Data Centers in Nanjing
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Nanjing – Eastern China's Strategic Digital Hub
Nanjing serves as a critical data center market for organizations requiring low-latency access to the Yangtze River Delta, one of China's most vital economic zones. This market provides reliable infrastructure for businesses targeting the dense industrial and technological ecosystem of eastern China, ensuring high-performance application delivery and data processing close to end-users. For companies that need a presence near Shanghai but want geographic diversity, Nanjing is a strong choice.
Nanjing: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid national and regional connectivity, with some reliance on larger hubs for international routes. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access to all major clouds is available via private network extension from Shanghai. |
| Power Cost | US$0.08/kWh – as of Q2 2025 | The energy mix is primarily fossil fuels (~65%), with a growing renewables share (~30%). |
| Disaster Risk | Low (3/10) – as of September 2025 | Primary risks are environmental, including flooding and seismic activity; overall risk profile is low. |
| Tax Incentives | No | China does not currently offer specific national tax incentives for data center development. |
| Sales Tax | 13% VAT – as of September 2025 | A standard 13% Value Added Tax applies, with reduced rates for some goods. |
Network & Connectivity Ecosystem
Nanjing's connectivity is robust for a secondary market, anchored by a significant national provider and strong regional fiber networks. While it is not a primary interconnection hub itself, its proximity to Shanghai allows for excellent access to global networks.
Carrier Density & Carrier Neutrality: The market features at least 1 major provider, offering access to national and regional networks as of September 2025. Carrier-neutral facilities provide options for interconnection, though the ecosystem is less dense than in Beijing or Shanghai.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Nanjing's data centers as of September 2025. High-speed, low-latency connectivity to all major cloud providers, including Alibaba Cloud, AWS, Google Cloud (GCP), and Microsoft Azure, is achieved through dedicated network links to facilities in nearby Shanghai.
Internet Exchange Points (IXPs): Public peering is limited within Nanjing. Most traffic exchange occurs privately between carriers or is routed through major national IXPs located 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 and phoenixNAP can service the region, offering customized server configurations.
Power Analysis
Power infrastructure in Nanjing is reliable and designed to support the region's significant industrial and technological base. The grid is stable, with costs that are competitive for industrial users.
Average Cost Of Power: Industrial electricity rates average US$0.08/kWh as of Q2 2025. This competitive pricing helps manage the significant operational expenses of high-density compute deployments. The grid is powered by a mix of sources, with fossil fuels, primarily coal, accounting for approximately 65% of generation.
Power Grid Reliability: The power grid serving Nanjing's key industrial and technology zones is well-engineered, with multiple substations providing redundant power sources to data center facilities. This design minimizes the risk of utility outages and supports high uptime requirements.
Market Access, Business & Tax Climate
Nanjing offers strategic access to one of the world's most dynamic economic regions, supported by a business environment focused on technological and industrial growth.
Proximity To Key Business Districts: Data centers in Nanjing are located near major technology development zones and industrial parks. This proximity provides low-latency connectivity for manufacturing, research and development, and financial services firms operating in the city and the broader Jiangsu province.
Regional Market Reach: Nanjing is an ideal location for serving the Yangtze River Delta, a region with a population exceeding 150 million people. Its infrastructure supports digital services for a massive consumer and business market, reaching from Shanghai to Hangzhou.
Tax Advantage For Data Centers: China does not currently provide specific national tax incentives designed to attract data center investment. The financial framework relies on standard corporate tax policies and regional development programs which may offer localized benefits.
Natural Disaster Risk
Nanjing has a Low risk profile for natural disasters, with an INFORM Risk score of 3 out of 10 as of September 2025. While the overall threat is minimal, organizations should engineer infrastructure to account for specific regional environmental hazards.
The most significant natural risks for the region include:
- River Flood: High risk (9.3/10) due to proximity to the Yangtze River.
- Tsunami & Coastal Flood: High national risk (9/10), though the direct threat to inland Nanjing is indirect and related to broader regional weather systems.
- Tropical Cyclone: Moderate to high risk (7.8/10) during typhoon season.
- Earthquake: Moderate risk (6.7/10), as the region is seismically active.
