Gulf investors play a crucial role in funding the expansion of data centres in Turkey.

• $500m from UAE’s Castle Investments
• Demonstrates worldwide AI growth
• Data centres could empower startups

Turkey’s data centre industry is experiencing a surge of fresh investment that is expected to bolster growth in the nation’s digital economy, primarily fueled by funds from the Arabian Gulf.

Recently, Turkish e-commerce platform Trendyol announced its collaboration with the UAE’s Castle Investments, led by Gulf Data Hub founder Tarek Al Ashram, to establish a data centre in Ankara, the capital of Turkey.

The first phase of the project, slated for completion next year, will feature nearly 10 megawatts of capacity, expanding to 48MW as the various elements of the $500 million venture are finalized.

Approximately 60% of this capacity will be allocated to Trendyol, with the remainder available for other clients, as stated by Çağlayan Çetin, Trendyol’s president.

“The Ankara Data Centre project will significantly enhance the quality of service we provide to our rapidly expanding local and international customer base, and it further illustrates our dedication to investing in Turkey and our confidence in its robust digital ecosystem,” Çetin remarked.

This recent influx of investment in Turkish data centres, along with other initiatives, underscores global advancements in artificial intelligence (AI) and enhanced data security, according to Gökhan Say, CEO of CyBridge Capital, a company focused on early-stage investments and exit strategies.

“The demand from enterprises and service providers alike is exceptionally high on a global scale,” Say told AGBI. “The number of companies developing essential infrastructure in Turkey is increasing daily, both for in-house use and as service providers.”

An additional Gulf entity showing commitment to Turkey’s data centre growth is Dubai Islamic Bank, which revealed last week that it is lending Turkish telecom provider Turkcell $150 million to upgrade the company’s infrastructure and data centre capabilities.

This loan follows a $113 million provision to Turkcell by Emirates NBD bank in mid-May.

Khazna Data Centres, headquartered in Dubai, also announced plans to invest in the Ankara data hub.

Last month, the company unveiled intentions to create an AI centre in the capital, along with a facility capable of accommodating up to 100MW of computing capacity.

Expanding the network of data centres in Turkey is expected to stimulate growth in the nation’s start-up ecosystem, according to Say, creating a cost-efficient link to the global technology landscape essential for scaling beyond the initial growth stage.

“The influx of new players in the Turkish market leads to increased investments, fostering an environment conducive to start-up development,” Say explained.

“Having access to the necessary technologies within their own country allows these start-ups to forge global connections more rapidly.”