Microsoft recently announced plans to open its first data centers in the Middle East in 2019. Amazon will open its first data center region in the Middle East by early 2019, with three availability zones planned. German software giant SAP has said that it anticipates significant new business in the Middle East and is launching a “cloud hub” in the region.
Analysts say that organizations in the Middle East have been relatively slow to adopt cloud services, preferring instead to invest in on-premises solutions. This has led to pent up demand as these organizations seek to tap the benefits of the cloud.
As a result, MarketsandMarkets expects the Middle East cloud infrastructure services market to see a compound annual growth rate of 27 percent, reaching $8.79 billion by 2022. Increasing use of cloud-dependent technologies and business continuity requirements are expected to fuel the growth of cloud infrastructure services in the region.
A recent report from Arizton Advisory and Intelligence notes that the Middle East is expected to see some of the highest growth in data center construction over the next few years. In addition to hyperscale data centers by organizations such as Facebook, Google, Amazon and Microsoft, new facilities are being constructed by colocation providers.
Turkey is uniquely positioned to capitalize on this growth. Straddling Europe and Asia Minor, Turkey has strong cultural and economic ties to both Europe and the Middle East, and a flourishing IT and telecom sector. Furthermore, Turkish businesses are expanding their technology infrastructures to become more competitive in today’s market, and Turkish regulations require that client data be stored locally. This is creating strong demand for data center resources within the country.
Istanbul is a key traffic route for submarine cables between Europe, Asia and Africa. These cable systems enable the rapid growth of cloud and online services by providing cost-efficient, high-speed data delivery. They are increasingly important for industries that rely on low-latency connectivity, many of which already use Istanbul as a regional hub.
Data center giant Equinix has seen Turkey’s potential, acquiring Zenium’s Istanbul One data center in October 2017. Equinix IS2 is a state-of-the-art Tier III data center, certified to the highest industry standards and featuring high levels of security and resiliency. Strategically located near Istanbul’s International Financial Centre, IS2 has ample space for continued expansion and power density growth.
Rahi Systems recognizes the strategic importance of Turkey in the data center market. In 2016 we launched our operations in the Middle East with the opening of an office in Turkey. The location was selected to better serve our global customers and partners and ensure prompt and cost-effective service delivery in the region.
Rahi is a Gold Sponsor of the fifth annual Data Center Turkiye 2018, to be held May 8 at the Wyndham Grand Levant Istanbul Hotel. This year’s event is a collaborative effort between the Association of Information Technology Infrastructure Companies and the Building Industry Consulting Service Industry. The theme is “the future of data centers and hybrid cloud structure.” If you plan to attend this important event, we hope you’ll stop by to meet our Rahi team.