Data Centers in Chongqing
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Chongqing – Western China's Digital Infrastructure Hub
Chongqing serves as a critical digital gateway to China's vast inland markets. For businesses needing to serve Western and Central China, this market provides a strategic location with favorable power costs, balancing geographic reach with operational efficiency. Its infrastructure is built to support the region's massive industrial and logistical economy.
Chongqing: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, with latency advantages for serving inland provinces. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Private connections are available; major public cloud hubs are in Chengdu or Shanghai. |
| Power Cost | US$0.08/kWh – as of Q2 2025 | Very competitive industrial power rates, significantly lower than many coastal hubs. |
| Disaster Risk | Low (3/10) – as of September 2025 | Primary risks are seismic and river flooding, but overall risk profile is low. |
| Tax Incentives | No | China has moved away from broad renewable energy subsidies for data centers. |
| Sales Tax | 13% VAT – as of September 2025 | Standard rate applies, with reduced rates of 9% or 6% on some items. |
Network & Connectivity Ecosystem
Chongqing's connectivity is centered on serving its role as a primary economic hub for Western China. While not as dense as coastal markets like Shanghai, it provides reliable access for regional distribution.
Carrier Density & Carrier Neutrality: The market features 3 data centers from at least 2 distinct providers as of September 2025. Carrier-neutral facilities are available, offering access to China's primary telecom operators.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Chongqing's data centers as of September 2025. Businesses typically establish private network connections to major cloud regions in cities like Chengdu or Shanghai to achieve secure, low-latency hybrid cloud architectures.
Internet Exchange Points (IXPs): Public peering is not a major feature of this market. Most interconnection occurs privately within data centers or is routed through national exchange points in primary hubs like Beijing and Shanghai.
Bare Metal: Bare metal server options are available, providing dedicated compute for performance-sensitive workloads. Providers such as Hivelocity offer deployment capabilities in the region.
Power Analysis
Chongqing benefits from its proximity to major power generation sources, including the Three Gorges Dam, resulting in reliable and cost-effective electricity.
Average Cost Of Power: At US$0.08/kWh as of Q2 2025, Chongqing offers some of the most competitive industrial power pricing in China. This low cost provides a significant operational advantage for high-density compute and storage deployments. The grid mix is primarily fossil fuel-based (~65%), with a substantial renewable component from hydropower (~18%).
Power Grid Reliability: The power grid supporting Chongqing's industrial and data center zones is well-engineered for high availability. Major facilities are typically supported by redundant substations to ensure uptime for critical operations.
Market Access, Business & Tax Climate
Chongqing is one of China's four municipalities directly controlled by the central government, highlighting its strategic importance. Its location on the Yangtze River makes it a vital logistics and manufacturing center.
Proximity To Key Business Districts: Data centers in Chongqing are positioned to serve the city's vast industrial parks, which are home to automotive, technology, and advanced manufacturing companies. This proximity enables low-latency connectivity for production lines, IoT, and supply chain management systems.
Regional Market Reach: The city is the ideal anchor point for digital services targeting Southwest China, a region with hundreds of millions of people. It provides a latency advantage over coastal hubs for reaching consumers and businesses in Sichuan, Guizhou, and Yunnan provinces.
Tax Advantage For Data Centers: There are no specific tax incentives targeted at data center construction or operation in China. The country's tax policies are standardized nationally, focusing on broader economic development rather than industry-specific subsidies.
Natural Disaster Risk
Chongqing has a low overall risk profile for natural disasters, with an INFORM Risk score of 3 out of 10 as of September 2025. The assessment indicates a stable environment for critical infrastructure.
While the national risk profile for China includes coastal and cyclone threats, they are not material risks to the inland municipality of Chongqing. The primary local hazards to consider are:
- River Flood: A high-risk factor due to the city's location along the Yangtze and Jialing rivers. Modern flood control infrastructure mitigates this risk for key industrial zones.
- Earthquake: A moderate seismic risk, common for the region. Data centers are constructed to meet building codes designed to withstand regional seismic activity.
- Drought: A moderate risk that can impact hydropower generation and water availability.
