Data Centers in Chongqing
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Chongqing – Your Hub for Western China
Chongqing is a strategic digital hub for businesses targeting Western China's vast inland markets. Its combination of affordable power and a growing data center ecosystem provides a reliable foundation for low-latency application delivery and regional expansion, ensuring uptime and performance for critical operations.
Chongqing: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A solid secondary market with good national but limited international carrier options. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Private extension options are available to connect to hubs like Chengdu or Beijing. |
| Power Cost | US$0.08/kWh – as of Q2 2025 | Very competitive industrial rates driven by a coal-heavy and hydro-supported grid. |
| Disaster Risk | Low (3/10) – as of September 2025 | Primary risks include river flooding and earthquakes; overall exposure is low. |
| Tax Incentives | No | China does not offer specific tax incentives for data center development or operations. |
| Sales Tax | 13% VAT – as of September 2025 | A standard 13% Value Added Tax applies, with reduced rates for some items. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality The market has at least 3 data centers operated by 2 providers as of September 2025. Carrier density is developing, with access to major national providers. Carrier-neutral facilities are available, allowing for interconnection between different network operators.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Chongqing's data centers as of September 2025. Businesses require private network connections (PNI/wave) to access cloud provider fabrics in major hubs like Chengdu, Beijing, or Shanghai.
Internet Exchange Points (IXPs) Public peering is limited within the city. Most interconnection occurs privately within data centers or is routed through national exchange points in China's primary digital hubs.
Bare Metal Bare metal server capacity is available, offering dedicated compute resources for performance-sensitive workloads. Providers like Hivelocity and phoenixNAP can service deployments in the region.
Power Analysis
Average Cost Of Power Industrial electricity rates in Chongqing are approximately US$0.08/kWh as of Q2 2025. This competitive pricing makes running high-density compute workloads more economical than in many other Asian markets. China's power mix consists of roughly 65% fossil fuels (primarily coal), 30% renewables (mostly hydro), and 5% nuclear.
Power Grid Reliability The power grid serving Chongqing's main commercial zones is well-engineered, with infrastructure designed to support the city's significant industrial and manufacturing base. Data centers in the area are typically connected to multiple substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Chongqing are positioned to serve the city's massive industrial, manufacturing, and technology sectors. Their location provides low-latency connectivity essential for logistics, automotive production, and financial services operations concentrated in the urban core.
Regional Market Reach Chongqing serves as a critical gateway to over 300 million people across Western and Southwestern China. Its infrastructure supports digital services for a vast and rapidly developing economic region.
Tax Advantage For Data Centers There are no direct tax incentives for data center operators or tenants in China. The primary financial advantage comes from the operational savings on competitively priced power and labor, not from specific tax relief programs.
Natural Disaster Risk
Chongqing has a Low overall risk profile, with an INFORM score of 3 out of 10 as of September 2025. The area's primary natural hazards are related to its geography and climate.
Key environmental risks include:
- River Flood: The highest individual risk factor, given the city's location at the confluence of the Yangtze and Jialing rivers.
- Earthquake: Moderate seismic risk due to regional fault lines.
- Tropical Cyclone: Potential for impact from the remnants of cyclones moving inland.
- Drought: Periodic risk that can affect hydropower generation and water resources.
