Data Centers in Nanjing
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Nanjing – Eastern China's Resilient Digital Hub
Nanjing offers a compelling alternative to primary coastal markets for businesses prioritizing operational stability and cost efficiency in Eastern China. Its location provides a strategic base for serving the vast Yangtze River Delta economic zone while mitigating some of the risks associated with more congested Tier-1 cities. This market is ideal for disaster recovery, secondary deployments, and latency-tolerant applications requiring a reliable foothold in the region.
Nanjing: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable national connectivity, with international traffic routed through major hubs. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Private connectivity is available to major cloud hubs like Shanghai. |
| Power Cost | US$0.08/kWh — as of Q2 2025 | Highly competitive industrial power rates support cost-effective, high-density deployments. |
| Disaster Risk | Low (3/10) — as of September 2025 | Low overall risk profile according to the INFORM Risk Index. |
| Tax Incentives | No | China does not currently offer specific, widespread tax incentives for data centers. |
| Sales Tax | 13% VAT — as of September 2025 | A standard 13% Value Added Tax applies, with reduced rates for some items. |
Network & Connectivity Ecosystem
Nanjing's connectivity is solid for a Tier-2 market, though it relies on primary hubs like Shanghai for hyperscale cloud and international access.
Carrier Density & Carrier Neutrality The market features at least one primary data center provider as of September 2025. Carrier neutrality is developing, with most facilities providing access to China's principal telecom operators.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Nanjing as of September 2025. Businesses connect to the 0 cloud regions in China via private network extensions or dedicated circuits to major interconnection hubs like Shanghai, ensuring secure, low-latency access.
Internet Exchange Points (IXPs) Public peering is not a major feature of Nanjing's ecosystem. Most traffic exchange occurs privately between carriers or is routed through national IXPs in Beijing and Shanghai.
Bare Metal Bare metal server capacity is available in the region, providing a foundation for private cloud and performance-intensive workloads. Providers like Hivelocity can facilitate deployments in key Asian markets.
Power Analysis
Nanjing provides reliable and cost-effective power, a critical advantage for data center operations.
Average Cost Of Power Industrial power is priced at approximately US$0.08/kWh as of Q2 2025. This competitive rate significantly reduces the total cost of ownership for compute-heavy infrastructure. The national energy mix is dominated by fossil fuels (~65%), with a growing share from renewables (~30%) and nuclear (~5%).
Power Grid Reliability The power grid serving Nanjing's industrial zones is well-engineered and stable, designed to support the region's significant manufacturing and technology sectors. Data centers are typically served by redundant power feeds from separate substations to ensure high levels of uptime.
Market Access, Business & Tax Climate
Nanjing is a major commercial and industrial center, providing excellent access to one of the world's most dynamic economic regions.
Proximity To Key Business Districts Data centers in the area serve Nanjing's advanced manufacturing, electronics, and software development industries. The city is a key part of the Yangtze River Delta economic belt, placing digital infrastructure close to a massive base of enterprise and consumer users.
Regional Market Reach From Nanjing, businesses can effectively serve a population of over 150 million people in the Yangtze River Delta. Its strategic location makes it an excellent secondary site for deployments targeting Shanghai and the broader Eastern China region.
Tax Advantage For Data Centers There are no specific national tax incentives targeted at data center construction or operation in China. The current financial framework focuses on broader economic development, meaning data center operators should model costs based on standard tax regulations.
Natural Disaster Risk
Nanjing has a low overall risk profile, with an INFORM Risk score of 3 out of 10 as of September 2025. While several hazards are present in the region, their probability and expected impact are low compared to global averages.
Key environmental risks include:
- River Flood: The most significant natural hazard, given the city's location on the Yangtze River.
- Tropical Cyclone: Risk from cyclones moving inland, though weakened from their coastal intensity.
- Earthquake: The region has a moderate seismic risk.
- Drought: Periodic risk of drought can impact water resources and power generation.
