The competition over artificial intelligence data centers is heating up, particularly among the United States, China and the European Union. Beyond billion-dollar investments, regulatory decisions and data economy-focused policies are creating an ecosystem for AI data center investments.
U.S. President-elect Donald Trump this week announced that Emirati billionaire Hussain Sajwani, chair of Dubai developer DAMAC, will invest at least $20 billion in data centers in the United States.
Trump, who had made major arms sales agreement with Saudi Arabia during his first term as U.S. president, is signaling a new era focused on AI data centers. The investment will support the construction of large-scale data centers in the Midwest and Sun Belt regions, aiming to maintain the U.S.’s leadership in technology and AI.
Trump also presented this development as an incentive for foreign business leaders to invest in the U.S. Additionally, Microsoft plans to invest over $80 billion in AI-specific data centers during the 2025 fiscal year, with more than half of this investment expected to be spent on U.S. data centers.
Projects in China, EU
In China, cloud, telecom, and technology companies like Huawei, Alibaba, and Tencent, along with state-owned enterprises such as China Telecom and China Mobile, are also investing in AI data centers. Massive data centers are being built in Hong Kong to compete globally.
The EU plans to establish AI factories in seven countries: Finland, Germany, Greece, Italy, Luxembourg, Spain and Sweden. This initiative represents a total investment of 1.5 billion euros ($1.54 billion), combining national and EU funds. The goal of these factories is to train advanced AI models and develop AI solutions, creating an ecosystem in Europe.
With the increase in AI activities, investments in data centers in Europe have risen by 168% in the past year, with major contributions from tech giants like Amazon, Google and Microsoft.
Race extends to space
AI data centers are forming a new dimension of technological competition, with strategic investments intensifying among countries. The U.S. and China are particularly vying for leadership with large-scale investments. This competition accelerates technological advancements and continuously increases data processing and storage capacity.
Innovative initiatives are also emerging in space-based AI data centers. For instance, Lumen Orbit has secured a $10 million investment to establish AI data centers in space and has partnered with Nvidia.
The EU has published the AI Act to ensure the safe, ethical, and fair use of AI systems, including rules on data quality, transparency, human oversight and accountability.
Top 5 largest AI data centers
- The Citadel Campus (Tahoe Reno, Nevada, U.S.): Recognized as the world’s largest on-premises data center, covering 7.2 million square feet. It is expected to consume 815 MW of energy upon completion.
- China Telecom Data Center (Hong Kong, China): Boasts the world’s largest data center network, covering 10.7 million square feet, offering solutions in CDN, UC, GSM and more.
- China Mobile Data Center (Hong Kong, China): A large data center with a global terrestrial and submarine communication network, spanning 7.7 million square feet.
- CWL1 Data Center (Wales, U.K.): One of Europe’s largest data centers, covering 1.4 million square feet, providing private data solutions and cloud hosting services.
- DuPont Fabros Technology Data Center (Virginia, U.S.): A notable center covering 1.6 million square feet, consisting of 28 sections, each 8,500 square feet in size.
Energy-efficient data centers
One of Türkiye’s leading telecommunications and technology companies, Türk Telekom also continues to accelerate its investments in data centers.
Türk Telekom serves its corporate clients with three data centers located in Istanbul’s Esenyurt and Gayrettepe neighborhoods and Ümitköy in the capital Ankara.
These data centers, with a total of 12,700 square meters of white space, are designed to meet high security and energy efficiency standards.
Notably, the Esenyurt Data Center, launched in 2018 with an investment of TL 130 million, is one of Türkiye’s largest data centers, featuring advanced security technologies and eco-friendly attributes.
Türk Telekom is implementing various projects to enhance energy efficiency in its data centers. For example, new investments utilize high-efficiency IEC cooling solutions, achieving a power ssage effectiveness(PUE) value below 1.15. Additionally, existing data centers are being upgraded with next-generation energy and cooling systems to save energy.
Global cybercrime costs to exceed $10 trillion
Cyberattacks are on the rise, so are their global costs. In 2023, the annual cost reached $8 trillion and it is expected to to have exceeded $9 trillion in 2024. This upward trend is predicted to continue into 2025.
As digitalization spreads, our digital footprint expands, creating numerous new areas of vulnerability. Technological advancements in artificial intelligence, robotics, digital twins, and other fields have strengthened the connection between technology and security vulnerabilities.
The rapid adoption of cloud computing, remote work, and new AI solutions has significantly increased the number of cyberattacks.
In Türkiye alone, there were over 380,000 cyberattacks in the first half of 2024. The increase in cyberattacks is driving up costs both in Türkiye and globally.
Efforts to combat cyberattacks
Efforts to combat cyberattacks are also increasing. Ismet Koyun, founder and CEO of KOBIL, emphasized the importance of having dedicated cybersecurity forces, similar to air, land, and naval forces.
“A country that cannot protect its data cannot protect itself,” Koyun noted. The newly established Cybersecurity Directorate in Türkiye aims to address this need.
Economic impact
Koyun highlighted the growing necessity of cybersecurity, stating, “Security has become a vital need. At KOBIL, we have prioritized security since our inception. Data security is now the most critical issue. Wars are no longer fought with weapons alone; they are fought with information. Protecting data and information must be a priority for every sector.”
He pointed out that cyberattacks in Germany caused $266 billion in damages last year, and Türkiye saw a 54-fold increase in cyberattacks compared to the previous year. The rising costs of cybercrime are a significant economic burden.
If the increase in cyberattacks continues, the global cost is projected to reach $10.5 trillion in 2025.
Decacorn Angels invests in AI-based investment platform Magnus
Decacorn Angels has announced it had invested in Magnus, a platform providing AI-based investment and asset management solutions.
Magnus enables the creation of customized portfolios across various asset classes, including stocks, ETFs, mutual funds, bonds, commodities, and currencies.
Magnus entered the industry in 2022 with AI-driven stock and fund basket management solutions. It has reached a broad user base through strategic collaborations with leading financial institutions in Türkiye.
Over time, Magnus has continuously developed and enhanced its algorithms and products, offering AI-based investment and asset management solutions.
The company stands out with its proprietary AI-supported algorithms, dynamic asset allocation, and customized investment strategies. It provides more comprehensive solutions for professionals and digital asset management projects with its specialized algorithms and strategies and multiasset class support.
Magnus will continue its work with Decacorn Angels, including one of its investors Techventure VC.
Magnus offers global portfolio management with various asset classes and multicurrency support, AI-based strategies and portfolio balancing, backtesting and strategy optimization tools, and personalized investment advice and risk management solutions.
Investment management
Esra Ulaşan, co-founder and CEO of Magnus, said they focus on B2B and B2B2C business models, providing AI-supported fund management, digital asset management, and portfolio optimization services to financial institutions and investors.
“With the investment from Decacorn Angels, our goal is to become the market leader by offering more customized, risk-focused investment solutions to financial institutions and individual investors. In the short-term, we plan to introduce our platform to more corporate users and add new features,” Ulaşan noted.
“Magnus’ primary mission is to transform the investment management approach with AI, achieve sustainable returns, and provide financial freedom by making professional investment management accessible.”
Carbon footprint reduced with refurbished phones
Turkish insurance agency Fibasigorta has teamed up with Yenilio, which renews technological devices, including Apple products, bringing them back into the economy and offering them to customers.
While safeguarding devices against damage, this collaboration also supports reducing users’ carbon footprints.
Fibasigorta provides insurance services for new or existing technological products and, through this partnership, secures renewed Apple phones, tablets, computers, and smart accessories.
With its Full Protection Insurance, Fibasigorta offers advantages in many areas, from screen breakage to liquid damage, battery replacement, and theft, making life easier for users.
Fibasigorta General Manager Erol Öztürkoğlu highlighted that their insurance service for renewed devices allows users to use their renewed devices with peace of mind while also creating a sustainable business model.
“We are taking steps with the future of our world in mind and implementing initiatives that support the circular economy. Hence, we are pleased with our partnership with Yenilio,” Öztürkoğlu said.
According to research by the French Environment and Energy Management Agency, cell phones cause 85.2 kilograms (187.83 pounds) of carbon emissions over their three-year usage periods, he noted. In contrast, refurbished cell phones emit only 7.61 kilograms of carbon when used for two years.
“Considering these data, our partnership with Yenilio not only offers advantageous and comprehensive insurance solutions to our customers but also contributes to reducing environmental impacts and efficiently using resources,” said Öztürkoğlu.
“Owners of renewed devices can use their insured products with peace of mind, while reducing e-waste and their carbon footprint.”
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