Data Centers in Taichung
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Taichung – Strategic Hub for Central Taiwan
Taichung is a developing colocation market suited for enterprises needing to serve central Taiwan with low latency. For companies prioritizing disaster recovery or seeking a secondary site to Taipei, Taichung offers a compelling and cost-effective alternative, ensuring business continuity and reliable access to a significant regional population.
Taichung: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Good 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 providers in Taipei. |
| Power Cost | NT$3.00-4.00/kWh | Grid is ~86% fossil fuel-based, impacting long-term price stability. |
| Disaster Risk | Low | No specific high-risk data found for the immediate metro area. |
| Tax Incentives | No | No major data center-specific tax incentives are currently offered. |
| Sales Tax | 5% VAT – as of September 2025 | Standard value-added tax applies to equipment and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Carrier density in Taichung is sufficient for regional enterprise needs, with access to all major Taiwanese providers. While not as dense as Taipei, the market supports carrier-neutral facilities, offering choice and competitive pricing for transit and transport.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps located within Taichung as of September 2025. Businesses requiring dedicated cloud access must establish private network interconnects (PNI) or wavelength services to cloud provider points of presence in Taipei.
Internet Exchange Points (IXPs): Public internet exchange points are concentrated in Taipei. Peering in Taichung is typically handled privately between carriers or routed through facilities in the capital, which serves as the national hub for internet traffic exchange.
Bare Metal: Bare metal server options are available, providing a strong alternative for workloads that require dedicated physical hardware for performance or security. Providers such as Hivelocity and phoenixNAP can serve the market, often deploying from nearby regional hubs.
Power Analysis
Average Cost Of Power: Industrial electricity rates in Taichung typically range from NT$3.00 to NT$4.00 per kWh, as of September 2025. This cost structure is competitive for the region, but businesses should monitor energy markets, as Taiwan's grid relies heavily on fossil fuels (approximately 86%).
Power Grid Reliability: The power grid supporting Taichung's industrial zones is well-engineered and stable. Major data center facilities are supported by redundant power feeds and substation architectures designed to maintain uptime for critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Taichung provide low-latency access to the Taichung Industrial Park, the Central Taiwan Science Park, and the city's central business district. This proximity is critical for manufacturing, technology, and financial services companies operating in the region.
Regional Market Reach: Taichung is strategically positioned to serve the entire central Taiwan region, reaching a population of several million. Its location offers a valuable disaster recovery alternative to facilities in the more seismically active Taipei basin.
Tax Advantage For Data Centers: Taiwan does not offer specific tax incentives designed to attract data center investment. The primary financial advantage comes from the market's competitive operational costs compared to other major hubs in Asia.
Natural Disaster Risk
Taichung carries a Low risk profile for natural disasters, as no specific high-frequency or high-impact threats were identified for the metro area as of September 2025. However, any facility in Taiwan must be designed to withstand regional environmental risks.
Key considerations for the area include:
- Earthquake: Taiwan is in a seismically active zone.
- Typhoon: Seasonal typhoons bring strong winds and heavy rainfall.
- Wildfire: Risk is present but typically confined to rural or mountainous areas.
- Inland Flooding: Heavy rainfall can pose a risk in low-lying areas.
