Data Centers in Kaohsiung
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Kaohsiung – Strategic Hub for Southern Taiwan
Kaohsiung is a developing data center market designed for organizations that require a strategic presence in Southern Taiwan. It provides crucial geographic diversity from the primary northern hub of Taipei, supporting the region's significant industrial, manufacturing, and global shipping operations. This market is ideal for disaster recovery and for delivering low-latency services to end-users in Taiwan's second-largest metropolitan area.
Kaohsiung: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A secondary market with solid infrastructure, though less dense than Taipei. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Cloud access is via private network extension to interconnection hubs in Taipei. |
| Power Cost | NT$2.80 – NT$3.50/kWh | A competitive rate that supports scalable, cost-effective operations for industrial users. |
| Disaster Risk | Moderate | Prone to seismic activity and typhoons, requiring modern, resilient data center designs. |
| Tax Incentives | No | No specific data center tax incentives are currently offered by the government. |
| Sales Tax | 5% VAT – as of September 2025 | The standard Value Added Tax applies to equipment and services. |
Network & Connectivity Ecosystem
Kaohsiung's connectivity ecosystem is functional but requires leveraging Taipei for broader access. It serves as a solid regional access point rather than a primary international hub.
Carrier Density & Carrier Neutrality Carrier density is low, with fewer than 5 unique network providers available in the metro area as of September 2025. Colocation facilities are limited, focusing on providing foundational connectivity rather than a deeply interconnected, carrier-neutral environment.
Direct Cloud On-Ramps There are no direct cloud on-ramps in Kaohsiung. Businesses connect to cloud providers by establishing private network links to data centers and network hubs in Taipei, where all major cloud providers have a presence.
Internet Exchange Points (IXPs) The market lacks a significant public Internet Exchange Point. Most network peering for Taiwanese traffic is centralized at the Taiwan Internet Exchange (TPIX) in Taipei.
Bare Metal Bare metal server availability is present, typically through providers that can deploy hardware within the region. Companies like Hivelocity offer automated bare metal solutions that can serve customers in the area from regional hubs.
Power Analysis
Taiwan's power infrastructure is well-established, though it faces long-term strategic questions regarding its energy mix.
Average Cost Of Power Industrial power costs in Kaohsiung typically range from NT$2.80 to NT$3.50/kWh as of September 2025. This competitive pricing structure is beneficial for managing the high operational costs associated with modern, high-density compute.
Power Grid Reliability The power grid is generally reliable, particularly in the industrial zones where data centers are located. Facilities are supported by well-engineered infrastructure, including redundant power feeds and substation access, to ensure high levels of uptime.
Market Access, Business & Tax Climate
Kaohsiung offers direct access to the industrial heart of Southern Taiwan within a straightforward business environment.
Proximity To Key Business Districts Data centers in Kaohsiung are positioned to serve the city's massive international port, one of the busiest in the world. They also provide low-latency access to the petrochemical, steel, and manufacturing industries in the surrounding area and the Southern Taiwan Science Park.
Regional Market Reach A deployment in Kaohsiung effectively serves the entire southern half of Taiwan. This includes the major cities of Tainan and the large population centers throughout the region, reducing reliance on infrastructure in the north.
Tax Advantage For Data Centers Taiwan does not offer specific tax incentives for data center development or operation. The primary financial advantage comes from a clear and predictable tax code, allowing for straightforward financial planning without complex credit or abatement schemes.
Natural Disaster Risk
Kaohsiung has a moderate risk profile for natural disasters, consistent with its location in the Western Pacific. While specific risk scoring data is not available, a qualitative assessment highlights several key environmental factors.
Modern data centers in the region are engineered to withstand these threats. The primary risks, as of September 2025, include:
- Seismic Activity: The island of Taiwan is located near the junction of two tectonic plates, resulting in a high likelihood of earthquakes.
- Typhoon: The region is susceptible to powerful tropical cyclones from May to November, bringing high winds and heavy rainfall.
- Flooding: Intense rainfall from typhoons or seasonal monsoons can lead to localized flooding.
