Turkey & Eurasia Business — 2026-06-05
Big Tech continues betting on Türkiye with major cloud infrastructure investments, while manufacturing stabilization signals economic recovery. The OECD warns of slower growth ahead despite manufacturing PMI reaching its highest level since March 2024.
Turkey & Eurasia Business — 2026-06-05
Key Highlights
Cloud Giants Accelerate Infrastructure Investments
Amazon Web Services (AWS) has joined Google Cloud in major commitments to Türkiye, building on Google's $3 billion investment announced in November 2025 through partnership with Turkcell. This signals intensifying competition among global tech leaders to establish data center and cloud computing hubs in the region.
Manufacturing Shows Signs of Stabilization
Türkiye's manufacturing Purchasing Managers Index (PMI) has reached its highest level since March 2024, indicating near-term stabilization in the industrial sector after months of volatility. This positive trend reflects improving production conditions and business confidence.
OECD Forecasts Slower Growth Despite Manufacturing Gains
The Organisation for Economic Co-operation and Development (OECD) has cautioned that Türkiye faces slower growth ahead, with higher energy prices and Middle East tensions potentially weighing on domestic demand. However, inflation is expected to ease below 20%, marking progress on the central bank's price stability objectives.
Turkish Lira Weakened Against Dollar Over Past Year
From May 2025 to May 2026, the Turkish Lira depreciated by 14.81% relative to the US dollar, reflecting ongoing currency volatility and macroeconomic pressures. Energy import dependency remains a structural vulnerability for the economy despite improving current account balances.
Analysis
The most significant business development this week is the acceleration of global cloud infrastructure investment in Türkiye. AWS's entry into the Turkish market—following Google Cloud's $3 billion commitment—represents a structural shift in how international tech companies view the region. This competition for cloud dominance signals confidence in Türkiye's digital future and positions Istanbul as a critical hub for data processing, AI services, and enterprise cloud solutions across Europe and the Middle East. The investments promise not just capital inflows but technology transfer and ecosystem development.
However, this optimism must be tempered by OECD warnings. While manufacturing PMI gains are encouraging, broader economic headwinds persist. Slower growth forecasts combined with 14.81% lira depreciation over the past year underscore the tension between sectoral strength and macroeconomic fragility. Companies expanding in Türkiye must navigate currency volatility and geopolitical risks, even as technology giants make long-term bets on the country's infrastructure potential.
What to Watch
Currency and Inflation Trends: Monitor whether inflation actually breaks below 20% as OECD projects. Lira stability will be critical for foreign investors' profit repatriation and for competitive advantages in manufacturing exports.
Cloud Infrastructure Timeline: Track AWS and Google deployment schedules. Major data centers typically attract secondary investments in edge computing, cybersecurity, and software development services—watch for startup funding announcements tied to these projects.
Energy Market Dynamics: Middle East tensions and global oil prices directly affect Türkiye's import bills and current account balance. Any shift in energy costs will reshape growth forecasts and corporate investment returns.
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