Data Centers in Taichung
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Taichung – High-Performance Edge for Central Taiwan
Executive Summary
Taichung serves as the primary infrastructure anchor for Taiwan’s high-tech manufacturing and precision machinery sectors. It is a strategic choice for enterprises requiring low-latency connectivity to the Central Taiwan Science Park or a geographically distinct disaster recovery site from Taipei. This market offers a reliable environment that directly supports the island's most critical industrial output.
Taichung: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable regional links with strong backbone ties to Taipei. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest on-ramp hub is Taipei. |
| Power Cost | $0.09/kWh, as of September 2025 | Competitive industrial rates for heavy manufacturing workloads. |
| Disaster Risk | Moderate (34.0/100) – as of September 2025 | Primary concerns include seismic activity and seasonal typhoons. |
| Tax Incentives | No | No local data center specific incentives are currently active. |
| Sales Tax | 5.00% VAT – as of September 2025 | Standard national value-added tax rate applies. |
Network & Connectivity Ecosystem
Taichung provides a steady interconnection environment for the region's industrial requirements. The infrastructure ensures that central Taiwan remains integrated with global trade routes.
Carrier Density & Carrier Neutrality: Carrier count: over 10 as of September 2025. The market consists of a blend of national telecommunications leaders and regional fiber providers, offering diverse routing for mission-critical applications.
Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions as of September 2025. While no direct hyperscale on-ramps are physically located in the city, Taichung maintains high-speed private extensions to Taipei. These links provide reliable access to major on-ramps for AWS, Google Cloud (GCP), and Microsoft Azure.
Internet Exchange Points (IXPs): Most local peering occurs through the Taipei Internet Exchange (TPIX) or via private peering at major carrier hotels. This arrangement keeps domestic traffic within the island, minimizing latency for local users and industrial sensors.
Bare Metal: Dedicated, high-performance compute resources are available through providers such as Hivelocity and Latitude.sh. These options support specialized workloads that require physical hardware isolation for security or processing speed.
Power Analysis
Taichung’s energy profile is built around its proximity to massive industrial zones, prioritizing consistency for heavy users.
Average Cost Of Power: $0.09/kWh, as of September 2025. This rate is competitive within the East Asian corridor, providing a predictable cost base for colocation. The grid relies on a mix of approximately 86% fossil fuels, 6% nuclear, and 8% renewables.
Power Grid Reliability: The local grid is well-engineered with redundant configurations to meet the high stakes of the Central Taiwan Science Park. Data centers in this district typically benefit from multi-substation support to maintain high uptime levels during peak industrial demand.
Market Access, Business & Tax Climate
Taichung is a strategic bridge for businesses operating between northern and southern Taiwan.
Proximity To Key Business Districts: Facilities are centrally located to serve the Taichung Industrial Park and the Central Taiwan Science Park. This proximity is critical for semiconductor and precision machinery firms that depend on edge computing for real-time data processing and automation.
Regional Market Reach: A facility in Taichung effectively reaches over 2.8 million local residents. It also serves as the primary secondary site for Taipei-based enterprises looking for geographic separation in their disaster recovery strategies.
Tax Advantage For Data Centers: Taiwan provides a stable regulatory environment for technology firms. General industrial policy focuses on long-term stability and infrastructure reliability to support the manufacturing sector.
Natural Disaster Risk
Taichung faces a moderate environmental risk profile, defined by the regional geological and climatic patterns of the island.
Moderate (34.0/100) – as of September 2025
- Earthquake: Moderate risk due to the presence of active fault lines throughout Taiwan.
- Typhoon: Moderate risk from seasonal high winds and heavy precipitation.
- Riverine Flood: Low to Moderate risk in low-lying areas during extreme weather events.
- Landslide: Moderate risk in the mountainous terrain surrounding the city, which can impact peripheral infrastructure.
Other natural hazards are considered minor or not listed for this metropolitan area. All assessments are based on regional historical data and current environmental monitoring.
