Data Centers in Taiwan

Taiwan – Strategic Hub for East Asian Digital Markets

Taiwan is a primary connectivity hub for businesses requiring low-latency access to mainland China and other key East Asian markets. Its dense ecosystem of data centers and direct cloud access provides a reliable platform for companies scaling digital services, gaming, and manufacturing workloads across the region, balancing performance with operational stability.

Taiwan: At A Glance

Network & Connectivity Ecosystem

Taiwan's network infrastructure is well-developed, designed to serve a demanding domestic technology market and act as a gateway to greater Asia. With 22 data centers, the market offers a solid foundation for digital operations.

Carrier Density & Carrier Neutrality: The market includes approximately 19 providers as of September 2025, offering a healthy mix of local and international carriers. This ensures competitive pricing and resilient connectivity options within carrier-neutral facilities.

Direct Cloud On-Ramps: Over 3 direct cloud on-ramps provide dedicated, low-latency connections to major cloud providers. As of September 2025, this includes access to 6 cloud regions from providers like AWS, Google Cloud (GCP), Microsoft Azure, and IBM Cloud.

Internet Exchange Points (IXPs): The primary public peering point is the Taiwan Internet Exchange (TPIX), which facilitates efficient local traffic exchange and reduces latency between networks. Most large-scale peering remains private between major carriers and content providers.

Bare Metal: Bare metal server options are readily available from multiple providers. Global suppliers like Hivelocity offer dedicated server infrastructure for workloads demanding maximum performance and control.

Power Analysis

Taiwan's power infrastructure is built to support its significant industrial and technology manufacturing base, offering reliability in key commercial zones.

Average Cost Of Power: Industrial electricity rates typically range from NT$2.50 to NT$3.50/kWh as of September 2025. This competitive pricing helps manage the high-density power demands of modern computing infrastructure.

Power Grid Reliability: The power grid is generally stable, particularly in the northern and western metropolitan areas where most data centers are located. These facilities are supported by redundant power feeds from multiple substations to ensure high levels of uptime.

Market Access, Business & Tax Climate

Taiwan offers excellent access to both local and regional markets, backed by a mature business environment.

Proximity To Key Business Districts: Data centers are concentrated near Taipei's financial and technology centers as well as the Hsinchu Science Park, a global hub for semiconductor and electronics manufacturing. This proximity provides low-latency connectivity for mission-critical industrial and enterprise applications.

Regional Market Reach: Taiwan serves as a strategic location for reaching hundreds of millions of users in mainland China, Japan, South Korea, and Southeast Asia. Its central position and robust subsea cable connectivity are ideal for gaming, content delivery, and financial services.

Tax Advantage For Data Centers: The primary financial advantage is a straightforward and predictable tax environment without complex, conditional incentive programs. Businesses benefit from a standard 5% VAT on goods and services, which simplifies financial planning for hardware importation and operational expenditures.

Natural Disaster Risk

Taiwan has a high-risk profile due to its location in the Pacific Ring of Fire and a major typhoon corridor. Data center operators mitigate these risks through stringent construction standards and disaster recovery planning.

Overall Risk: High

Key risks as of September 2025 include:

• Earthquake: Very high probability due to the island's position at the junction of two tectonic plates.
• Typhoon (Hurricane): Frequent and severe tropical cyclones occur between June and October, bringing high winds and heavy rainfall.
• Flooding: Intense rainfall from typhoons can cause significant inland and riverine flooding.
• Landslide: Mountainous terrain combined with heavy rainfall creates a substantial risk of landslides.