Data Centers in Taiwan

Taiwan – Strategic Hub for East Asian Digital Infrastructure

Taiwan is a critical data center market for businesses requiring low-latency connectivity to East Asia. Its combination of a mature colocation landscape, direct cloud access, and proximity to major economic centers makes it an essential location for technology, manufacturing, and financial services firms targeting the region.

Taiwan: At A Glance

Network & Connectivity Ecosystem

Taiwan's connectivity is reliable and diverse, serving as a key traffic exchange point in the Asia-Pacific region.

Carrier Density & Carrier Neutrality: With over 19 providers active as of September 2025, the market offers a healthy mix of local and international carriers. Major data centers provide carrier-neutral interconnection, ensuring competitive pricing and network resilience.

Direct Cloud On-Ramps: Over 3 dedicated cloud on-ramps provide private, high-performance access to 6 major cloud regions as of September 2025. Available providers include:

• AWS
• Google Cloud (GCP)
• Microsoft Azure
• IBM Cloud

Internet Exchange Points (IXPs): The primary exchange is the Taiwan Internet Exchange (TWIX). Peering at TWIX allows for efficient traffic exchange between local networks, reducing latency for domestic users. Most international peering is handled privately within carrier-neutral data centers.

Bare Metal: Bare metal server options are readily available from multiple providers. Global suppliers like phoenixNAP offer compute and storage solutions for performance-intensive workloads.

Power Analysis

Average Cost Of Power: Industrial electricity rates are stable, ranging from approximately $0.08 to $0.12/kWh as of September 2025. These predictable, state-regulated prices provide a significant advantage for managing long-term operational budgets.

Power Grid Reliability: The power grid supporting major industrial and technology parks is well-engineered. Data centers in these zones typically have access to redundant power feeds from multiple substations, supplemented by standard N+1 or 2N UPS systems and backup generators.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are concentrated near Taipei and the Hsinchu Science Park. This provides low-latency connectivity for Taiwan's world-leading semiconductor, electronics manufacturing, and financial services industries.

Regional Market Reach: Taiwan’s strategic location and extensive submarine cable network make it an excellent base for serving markets across East Asia, including mainland China, Japan, and South Korea, with minimal delay.

Tax Advantage For Data Centers: While specific tax incentives for data center construction or operation are not offered, the country has a straightforward corporate tax system. The primary financial advantage comes from the highly skilled tech workforce and a stable, predictable business environment.

Natural Disaster Risk

Overall Risk: High

Taiwan's location in the Pacific Ring of Fire and a major typhoon alley dictates a high level of natural disaster risk. Data center operators mitigate these risks through stringent construction standards and robust resiliency planning.

Key risks as of September 2025 include:

• Earthquake: High seismic activity is a constant concern. Modern data centers are built to withstand significant tremors.
• Typhoon: The island frequently experiences powerful typhoons during the peak season, leading to high winds and heavy rainfall.
• Flooding: Intense rainfall from typhoons can cause localized and riverine flooding.
• Landslide: Mountainous terrain makes certain areas susceptible to landslides, particularly after heavy rains.