Data Centers in Chengdu
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Chengdu – Gateway to Western China
Executive Summary
Chengdu is the critical digital infrastructure hub for Western China. The market is purpose-built for companies requiring low-latency access to the region's vast population and rapidly expanding technology sector. Deploying in Chengdu provides a strategic advantage for serving inland China, ensuring superior application performance and user experience.
Chengdu: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid national and regional connectivity, with fewer direct international routes than coastal hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramp hubs are in Shanghai and Hong Kong; private extensions are available. |
| Power Cost | US$0.08/kWh – as of Q2 2025 | Competitive pricing helps manage operational costs for high-density compute. |
| Disaster Risk | Low (3/10) – as of September 2025 | Primary risks are seismic activity and river flooding, mitigated by modern infrastructure. |
| Tax Incentives | No | No specific data center incentives are currently offered by the government. |
| Sales Tax | 13% VAT – as of September 2025 | Standard rate, with reduced rates of 9% and 6% for certain goods. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As of September 2025, Chengdu provides access to 1 primary network provider in its carrier-neutral facilities. The market is dominated by the major national carriers, ensuring reliable connectivity throughout mainland China.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Chengdu as of September 2025. Businesses connect to cloud providers by establishing private network links to major interconnection hubs such as Shanghai, Beijing, or Hong Kong.
Internet Exchange Points (IXPs): Public peering is limited within Chengdu. Most traffic exchange occurs privately between carriers or is routed through the major national IXPs located in China's coastal economic centers.
Bare Metal: Bare metal server options are available in the region, providing dedicated compute resources for performance-sensitive applications. Providers such as Hivelocity can serve deployments in the broader Asia-Pacific market.
Power Analysis
Average Cost Of Power: Industrial electricity is priced at approximately US$0.08/kWh, as of Q2 2025. This competitive rate makes Chengdu an attractive location for managing the operational expenses of large-scale and high-density deployments.
Power Grid Reliability: The power grid serving Chengdu's primary technology zones is well-engineered and reliable. Data centers are supported by a national energy mix that includes significant fossil fuel, hydroelectric, and renewable sources, with modern facilities offering redundant substation feeds.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Chengdu are strategically located to serve the Chengdu High-tech Industrial Development Zone. This proximity offers low-latency connectivity to companies in the finance, manufacturing, software, and biomedical sectors.
Regional Market Reach: Chengdu is the premier gateway to China's western region, home to hundreds of millions of people. A colocation presence here dramatically improves application performance for users across Sichuan province and neighboring territories.
Tax Advantage For Data Centers: There are currently no tax incentives specifically targeting data center construction or operation. Broader government policies, however, aim to encourage technology investment and economic development throughout Western China.
Natural Disaster Risk
Chengdu has a low overall disaster risk profile, with an INFORM score of 3 out of 10 as of September 2025. While the general risk is minimal, operators should account for specific regional hazards.
The most significant natural risks for the area include:
- River Flood: Score of 9.3
- Earthquake: Score of 6.7
- Drought: Score of 4.6
Modern data centers in the region are constructed to high seismic and flood mitigation standards to ensure operational uptime. Risks from tsunami and coastal flooding are not applicable due to the city's inland location.
