Data Centers in New Taipei City
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New Taipei City – Strategic Hub for Taiwan's Digital Core
Executive Summary
New Taipei City is a primary data center market for businesses requiring low-latency access to Taiwan's dense population and thriving technology sector. Its strategic location, coupled with direct cloud access, provides a reliable foundation for serving the island's digital economy. This market is built for performance-sensitive applications where uptime and speed are critical.
New Taipei City: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity for regional and local access. |
| Direct Cloud On-Ramps | Over 1 – as of September 2025 | Direct access to AWS enhances hybrid cloud performance. |
| Power Cost | $0.08 - $0.12/kWh – as of September 2025 | Grid relies heavily on fossil fuels. |
| Disaster Risk | Moderate – as of September 2025 | Primarily seismic and typhoon-related risks. |
| Tax Incentives | No | No specific data center tax incentives are promoted. |
| Sales Tax | 5% VAT – as of September 2025 | Standard Value-Added Tax applies to services. |
Network & Connectivity Ecosystem
New Taipei City's digital infrastructure provides a solid base for local and regional operations. The ecosystem is characterized by good carrier access and direct connections to major cloud platforms.
Carrier Density & Carrier Neutrality: The market offers access to over 4 carriers as of September 2025. Colocation facilities provide carrier-neutral environments, allowing customers to connect with the provider that best suits their performance and cost requirements.
Direct Cloud On-Ramps: With over 1 dedicated on-ramp available as of September 2025, businesses can establish private, high-performance connections to major cloud providers. This enables secure and reliable hybrid cloud architectures. The available on-ramp is:
- AWS
Internet Exchange Points (IXPs): Most peering in Taiwan is facilitated through the Taiwan Internet Exchange (TPIX) in nearby Taipei. This central exchange point ensures efficient traffic routing and reduces latency for domestic users.
Bare Metal: Bare metal server options are available from multiple providers. These solutions offer the dedicated performance needed for demanding applications and are supplied by providers such as Hivelocity.
Power Analysis
Taiwan's power infrastructure is well-developed, particularly in the industrial zones where data centers are concentrated.
Average Cost Of Power: Industrial power costs are estimated to be between $0.08 and $0.12/kWh as of September 2025. These competitive rates help manage the significant operational expenses associated with high-density computing. The grid's power mix is approximately 86% fossil fuels, 6% nuclear, and 8% renewables.
Power Grid Reliability: The power grid serving New Taipei City's data center corridors is well-engineered and stable. Facilities are typically supported by redundant power feeds from multiple substations, ensuring high levels of uptime for mission-critical operations.
Market Access, Business & Tax Climate
New Taipei City benefits from its integration into one of Asia's most important technology and manufacturing economies.
Proximity To Key Business Districts: Data centers in this market are located near key industrial parks and the central business districts of both New Taipei and Taipei. This proximity serves the finance, electronics, and manufacturing sectors that define the region's economy.
Regional Market Reach: This market is an ideal hub for serving Taiwan's 23 million residents. Its central location and strong connectivity ensure low-latency digital service delivery across the entire island.
Tax Advantage For Data Centers: There are no specific tax incentives for data centers. The primary financial advantage stems from operating within a major economic zone with access to a skilled workforce and a large domestic market.
Natural Disaster Risk
New Taipei City carries a moderate risk profile for natural disasters, consistent with its location in the Western Pacific. As of September 2025, operators should engineer infrastructure to withstand the region's primary environmental threats.
Key risks include:
- Earthquake: The region is in a seismically active zone, making seismic resilience a critical design factor for all data centers.
- Typhoon: Seasonal typhoons bring strong winds and heavy rainfall, requiring sturdy building construction and effective flood mitigation systems.
- Flooding: Intense rainfall from tropical storms can lead to localized flooding.
- Landslide: Risk is present in areas with significant changes in elevation.
