Data Centers in Chongqing
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Chongqing – Gateway to Inland China
Executive Summary
Chongqing is a critical digital hub for businesses targeting Western China's vast inland market. Its growing data center ecosystem provides the necessary infrastructure to deploy low-latency applications and services for one of the world's largest urban populations. This market is ideal for companies focused on manufacturing, logistics, and regional cloud service delivery.
Chongqing: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong domestic connectivity, with developing international links. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are Beijing and Shanghai; private network extensions are common. |
| Power Cost | US$0.08/kWh – as of Q2 2025 | Competitive pricing helps manage high-density workload operational expenses. |
| Disaster Risk | Low (3/10) – as of September 2025 | Low overall exposure to significant natural disasters. |
| Tax Incentives | No – as of September 2025 | No specific data center incentives are currently offered. |
| Sales Tax | 13% VAT (Standard) – as of September 2025 | Reductions to 9% or 6% apply to certain goods and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market features 2 providers operating 3 data centers, as of September 2025. While carrier density is still developing, carrier-neutral facilities provide access to key national and regional networks necessary for operations in Western China.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Chongqing, as of September 2025. Businesses require private network extensions or dedicated circuits to connect directly to cloud regions in major hubs like Shanghai or Beijing.
Internet Exchange Points (IXPs): Public peering is limited within the city. Most traffic exchange occurs privately between carriers or is routed through major national exchange points in China's primary interconnection markets.
Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-intensive workloads. Providers like Hivelocity offer solutions in the broader Asia-Pacific region that can serve Chinese markets.
Power Analysis
Average Cost Of Power: Industrial power is priced at approximately US$0.08/kWh, as of Q2 2025. This competitive rate makes Chongqing a cost-effective location for running compute-heavy infrastructure. The grid mix is dominated by fossil fuels (~65%), primarily coal, with a significant contribution from renewables (~30%), especially hydropower.
Power Grid Reliability: As a major municipality, Chongqing's power infrastructure is well-engineered and reliable. Data centers are supported by redundant power feeds from multiple substations, ensuring high levels of uptime for critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Chongqing are positioned to serve the city's significant industrial and manufacturing base, including its advanced electronics, automotive, and technology sectors. Proximity enables low-latency connectivity for factory automation, IoT, and supply chain management.
Regional Market Reach: Chongqing is a strategic anchor for reaching over 30 million people in the municipality and the broader population of Sichuan province and Western China. It serves as an effective distribution point for digital services across this economically significant region.
Tax Advantage For Data Centers: China does not currently offer specific national tax incentives for data center construction or operation. Any available benefits are typically part of broader regional development programs rather than IT-specific legislation.
Natural Disaster Risk
Chongqing has a low overall natural disaster risk profile, with an INFORM Risk score of 3 out of 10, as of September 2025. While the overall threat is minimal, operators should engineer facilities to mitigate specific regional hazards.
The most significant environmental risks include:
- River Flood: The region has a high risk score for river flooding due to its location along the Yangtze and Jialing rivers.
- Earthquake: There is a moderate seismic risk in the broader region.
- Tropical Cyclone: While significantly inland, the area can experience secondary effects like heavy rainfall from cyclones that move deep into the continent.
- Drought: The area is also exposed to periods of drought.
