Data Centers in Turkiye

Turkiye – Strategic Digital Bridge for Europe & Asia

Executive Summary

Turkiye provides a critical data center location for enterprises targeting the intersection of Europe, the Middle East, and Central Asia. Its extensive subsea cable connectivity and growing digital ecosystem offer a strategic advantage for businesses that require low-latency access to these diverse and expanding markets, ensuring resilient application performance and reach.

Turkiye: At A Glance

Network & Connectivity Ecosystem

Turkiye's network environment benefits from its unique geographical position. The country serves as a major transit hub with numerous terrestrial and subsea cable systems landing on its shores.

Carrier Density & Carrier Neutrality: The market includes over 7 unique network carriers, as of September 2025. Carrier-neutral facilities in Istanbul provide diverse options for interconnection and resilience.

Direct Cloud On-Ramps: Over 1 direct cloud on-ramp is available, enabling dedicated access to at least 1 major cloud region as of September 2025. This includes a local on-ramp for AWS, allowing businesses to build reliable hybrid cloud architectures.

Internet Exchange Points (IXPs): The primary exchange is TR-IX, which facilitates efficient local traffic peering, reducing latency for domestic users. Most international peering occurs directly within carrier-neutral data centers.

Bare Metal: Bare metal cloud solutions are available from multiple providers. This allows businesses to deploy dedicated, high-performance computing without managing their own hardware. Options include providers like Hivelocity and phoenixNAP.

Power Analysis

Average Cost Of Power: Industrial electricity costs are estimated between ₺2.75–₺3.75/kWh, as of September 2025. This price point is a key factor in total operational cost calculations for large-scale deployments. The grid mix is approximately 60% fossil fuels and 40% renewables, with hydropower being the largest renewable source.

Power Grid Reliability: The power grid in major metropolitan areas like Istanbul is well-engineered to support critical data center operations. Facilities are typically fed by multiple substations, providing the redundancy needed to maintain high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Turkiye are concentrated around Istanbul, providing low-latency connectivity to the country's primary financial, commercial, and media industries. This proximity is essential for financial trading, content delivery, and enterprise applications.

Regional Market Reach: From Istanbul, a single data center deployment can effectively serve a vast region spanning Southeastern Europe, the Caucasus, and parts of the Middle East, reaching hundreds of millions of end-users.

Tax Advantage For Data Centers: Turkiye currently offers no specific tax incentives for the digital economy or data center investments. Businesses should plan for standard corporate and value-added tax structures when evaluating the market.

Natural Disaster Risk

Turkiye has a Moderate disaster risk profile, with an overall INFORM Risk score of 5.5 out of 10, as of September 2025. The risk assessment highlights specific geological and climate-related threats that require careful facility planning and disaster recovery strategies.

Key natural hazards include:

• Earthquake: 9.3/10 (Very High)
• River Flood: 6.0/10 (Moderate)
• Tsunami: 5.0/10 (Moderate)
• Coastal Flood: 4.6/10 (Moderate)
• Drought: 2.6/10 (Low)