Data Centers in Xi'an
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Xi'an – Strategic Inland Digital Hub
Executive Summary
Xi'an is a strategic data center market for organizations targeting central and western China. It provides a reliable and cost-effective alternative to the saturated coastal hubs, positioning digital infrastructure to serve a vast and growing inland population. This market is ideal for disaster recovery, content delivery, and application hosting focused on domestic reach.
Xi'an: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid national connectivity; international routes typically transit through primary hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via private network extension to hubs like Beijing or Shanghai. |
| Power Cost | US$0.08/kWh – as of Q2 2025 | Competitive pricing helps manage operational expenses for high-density deployments. |
| Disaster Risk | Low (3/10) – as of September 2025 | Lower exposure to coastal and seismic events compared to other regions. |
| Tax Incentives | No | Specific data center incentives are not offered at this time. |
| Sales Tax | 13% VAT – as of September 2025 | A standard 13% Value Added Tax applies, with reduced rates for some items. |
Network & Connectivity Ecosystem
Xi'an's connectivity is focused on providing strong domestic service. While not a primary international gateway, the city offers reliable access to China's national backbone networks.
Carrier Density & Carrier Neutrality The market has a focused carrier presence, with at least 1 major provider operating across 3 facilities as of September 2025. Connectivity is primarily routed through China's principal telecommunications companies, ensuring reliable national reach. Carrier-neutral options are available, allowing for interconnection flexibility.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Xi'an's data centers as of September 2025. High-performance access to hyperscalers like Alibaba Cloud, AWS, and others is achieved through dedicated network links to primary access points in major hubs such as Beijing and Shanghai.
Internet Exchange Points (IXPs) Public peering is limited in Xi'an. Most traffic exchange occurs privately between carriers and content providers or is routed through the country's major national IXPs in Beijing, Shanghai, and Guangzhou.
Bare Metal Bare metal server options are available in the Xi'an market, providing dedicated compute resources for performance-sensitive workloads. Providers such as Hivelocity offer deployment capabilities in the region.
Power Analysis
Power infrastructure in Xi'an is stable and cost-effective, reflecting its status as a significant industrial and technological center.
Average Cost Of Power Industrial power pricing is approximately US$0.08/kWh as of Q2 2025. This competitive rate makes Xi'an an attractive location for reducing the total cost of ownership for compute-heavy infrastructure. The national grid is primarily fossil-fuel-based (~65%), with a growing renewable energy portfolio of around 30%.
Power Grid Reliability The power grid serving Xi'an's main technology zones is well-engineered and reliable. Data centers in the area are supported by redundant power feeds and multiple substations, ensuring high levels of uptime for mission-critical operations.
Market Access, Business & Tax Climate
Xi'an offers strategic access to China's inland markets and a supportive business environment for technology and research.
Proximity To Key Business Districts Data centers in Xi'an are strategically located to serve the Xi'an High-tech Industries Development Zone, a major hub for software, aerospace, and telecommunications companies. This proximity enables low-latency connectivity for local research, development, and enterprise operations.
Regional Market Reach As the largest city in Northwest China, Xi'an is the primary digital gateway to the country's vast western regions. Colocation here effectively serves a population of hundreds of millions across multiple provinces, reducing latency for end-users in these developing markets.
Tax Advantage For Data Centers While China does not currently offer specific tax credits aimed at data center construction or renewable energy use by operators, businesses may benefit from broader national development policies. Companies should evaluate incentives related to the Western Development Program for potential advantages.
Natural Disaster Risk
Xi'an has a low overall risk profile for natural disasters, with an INFORM Risk score of 3 out of 10 as of September 2025. Its inland location shields it from the primary coastal threats that affect other major Chinese markets.
The most significant environmental risks for infrastructure in this region include:
- River Flood: The area has high exposure to river flooding events.
- Earthquake: The region has a moderate seismic risk.
- Drought: Periodic drought conditions can impact water resources and agriculture.
- Epidemic: As a major population center, the region has a moderate risk of epidemic events.
