.

Risk

Seismic & Siting Notes

Marmara exposure and code context

Seismic probability & code

Prioritize modern stock, soil data, and isolation options; Istanbul clusters carry elevated seismic hazard vs Ankara.

• USGS studies estimate ~40–60% probability of M≥7 event impacting Istanbul over 30 years (time‑dependent models).

• Apply TBDY‑2018 design and consider seismic isolation for critical facilities; verify soil class/liquefaction per parcel.

Seismic risk map (AFAD)

Türkiye seismic hazard map (AFAD)

• AFAD national seismic hazard map — for siting context only; perform parcel‑level geotech before decisions.

Policy

Regulatory Snapshot

KVKK cross-border tools; sectoral localization for banks

KVKK & Cross-Border Transfers (2024–25)

Practical: provide KVKK‑aligned standard contract templates and BCR language in your onboarding to ease multinational diligence.

• Türkiye is not in the EU/EEA; GDPR does not apply by law. KVKK (Law No. 6698) governs personal data.

• Amendments and secondary rules in mid‑2024 added GDPR‑style transfer tools: adequacy decisions, standard contracts (SCC‑like), and BCRs; 2025 guidance explains usage.

Banking (BRSA) — On‑shore Requirement

Play: target finance/public‑sector and hybrid adjacency (DX@IL4 + DE‑CIX). Offer Istanbul↔Ankara active/DR pairs for seismic diversity.

• BRSA rules require banks’ primary (and related outsourced/cloud) systems to be located in Türkiye. This materially anchors in‑country demand.

Regional

Istanbul vs Athens vs Crete

Cable diversity, IX/cloud adjacency, incentives, risk

Side‑by‑side (qualitative)

PlaceCable diversity (within ~100 km)IX / Cloud adjacencyIncentives / PolicyHeadline risks
IstanbulITUR, MedNautilus, KAFOS; backhaul to SMW‑5 (Marmaris)DE‑CIX live; AWS Direct Connect (IL4)KVKK tooling; sectoral (BRSA) demand; standard investment regimeSeismic (Marmara); tariff volatility; EU jurisdiction gap
AthensMed systems to GR; BlueMed paths to EU backbonesCloud regions announced (MS/Google); large campus scalingStrategic investment fast‑track; EU jurisdictionPower siting queues; cost inflation
CreteBlueMed landing; East‑Med route diversityEdge to Athens; hub narrative formingNational push to make Crete a hubEarly‑stage; backhaul dependence to mainland

• Greece has announced cloud regions (Microsoft/Google) and new East‑Med landings (BlueMed in Crete); Türkiye offers strong interconnect (DE‑CIX, DX@IL4) and evolving Black Sea diversity (KARDESA).

City

İzmir — Quick Diligence

Anchor colos vs boutique hosters

Operators and status

OperatorStatusPublished scaleNotesSources
Turkcell İzmir (Menderes/İTOB OSB)LivePurpose‑built Tier III; building ~14,500 m²; ~2,400 m² white space (press); MW N/A publicNational‑scale telco DC; credible anchor in İzmir metro; verify current IT MW and interconnection details.DCD — Turkcell launches İzmir DC
Vodafone Türkiye + EDGNEX (DAMAC) — İzmirAnnouncedProgram ~$100m; up to 6 MW (long‑term projection); phase‑1 target Q1 2025Treat $/MW as program‑level until delivered IT MW at COD disclosed; verify RFS status now.Invest in Türkiye — announcement
Local hosting/ISP facilities (aggregated)LiveBoutique/DC rooms; public MW typically not disclosedExamples include PlusLayer, Alastyr, Inetmar, Netdirekt, Cenuta, Sağlayıcı, Websahibi, Hostegon. Treat as hosters/edge, not national‑scale neutral colos.Data Center Map — İzmir listings

• Treat boutique hosters as commercial presence, not proof of multi‑MW neutral colo; verify MW and certifications before use.

Market

Operators & Documented Capacity

Documented public figures (IT MW / white space)

OperatorMetroSite/CampusInstalled (IT MW)Published CapacityStatusSources
Equinix — IL2Istanbul (Ümraniye, Dudullu OSB)IL2—12,000 m² white spaceLiveEquinix — acquires Istanbul DC from Zenium (2017), DCD — Equinix acquires Zenium Istanbul One (2017), Equinix — IL2 Istanbul IBX
Equinix — IL4Istanbul (Ümraniye, Dudullu OSB)IL4——LiveEquinix — IL4 Istanbul IBX, DE-CIX — Istanbul
NGN — Star of BosphorusIstanbul (Pendik)——16.0 MW ITLiveNGN — Star of Bosphorus Data Center
RadoreIstanbul (Levent, MetroCity)——3.9 MW ITLiveRadore — Data Center
Telehouse Istanbul (KDDI/Teknotel)Istanbul (Kozyatağı)———LiveTelehouse Istanbul (KDDI/Teknotel)
Türk TelekomIstanbul (Esenyurt, Gayrettepe) + Ankara (Ümitköy)——12,700 m² white spaceLiveTelehouse Istanbul (KDDI/Teknotel)
Turkcell (fleet)Gebze, Ankara, İzmir, Tekirdağ—33.0 MW IT54.0 MW ITLiveTurkcell — Investor Presentation (Jan 2025)
KoçSistemIstanbul——3.3 MW ITLiveUntes — KoçSistem Data Center (Istanbul)

• Totals reflect published figures; treat values as indicative until verified via primary filings or operator pages.

• Avoid mixing facility MVA with IT MW; per‑rack specs are not directly comparable to sitewide MW.

Installed / published capacity (indicative)

33 MW
Turkcell (IT live)
16 MW
NGN SoB (pub.)
3.9 MW
Radore (pub.)
3.3 MW
KoçSistem (pub.)

• Only Turkcell reflects installed IT MW (33) from the Jan 2025 investor deck; other values are operator‑published site figures and may reflect facility or total capacity — treat as indicative / under review.

Supply

Pipeline & Announcements

Staged capacity and program capex (not delivered IT MW unless stated)

Comparability note

• Tip: Do not mix facility MVA with IT MW; label program totals separately from delivered first‑phase MW at COD.

Notable Program

Sponsor/OperatorCityStageCapacityProgram CapexTarget COD
Vodafone Türkiye / EDGNEX (DAMAC) — 50/50 JVİzmir (Aegean Region)AnnouncedUp to 6 MW (program)$100mQ1 2025
Khazna Data CentersAnkara (Başkent OIZ)AnnouncedUp to 100 MW (program)——
TürksatAnkara (near Gölbaşı)Announced21 MVA facility power (initial phase); IT MW TBD—H1 2027 (target launch)

• Implied capex intensity ≈ $16.7M per future MW assuming full 6 MW build; initial delivered MW at COD not disclosed.

• Do not compare program $/MW to realized IT MW benchmarks; harmonize on the same definition before comparison.

Pipeline / program totals (MW)

100 MW
Khazna (program)
21 MW
Türksat (MVA)
6 MW
Vod‑EDGNEX (prog.)

• Values shown as announced program totals. Türksat figure is facility MVA; Vod‑EDGNEX is ‘up to’ program MW; Khazna up to 100 MW. Not directly comparable to delivered IT MW at COD.

Policy

DC‑Relevant Incentives (Peer Snapshot)

What operators can actually bank on

Türkiye — Priority Investments & PBIS/HIT‑30

  • Eligibility: ≥ 3 MW installed power; cloud DC spend ≥ TRY 200m
  • Supports: VAT/customs exemption; tax reduction; social security; interest support; land allocation
  • PBIS/HIT‑30: decree‑driven add‑ons (cashback, energy, capital contribution, etc.)

• Data centers are named Priority Investments with ≥ 3 MW installed power; cloud providers qualify with ≥ TRY 200m DC spend.

• Toolbox: VAT & customs exemption; tax reduction; social‑security support; interest/profit‑share support (capped); land allocation. PBIS/HIT‑30 can add cashback, energy support, capital contribution.

Greece — Fast‑Track & Development Law

  • Fast‑track licensing (many permits ~45 days)
  • Tax stabilization (up to 12y), accelerated depreciation, possible grants

• Fast‑track licensing windows; tax‑rate stabilization up to 12 years; accelerated depreciation; potential subsidies; strategic spatial planning tools.

Thailand — BOI (updated 2025)

  • Up to 8‑year CIT holiday (no cap) for qualifying DCs
  • Import duty exemptions; BOI one‑stop facilitation

• Up to 8‑year CIT exemption; import duty exemptions; 2025 updates add efficiency criteria and strategic packages.

Vietnam — Decision 29 & Telecom Law

  • CIT 9%/30y; 7%/33y; 5%/37y (with exemptions/reductions)
  • Land/water rent relief; large qualifying projects

• Special investment incentives grant deep, long‑tenor CIT holidays with exemptions/reductions; Telecom Law 2023 formalizes “data center services”.

Spain — national + regional mix

  • National R&D/innovation credits; regional land/grid facilitation

• No single national DC holiday; operators combine national R&D credits/loans with regional facilitation and RES PPAs; grid investment rules evolving.

Benchmarks

Peer Comparisons (Indicative)

Installed vs pipeline, on‑ramps, cables, power, regulation

Regional peers (qualitative only)

MarketInstalled (indicative)Pipeline (indicative)On‑ramps / RegionsCablesPower NotesRegulation
Türkiye≈110–130 MW documented colos (indicative)≈150 MW+ (Ankara-heavy; Türksat/Khazna; Vodafone‑EDGNEX İzmir)AWS Direct Connect (IL4); DE‑CIX Istanbul; no hyperscaler regionSMW‑5 (Marmaris), ITUR, KAFOS, MedNautilus; KARDESA (Black Sea, 2027 target)Tariff hikes Apr 2025; greening mix; interconnection timing keySectoral strict (finance) + KVKK transfers; broad consumer internet not blanket‑localized
RomaniaCarrier hotels single‑digit MW per site (e.g., NXDATA‑3 ~5 MW total/3 MW IT)HPC campus planned up to 200 MW (ClusterPower, Dolj)No hyperscaler region; strong carrier‑neutral presence (Bucharest)Terrestrial to EU backbones; Black Sea routes via RO‑BG; no major new subsea hubCompetitive power/PPAs vs Med; EU jurisdictionEU GDPR; localization via sector or contractual needs
BulgariaTelepoint Sofia East ~9 MW; Neterra SDC2 ~2 MW (others 1–2 MW)Incremental; retail/edge focusNo cloud region; Sofia carrier hotels activeTerrestrial to EU; Black Sea paths via BG‑TR‑ROCompetitive pricing; EU jurisdictionEU GDPR
SerbiaIdentified ~12 MW; ~6 MW live (Q4‑2023)Small builds; selective wholesaleNo region; limited on‑ramps; cross‑border adjacencyTerrestrial corridors; no subsea landingsCost‑sensitive; check reliability hedgesNot EU; adequacy/transfer frameworks apply
MoroccoN+ONE Casablanca DC‑II ~4 MW; base small but growingAnnouncements up to 500 MW (Dakhla) — treat as high‑risk until shovel‑readyNo region; emerging carrier‑neutral sitesAtlantic/Mediterranean routes; proximity to IberiaRE growth; policy‑driven frameworksTargeted localization for critical sectors
Thailand≈100–120 MW+ colos (indicative); large campuses in pipeline650 MW+ cited across Bangkok projects (indicative)AWS Region GA (Jan 2025); other cloud regions announcedMultiple SEA cables via Thailand/Malaysia; terrestrial routes to SG/MYBOI approvals; grid additions; price trends vary by tariff classPDPA (since 2022); cross‑border transfer tools (adequacy/SCC‑like/BCR)
Data

Sources