Data Centers in Nanjing
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Nanjing – Strategic Hub in the Yangtze River Delta
Nanjing serves as a crucial secondary data center market in China, offering a strategic alternative to the densely saturated Shanghai metro. It is an ideal location for organizations requiring robust infrastructure to serve the vast Yangtze River Delta, balancing cost-effectiveness with proximity to a major economic powerhouse. This market provides reliable connectivity and power for production workloads and disaster recovery solutions targeting Eastern China.
Nanjing: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong national and regional fiber; international connectivity routes through major coastal hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Private connections are available to major cloud providers in nearby Shanghai. |
| Power Cost | US$0.08/kWh – as of Q2 2025 | Below the average for major Asian hubs, offering a significant operational cost advantage. |
| Disaster Risk | Low (3/10) – as of September 2025 | Primary risks are environmental, with minimal exposure to major seismic or cyclonic events. |
| Tax Incentives | No | Lacks specific tax breaks for data center development as of September 2025. |
| Sales Tax | 13% VAT – as of September 2025 | Standard rate applies, with reduced rates of 9% or 6% on certain items. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The Nanjing market provides access to a solid base of national and regional carriers, with an estimated 15-20 providers present in key facilities as of September 2025. While smaller than Shanghai, carrier-neutral options are available, offering competitive connectivity.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Nanjing as of September 2025. Businesses connect to all major cloud providers, including AWS, Google Cloud (GCP), Microsoft Azure, and Alibaba Cloud, via dedicated network links to Shanghai, the primary regional hub.
Internet Exchange Points (IXPs): Public peering is not a significant feature of the Nanjing market. Most interconnection occurs through private peering arrangements within data centers or by routing traffic through major national exchanges in cities like Shanghai and Beijing.
Bare Metal: Bare metal server options are available from providers with a presence in the region. Services from companies like OVHcloud and Leaseweb can be deployed to serve local and regional workloads.
Power Analysis
Average Cost Of Power: The industrial power rate in Nanjing is approximately US$0.08/kWh as of Q2 2025. This competitive pricing makes the market attractive for high-density deployments and can lead to substantially lower operational expenditures compared to other top-tier Asian markets. China's 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 primary industrial and technology zones is well-engineered and stable. Data centers in the area are supported by redundant power feeds and substations, ensuring high levels of uptime for mission-critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Nanjing data centers are strategically located to support the city's significant manufacturing, petrochemical, and technology industries. Their location provides low-latency connectivity to the Nanjing Economic and Technological Development Zone and other key commercial areas.
Regional Market Reach: As the capital of Jiangsu province, Nanjing is a central node for serving the entire Yangtze River Delta, one of the world's largest and most dynamic economic regions. It provides an effective base for reaching a population of over 150 million with low latency.
Tax Advantage For Data Centers: China currently does not offer nationwide tax incentives specifically for data center construction or operation. The primary financial advantage comes from competitive power pricing and lower real estate costs compared to primary markets like Shanghai.
Natural Disaster Risk
Nanjing has a low overall disaster risk profile, with an INFORM Risk score of 3 out of 10 as of September 2025. While the overall threat level is minimal, operators should engineer facilities to mitigate specific, high-scoring regional environmental risks.
Key potential hazards include:
- River Flood (9.3/10): A high score reflecting the city's location on the Yangtze River.
- Tsunami (9/10): A national-level risk factor; direct impact is negligible due to the city's inland location.
- Coastal Flood (9/10): Similar to tsunami risk, this is a regional coastal concern with no direct impact on Nanjing.
- Tropical Cyclone (7.8/10): While inland, the region can be affected by the remnants of cyclones, bringing heavy rain and wind.
- Earthquake (6.7/10): The area has moderate seismic risk.
