Data Center Regions and Economic Development: Implications Derived From Economic Analysis

The amount of data generated worldwide has reached unprecedented levels, and its rate of growth continues to increase exponentially. Brought about by rapid advances in information technologies, as well as changes in lifestyles and business strategies, this explosion in the quantity of data has given impetus to a fast-growing demand for data storage, which, in turn, has paved the way for large-scale data centers. This article addresses the potential economic impact of the construction of a “data center region” in a developing country, using as a case study a development project in Konya, Turkey. The core focus of the analysis is on whether such a data center region could create positive spillovers that trigger further development in a developing region.