Data Centers in Taiwan

Taiwan – Strategic Hub for APAC Digital Services

Executive Summary

Taiwan is a critical market for any business tied to the global semiconductor and high-tech manufacturing supply chain. Its dense network ecosystem and strategic location provide low-latency connectivity to major East Asian markets. This makes Taiwan an essential digital infrastructure hub for manufacturing, IoT, and content delivery throughout the region.

Taiwan: At A Glance

Network & Connectivity Ecosystem

Taiwan’s connectivity landscape is mature and competitive, a direct result of its importance in the global technology sector. The market offers a solid foundation for building reliable, high-performance infrastructure.

Carrier Density & Carrier Neutrality With over 19 network providers active as of September 2025, the market offers healthy competition. Businesses can find a good mix of local, regional, and global carriers in the island's many carrier-neutral data centers.

Direct Cloud On-Ramps There are over 3 dedicated cloud on-ramps in Taiwan, enabling low-latency private access to 6 cloud regions as of September 2025. Available providers include:

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

Internet Exchange Points (IXPs) The Taipei Internet Exchange (TPIX) is the primary hub for domestic peering. Connecting here significantly improves performance and reduces costs for traffic exchanged between local networks.

Bare Metal Bare metal server options are readily available from multiple providers. Global suppliers like Hivelocity and phoenixNAP offer dedicated servers, providing a strong alternative for workloads that require physical hardware isolation.

Power Analysis

Average Cost Of Power Industrial power costs typically range from NT$2.60–3.50/kWh as of September 2025. The grid mix is approximately 86% fossil fuels, 6% nuclear, and 8% renewables. These predictable power costs are a key factor in total cost of ownership calculations for large-scale deployments.

Power Grid Reliability The power grid is reliable, especially within the technology parks and industrial zones where most data centers are located. Facilities are engineered with significant on-site power redundancy, including UPS and generator arrays, to protect against any grid instability.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers are strategically located near key economic zones like Taipei's Neihu Technology Park and the Hsinchu Science Park. This proximity offers low-latency connectivity essential for the semiconductor, R&D, and manufacturing industries that dominate Taiwan's economy.

Regional Market Reach Taiwan serves as an excellent digital gateway to East Asia. Its location enables effective service delivery to high-growth markets including Japan, South Korea, the Philippines, and key coastal business centers in mainland China.

Tax Advantage For Data Centers While Taiwan does not offer specific tax incentives for data center construction or operation, the government fosters a favorable climate for technology companies. The primary financial advantage comes from operating within a world-class technology ecosystem supported by a highly skilled workforce.

Natural Disaster Risk

Taiwan has a high-risk profile for natural disasters, a factor that is well-understood and engineered for by modern data center operators. Facilities are constructed to high seismic and wind-resistance standards to ensure uptime during predictable regional events.

Key environmental risks as of September 2025 include:

• Earthquake: The island is in a highly active seismic zone, making earthquake-resistant building design a standard requirement.
• Typhoon (Hurricane): Located in a major typhoon corridor, facilities require hardened structures and protection against strong winds and heavy rainfall.
• Flooding: Primarily a result of typhoon-related rainfall, requiring careful site selection and flood mitigation systems.
• Landslide: A secondary risk in mountainous areas following typhoons or earthquakes.