Data Centers in Taichung
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Taichung – Strategic Hub for Central Taiwan
Taichung serves as a key data center market for central Taiwan, offering a strategic alternative to the more concentrated infrastructure in Taipei. It is an ideal location for organizations requiring low-latency access to the region's industrial and manufacturing base and for deploying disaster recovery sites. Locating in Taichung ensures resilient connectivity and efficient access to a significant portion of Taiwan's domestic market.
Taichung: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong national connectivity with good subsea cable access from the island. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Taipei; private network extensions are common. |
| Power Cost | NT$2.80–3.50/kWh | Power mix is primarily fossil fuels, impacting long-term cost stability. |
| Disaster Risk | Moderate | Primary risks include seismic activity and typhoons common to the region. |
| Tax Incentives | No | Trump-era tariffs could impact future data center spending. |
| Sales Tax | 5% VAT | Standard value-added tax applies to most goods and services as of September 2025. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality Taichung benefits from Taiwan's competitive telecom market, with access to over 20 domestic and international carriers as of September 2025. While Taipei has higher density, Taichung provides sufficient carrier-neutral options for redundant and diverse network architectures.
Direct Cloud On-Ramps There are no direct public cloud on-ramps located within Taichung as of September 2025. Businesses connect to the 0 cloud regions available in Taiwan via private network interconnects or dedicated circuits to facilities in Taipei, where major cloud providers have established access points.
Internet Exchange Points (IXPs) The primary Internet Exchange Point in Taiwan is the Taiwan Internet Exchange (TWIX), located in Taipei. Most peering for Taichung-based operations occurs through private connections or is routed through network providers with a presence at TWIX, ensuring efficient traffic exchange within Taiwan.
Bare Metal Bare metal server availability is good, with providers offering dedicated server solutions from facilities across Taiwan. Global providers like Hivelocity and Leaseweb can service the market, providing options for companies that require direct hardware control for performance or security reasons.
Power Analysis
Average Cost Of Power Industrial power costs in Taichung typically range from NT$2.80 to NT$3.50 per kWh as of September 2025. Taiwan's reliance on fossil fuels, which constitute approximately 86% of the energy mix, can lead to price volatility compared to markets with more diverse energy sources.
Power Grid Reliability The power grid serving Taiwan's major industrial and technology centers is well-engineered. Data center operators in the Taichung area benefit from modern grid infrastructure and often have multi-substation support to enhance uptime and service continuity.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Taichung are positioned to serve the Central Taiwan Science Park, a major hub for semiconductor manufacturing, precision machinery, and optoelectronics. This proximity allows for low-latency connectivity critical for advanced manufacturing and R&D operations.
Regional Market Reach From Taichung, businesses can effectively serve the entire central region of Taiwan, a population of several million people. Its location provides a valuable geographic alternative for disaster recovery and business continuity for companies with a primary presence in northern or southern Taiwan.
Tax Advantage For Data Centers Taiwan does not offer specific tax incentives for data center development. The standard corporate tax structure applies, and international trade policies can influence hardware procurement costs for large-scale deployments.
Natural Disaster Risk
Overall Risk: Moderate
Taichung, like all of Taiwan, is in a seismically active region and is exposed to seasonal weather events. As of September 2025, key environmental risks are well-understood and managed through modern infrastructure design and stringent building codes.
- Earthquake: The island is located near the Ring of Fire, making seismic activity the most significant natural hazard.
- Typhoon: The region is subject to typhoons annually between June and October, bringing high winds and heavy rainfall.
- Flood: Intense rainfall from typhoons can lead to localized or riverine flooding.
- Landslide: Hilly and mountainous terrain outside the urban core presents a risk of landslides during heavy rain events.
