Data Centers in Taichung
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Taichung – Taiwan's Resilient Digital Core
Taichung is an emerging data center market in central Taiwan, offering a strategic alternative to the more congested northern regions. It is an ideal location for organizations requiring robust disaster recovery solutions and low-latency connectivity to Taiwan's significant industrial and manufacturing base. This market ensures high uptime and resilient infrastructure for mission-critical applications.
Taichung: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity, though less dense than primary national hubs like Taipei. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramps are in Taipei; private network extensions are available. |
| Power Cost | NT$2.50-3.50/kWh | Power is reliable, drawing from a mix dominated by fossil fuels. |
| Disaster Risk | Moderate | Primary risks include earthquakes and typhoons, common to the region. |
| Tax Incentives | No | No specific data center incentives are offered, as of September 2025. |
| 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's single data center provides access to a focused group of national and regional carriers, as of September 2025. While not as dense as Taipei, the market supports resilient, multi-carrier strategies for production and disaster recovery workloads.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Taichung, as of September 2025. Businesses connect to the major cloud providers, including AWS, Google Cloud, and Microsoft Azure, via dedicated network links to facilities in Taipei.
Internet Exchange Points (IXPs): Public peering is not a major feature of the Taichung market. Most interconnection occurs through private peering arrangements or is routed through the primary national exchange points located in Taipei, such as TPIX.
Bare Metal: Bare metal server options are available in the region, typically sourced from providers with a presence in Taipei. These services, offered by companies like Hivelocity, can be extended to Taichung to support specific compute requirements.
Power Analysis
Average Cost Of Power: Industrial electricity rates in Taichung generally range from NT$2.50 to NT$3.50 per kWh, as of September 2025. These competitive power costs help manage the operational expenditures for high-density computing environments.
Power Grid Reliability: Taiwan's power grid is well-engineered, and facilities in Taichung benefit from this stability. Data centers in the area are typically supported by redundant power feeds and backup generation systems to ensure high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Taichung are strategically located to serve the Central Taiwan Science Park and the region's extensive precision machinery and manufacturing industries. This proximity provides low-latency performance for critical industrial applications.
Regional Market Reach: From its central location, Taichung offers effective geographic coverage for the entire island of Taiwan. It serves as an excellent secondary or disaster recovery site for businesses with a primary presence in Taipei.
Tax Advantage For Data Centers: Taiwan does not offer specific tax incentives for data center development or operation. The existing tax structure is uniform, and no special abatements are currently in place for this sector.
Natural Disaster Risk
Taichung carries a moderate risk profile for natural disasters, consistent with its location in Taiwan. As there is no specific risk data available for the city, a regional assessment is necessary as of September 2025.
The primary natural hazards affecting the region are:
- Earthquake: Taiwan is in a seismically active zone, and seismic bracing is a standard feature in critical infrastructure construction.
- Typhoon: The island experiences seasonal typhoons, which can bring strong winds and heavy rainfall.
- Flood: Intense rainfall from typhoons can lead to localized or riverine flooding.
- Landslide: Hilly and mountainous terrain, combined with heavy rain, creates conditions for landslides in certain areas.
