Fueling Turkiye’s Digital Future- How Nuclear Energy is Powering AI and Data Centers
Türkiye stands at the intersection of two major developments—artificial intelligence and nuclear energy—moving steadily toward digital growth and energy security. The country’s National Artificial Intelligence Strategy is driving fast growth in the ICT sector, and the demand for data centers is rising across the nation. As this digital expansion continues, a pressing question arises: How will Türkiye ensure a reliable and steady power supply for its AI and data center industries? With a target of 20 GW of nuclear capacity by 2050 and growing interest in Small Modular Reactors (SMRs), Türkiye is turning to nuclear energy as a practical solution to meet future power needs and support its digital goals.
AI Landscape of Türkiye
The Republic of Türkiye embodies great market potential for disruptive technologies, including artificial intelligence (AI), machine learning and big data. In 2022, the Information and Communication Technologies (ICT) market in Türkiye surpassed USD 24.7 billion, with an average growth of 25.2% in the past five years. Türkiye's digital transformation is anchored by its National Artificial Intelligence Strategy (NAIS) 2021-2025. Türkiye's digital transformation is anchored by its National Artificial Intelligence Strategy (NAIS) 2021-2025. This comprehensive plan aims to significantly elevate AI's contribution to the national GDP to 5% and boost AI-related employment to 50,000 people by 2025. It will be ensured that Türkiye ranks among the top 20 countries in international AI indices. The strategy emphasizes critical areas such as fostering quality data, developing advanced skills, and building robust technical infrastructure, with ongoing initiatives to promote AI adoption across various sectors. The government's adaptive and forward-thinking approach is further evidenced by the forthcoming 2026-2030 AI Action Plan , which signals a continuous commitment to evolving AI development and policy. This sustained governmental focus is a crucial factor for investors, as it suggests that the regulatory environment will likely remain responsive to rapid technological advancements, thereby reducing long-term market uncertainties.
Data Center Market of Türkiye
Türkiye’s data center market is on a strong growth trajectory, valued at USD 471 million in 2023 and expected to reach USD 688 million by 2029, reflecting a Compound Annual Growth Rate (CAGR) of 6.52%. Istanbul remains the leading hub, accounting for approximately 65% of the market with around 20 third-party data center facilities. Other key cities such as Ankara and Izmir are also attracting investments, contributing to the sector’s nationwide expansion.
The rollout of 5G services is expected to significantly increase data traffic, further driving demand for data infrastructure. Major telecom providers like Vodafone Türkiye, Turk Telekom, and Turkcell are central to this expansion. At the same time, the rise of smart city initiatives is contributing to the growing need for advanced digital infrastructure.
International players, including EDGNEX Data Centres by DAMAC and EdgeConneX, are entering the market—often through joint ventures with local partners—signaling growing global interest in Türkiye’s digital economy. Despite its relatively modest size today, the market shows strong fundamentals and considerable room for growth, especially as AI-related workloads intensify the demand for computing and storage capacity.
The current concentration of data centers in Istanbul highlights the efficiency of existing infrastructure but also underscores the need for regional expansion. Developing new data center hubs across the country would not only ease the load on Istanbul but also align with Türkiye’s “Local Development Initiative Program,” aimed at boosting economic activity and digital resilience nationwide.
The Energy Demand Challenge
The burgeoning AI and data center sectors present a significant energy challenge. According to SentiSight.ai, global power demand from AI data centers is projected to soar to 68 GW by 2027—almost doubling the total data center capacity seen in 2022. By 2030, this demand could surge to 327 GW, rivaling the entire power capacity of major industrialized nations. Individual AI training runs alone may require up to 1 GW at a single site by 2028, and could reach an astonishing 8 GW—comparable to eight nuclear reactors—by 2030 if current compute scaling trends persist. This rapid growth will place immense strain on existing grid infrastructure. Goldman Sachs Research projects that global data center power demand will surge by 165% by 2030 compared to 2023.
For Türkiye, whose current energy mix relies heavily on imported fossil fuels, this escalating energy demand transforms from merely an environmental or grid stability issue into a critical national security and economic imperative. Meeting this surging demand with conventional sources would exacerbate its trade deficit and geopolitical vulnerabilities, elevating the development of domestic nuclear power to a strategic necessity for long-term energy security and economic resilience.
Powering the Future: Türkiye's Nuclear Energy Programs
Long-Term Nuclear Strategy & Capacity
Türkiye is embarking on a determined nuclear energy program, targeting 20 GW of nuclear capacity by 2050. This represents a significant undertaking for a nation with no currently operational commercial nuclear reactors. This long-term vision is directly aligned with Türkiye's broader 2053 net-zero emissions target. The 20 GW by 2050 target, starting from a zero-operational base, reflects a "leapfrog" strategy driven by strong political will. This suggests a potentially streamlined regulatory environment and robust government backing for nuclear projects, which can be highly attractive to investors seeking consistent, high-level prioritization of energy infrastructure. The dual imperative of enhancing energy security—by reducing fossil fuel import dependency —and achieving decarbonization makes nuclear energy a non-negotiable strategic priority for Türkiye, ensuring sustained government support for these projects, insulating them from short-term political or market fluctuations.
Major Projects & SMRs
Türkiye's nuclear expansion is multifaceted, encompassing both large-scale reactors and SMRs. The Akkuyu Nuclear Power Plant (4.8 GW, four VVER-1200 reactors), a collaboration with Russia's Rosatom, is nearing completion, with Unit 1 expected online by 2026. Active plans are also underway for a second plant at Sinop (4.8 GW, with Russia as potential partner) and a third at Thrace (5.6 GW, with China's State Power Investment Corporation (SPIC) and CAP1400 reactors), aiming to collectively add another 10 GW of capacity. Türkiye's multi-vendor strategy, engaging partners from Russia, potentially China, South Korea etc. reflects a pragmatic approach to technology acquisition and risk diversification, fostering a competitive environment for international nuclear technology providers.
Crucially, Türkiye also targets 5 GW from SMRs by 2050, having unveiled plans for a nationally designed SMR and a pioneering nuclear technopark in March 2025. Ankara is actively fostering international collaborations to accelerate its SMR ambitions. Memoranda of Understanding and discussions have been initiated with leading SMR developers from the United States, the United Kingdom, and other nations. Companies like Westinghouse and Rolls-Royce are exploring opportunities to deploy their innovative designs in the Turkish market. The estimated value of Türkiye's SMR market, projected to be between $10 billion and $30 billion by 2050, is attracting significant international attention.
The Symbiotic Relationship: Nuclear Energy for Digital Infrastructure
Nuclear as a Baseload Solution
AI data centers require constant, clean, and highly reliable baseload electricity to operate around the clock. Nuclear power uniquely provides 24/7 carbon-free power with exceptionally high capacity factors, often exceeding 92.5% , a significant advantage over intermittent renewables. Its high energy density means a single 1 GW nuclear plant could power multiple large data centers. The inherent stability and baseload nature of nuclear power directly addresses the critical "uptime" and "reliability" requirements of hyperscale data centers, which often demand 99.999% uptime. This positions nuclear as a superior and complementary energy partner for AI infrastructure, reducing the need for extensive battery storage or fossil fuel backup often required by intermittent renewables.
SMRs and Co-location Benefits
SMRs with their compact design allows for co-location with data centers, which can significantly reduce grid stress and minimize transmission losses. While full-scale commercialization is still emerging globally, with first reactors likely coming online post-2030 , major tech giants like Amazon, Google, Microsoft, and Meta are already actively exploring and securing SMR partnerships. Türkiye's SMR adoption initiative strategically positions the country to capitalize on this growing global trend. This could enable Türkiye to become a regional leader in deploying this specific, scalable, and carbon-free energy solution, attracting tech companies seeking on-site power generation. The concept of co-locating nuclear plants with data centers offers a dual benefit: it not only alleviates strain on the national grid and reduces transmission costs but also allows for excess nuclear power to be fed back into the grid , enhancing overall energy system efficiency and resilience.
Therefore, Türkiye's proactive stance in integrating its AI and data center ambitions with a robust nuclear energy program presents a unique and compelling investment landscape. By prioritizing stable, carbon-free baseload power from both large-scale reactors and innovative SMRs, and reinforcing this with a supportive regulatory environment and a strong push for indigenous technological development, Türkiye is laying the groundwork for a resilient and competitive digital future. Adding further momentum to this direction, the upcoming 3rd edition of the Türkiye Nuclear Business Platform (TNBP) 2025 will bring together policymakers, industry leaders, and investors. As the country’s premier nuclear energy forum, TNBP 2025 will serve as a central platform for high-level dialogue, strategic partnership-building, and identifying actionable investment opportunities within Türkiye’s evolving nuclear landscape. For investors looking at long-term growth in a dynamic emerging market, Türkiye offers both readiness and potential.
