The rapid advancement of artificial intelligence technologies continues to elevate the strategic importance of data center infrastructure. In this context, the Executive Order signed by U.S. President Joe Biden on January 14, 2025, provides valuable insights when compared to Türkiye’s current situation and industry expectations, offering significant lessons for developing our national policies in this field.

Global Context and Market Dynamics for Data Center

The demand for data center infrastructure driven by AI technologies has reached unprecedented levels. Industry research projects that the training and implementation of AI models will create a market worth $76 billion by 2028. To put this figure in perspective, it exceeds twice the annual operating costs of Amazon Web Services (AWS), one of the world’s largest cloud service providers.

Storage capacity trends are equally striking. Data center storage capacity is expected to grow from 10.1 zettabytes in 2023 to 21.0 zettabytes by 2027, with a compound annual growth rate of 18.5%. This expansion will also drive increased demand for computing power, with Hyperscale Data Centers projected to increase their rack density by 7.8% annually through 2027.

The U.S. Strategic Approach

The new U.S. strategy positions data center infrastructure as a fundamental component of national security and economic competitiveness. The Executive Order introduces innovative regulations in four key areas:

Strategic Use of Federal Resources

The Order authorizes the Departments of Defense and Energy to lease federal lands for private sector development of gigawatt-scale data centers. Site selection will prioritize access to high-capacity transmission infrastructure while minimizing environmental impact. Land allocation will occur through a competitive process, with all costs borne by the private sector.

Energy Infrastructure and Sustainability

One of the most significant requirements for data center operators is the deployment of new clean energy sources to meet their facilities’ electricity needs. This includes:

– Expedited permitting processes for geothermal energy projects,

– Promotion of distributed energy resources,

– Regulations for safe and responsible nuclear energy utilization,

– Facilitation and modernization of grid connections.

Permitting and Licensing Processes

The Order establishes accelerated permitting processes for AI infrastructure on federal sites, including streamlined environmental impact assessments and “categorical exclusions” to optimize bureaucratic procedures, while maintaining environmental protection principles.

Economic and Social Safeguards

The regulation includes important provisions to balance the economic and social impacts of infrastructure investments:

– Protective measures to prevent increases in consumer electricity prices,

– Support for domestic semiconductor production,

– Labor rights and fair wage policies,

– Guaranteed access for small businesses and startups.

Turkey’s Current Situation and Comparative Assessment

Türkiye’s policy framework for data center infrastructure is shaped by objectives outlined in the 2025 Presidential Annual Program. However, significant gaps exist between policy goals and implementation.

Policy Framework and Implementation Challenges

Two key objectives stand out in the 2025 Program:

– Establishment and operation of Internet Exchange Points (IXPs),

– Development of security and service delivery standards for data centers.

Despite these objectives appearing in programs since 2019, concrete progress remains limited. The Information and Communication Technologies Authority’s (BTK) failure to complete planned Internet Exchange Infrastructure work by 2021 and its subsequent removal from work plans raises concerns about policy continuity.

Institutional Structure and Coordination Challenges

While the U.S. manages its process through two departments, Türkiye’s approach involves five different institutions (Ministry of Industry and Technology, Ministry of Transport and Infrastructure, Presidency’s Digital Transformation Office, BTK, and TSE), leading to coordination difficulties that result in:

– Extended decision-making processes,

– Authority and responsibility confusion,

– Reduced implementation effectiveness.

Infrastructure Development and Energy Policies

In contrast to the U.S.’s clean energy-focused approach, Türkiye lacks a comprehensive strategy for data centers’ energy needs, particularly in

– Renewable energy integration,

– Grid modernization,

– Energy efficiency standards.

Investment Incentives and Financing

The U.S. model, based on private sector financing with strategic use of public resources, could serve as an example for Türkiye. This might include:

– Opening public lands for data center investments,

– New models for infrastructure investment financing,

– Support mechanisms for the domestic technology ecosystem.

Sector Perspectives and Industry Demands

In Türkiye, industry representatives, particularly TELKODER, are calling for comprehensive regulations. Their key demands include:

Regulatory Framework

The sector urgently needs the enactment of the “Draft Law on Support and Measures for Development of Data Center, Cloud Computing, and Platform Services Sectors,” which has been prepared by the Presidency’s Digital Transformation Office and forwarded to the Ministry of Industry and Technology. The draft law aims to create a supportive environment for industry growth while ensuring appropriate oversight.

Development Incentives

The industry seeks revisions to the Centers of Attraction Program, specifically:

– Removal of geographical restrictions that currently limit development options,

– Elimination of white space limitations that constrain facility planning,

– Extension of support mechanisms to include domestic cloud service providers offering IaaS, PaaS, and SaaS solutions.

Recommendations and Strategic Roadmap

A comprehensive strategy is essential for developing Türkiye’s data center infrastructure and enhancing its competitiveness in AI technologies. Drawing lessons from the U.S. approach, several strategic steps emerge as priorities:

Strategic Planning and Vision

Türkiye needs to develop a long-term, holistic data center strategy that:

– Clearly defines authority and responsibilities currently dispersed across institutions

– Sets concrete timelines for achieving specific objectives

– Establishes frameworks for efficient resource utilization

– Incorporates input from industry stakeholders and international best practices

Governance Model

To strengthen inter-institutional coordination, Türkiye should establish a new governance model that:

– Creates a single coordination mechanism overseeing data center policies,

– Enables regular meetings and swift decision-making,

– Provides a platform for ongoing private sector consultation,

– Streamlines communication between different government entities.

Infrastructure Development

Priority should be given to:

– Revitalizing the Internet Exchange Points project with clear timelines,

– Developing comprehensive plans for energy infrastructure modernization,

– Creating incentive mechanisms for renewable energy integration,

– Establishing clear technical standards aligned with international practices.

Investment Framework

A restructured incentive system should:

– Attract private sector investment while ensuring efficient use of public resources,

– Support domestic technology production,

– Encourage SME participation in the data center ecosystem,

– Leverage public land assets strategically, following the U.S. model.

International Cooperation

The strategy should emphasize:

– Preparation for participation in U.S.-led trusted data center network initiatives,

– Development of mechanisms for technology transfer and know-how sharing,

– Exploration of regional cooperation opportunities,

– Leveraging Türkiye’s geographic advantages in the global data center market.

Implementation and Monitoring

Success requires robust implementation mechanisms including:

– Regular monitoring and evaluation systems,

– Clear performance indicators,

– Systematic tracking of progress toward objectives,

– Flexibility to update strategic approaches as needed,

– Transparency and accountability measures to maintain stakeholder trust.

Conclusion

This comprehensive approach provides a solid foundation for developing Türkiye’s data center infrastructure and enhancing its competitiveness in AI technologies. However, success depends on:

– Coordinated effort from all stakeholders,

– Efficient resource utilization,

– Adoption of a long-term vision,

– Commitment to implementation

– Regular assessment and adaptation of strategies.

By following this roadmap while maintaining flexibility to adapt to changing technological and market conditions, Türkiye can strengthen its position in the global data center and AI infrastructure landscape.

This transformation is not just about technological advancement; it represents a strategic opportunity to enhance Türkiye’s role in the global digital economy. With proper planning and execution, Türkiye can leverage its advantages to become a significant player in the international data center market while supporting its domestic digital transformation objectives.