Data Centers in Kaohsiung
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Kaohsiung – Strategic Port for Digital Infrastructure
Kaohsiung serves as a secondary data center market in Taiwan, offering a strategic location for disaster recovery and regional service delivery. It is best suited for organizations requiring robust connectivity within southern Taiwan and a resilient footprint away from the primary hub in Taipei. This market provides essential infrastructure to support the region's significant industrial and shipping sectors, ensuring operational continuity.
Kaohsiung: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, though less dense than the primary Taipei market. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is primarily via private network extension to Taipei. |
| Power Cost | NT$2.80–3.50/kWh, as of September 2025 | Industrial power costs are competitive for the APAC region. |
| Disaster Risk | Moderate | Primary risks include seismic activity and typhoons common to the region. |
| Tax Incentives | No | No specific data center incentives are currently offered. See details below. |
| Sales Tax | 5% VAT, as of September 2025 | Standard Value Added Tax applies to hardware and services. |
Network & Connectivity Ecosystem
Kaohsiung's connectivity ecosystem is developing, providing essential services for southern Taiwan while relying on Taipei for broader international and cloud access.
Carrier Density & Carrier Neutrality: The market includes at least one primary colocation provider as of September 2025. Carrier density is limited compared to Taipei, with most enterprises leveraging national telecommunications providers for connectivity.
Direct Cloud On-Ramps: There are no public cloud on-ramps located directly in Kaohsiung as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure through dedicated private network links to on-ramps in Taipei.
Internet Exchange Points (IXPs): Most peering occurs privately or through IXPs located in Taipei, such as the Taiwan Internet Exchange (TWIX). These exchanges are reachable via national network connections, facilitating efficient traffic exchange across the island.
Bare Metal: Bare metal server options are available, often provisioned from providers with a presence in Taipei who can service the Kaohsiung market. Services from providers like Hivelocity can deliver dedicated compute resources to the region.
Power Analysis
Average Cost Of Power: Industrial electricity rates in Kaohsiung are estimated between NT$2.80 and NT$3.50 per kWh, as of September 2025. These competitive rates help manage the significant operational expense of high-density computing. Taiwan's power mix is primarily fossil fuels (~86%), with smaller contributions from nuclear (~6%) and renewables (~8%).
Power Grid Reliability: The power grid supporting Kaohsiung's industrial zones is well-engineered for commercial needs. Data center operators typically implement multi-layered redundancy, including UPS and generator backups, to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Kaohsiung provide low-latency connectivity to the Port of Kaohsiung, one of the world's largest container ports, and major industrial parks like the Nanzih Technology Industrial Park. This proximity is critical for logistics, manufacturing, and maritime operations.
Regional Market Reach: Kaohsiung is ideally positioned to serve the large population and industrial base of southern Taiwan. Its port infrastructure also makes it a key node for subsea cable systems, offering a secondary landing point to the primary hubs in the north.
Tax Advantage For Data Centers: Taiwan does not currently offer specific tax incentives for data center development or operation. Potential tariffs on imported server hardware could influence total project costs for large-scale deployments.
Natural Disaster Risk
Kaohsiung has a moderate natural disaster risk profile, consistent with its location in the Western Pacific. As of September 2025, specific risk data was not available, but a general assessment points to several key environmental factors.
The primary risks for infrastructure in this region are:
- Earthquake: The island is in a seismically active zone, making earthquake-resistant building design a standard requirement for data centers.
- Typhoon: The region is susceptible to strong tropical cyclones during the typhoon season, which can bring high winds and heavy rainfall.
- Flooding: Intense rainfall associated with typhoons can lead to localized flooding.
