Data Centers in Tainan
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Tainan – Connectivity for Taiwan's Industrial Core
Tainan serves as a strategic digital infrastructure location for enterprises operating within Southern Taiwan's extensive technology and manufacturing parks. For companies requiring low-latency connectivity to supply chains and industrial operations in the region, Tainan provides a viable alternative or disaster recovery location to the primary market of Taipei.
Tainan: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong national and regional connectivity, but not a primary international peering hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest cloud access points are in Taipei; connections are made via private network extensions. |
| Power Cost | $0.09 – $0.12/kWh | Grid is primarily fossil-fuel powered (~86%), with stable industrial park supply. |
| Disaster Risk | Moderate | Key risks include seismic activity and typhoons, requiring resilient infrastructure planning. |
| Tax Incentives | No | No specific national data center incentives have been identified as of September 2025. |
| Sales Tax | 5% VAT – as of September 2025 | Standard value-added tax rate applies to equipment and services. |
Network & Connectivity Ecosystem
Tainan is a secondary connectivity market in Taiwan, with most major network traffic and peering occurring in Taipei. However, the ecosystem is sufficient for supporting the region's significant industrial base.
Carrier Density & Carrier Neutrality: Carrier access is focused, with services available from Taiwan's major national providers, as of September 2025. While not a hyper-dense market, colocation facilities offer redundant connections suitable for enterprise and manufacturing workloads.
Direct Cloud On-Ramps: As of September 2025, there are no public direct cloud on-ramps located in Tainan. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure through the primary hub in Taipei, utilizing private network links or wavelength services for secure, high-performance access.
Internet Exchange Points (IXPs): Public peering is not a feature of the Tainan market. Most network peering is handled privately or routed through the major Internet Exchanges in Taipei, such as TPIX.
Bare Metal: Bare metal server availability is centered in Taipei but can be extended to facilities in Tainan. Providers like Hivelocity and phoenixNAP offer dedicated server solutions that can serve regional needs from the capital.
Power Analysis
Taiwan's power infrastructure is well-established, though it relies heavily on imported fuel sources.
Average Cost Of Power: Industrial power rates in Tainan typically range from $0.09 – $0.12/kWh, as of September 2025. This competitive pricing helps manage the significant operational costs associated with high-density computing. The grid mix is approximately 86% fossil fuels, 8% renewables, and 6% nuclear power.
Power Grid Reliability: The power grid serving Tainan's industrial zones is engineered for high availability to support critical manufacturing processes. Data centers in these areas benefit from this stability and often have multi-substation support for redundancy.
Market Access, Business & Tax Climate
Tainan's value proposition is tied to its proximity to one of Asia's most important technology manufacturing clusters.
Proximity To Key Business Districts: Data centers in Tainan are strategically located to serve the Southern Taiwan Science Park (STSP). This provides low-latency connectivity for companies in the semiconductor, optoelectronics, precision machinery, and biotechnology industries.
Regional Market Reach: The market effectively serves southern Taiwan, including the major port city of Kaohsiung. It is also an excellent location for a secondary or disaster recovery site for businesses with a primary footprint in Taipei.
Tax Advantage For Data Centers: Taiwan does not offer specific national tax incentives for data center construction or operation. The financial climate is predictable, with standard corporate taxes applying to all businesses.
Natural Disaster Risk
Tainan has a moderate risk profile for natural disasters, consistent with its location in the Western Pacific.
As of September 2025, the area faces notable risk from seismic activity and tropical cyclones. The primary hazards include:
- Earthquake: Taiwan is in a highly active seismic zone, making earthquake-resistant building design a standard and critical requirement for data centers.
- Typhoon: The region is susceptible to strong typhoons annually, which can bring high winds and intense rainfall.
- Flooding: Heavy rainfall associated with typhoons can lead to localized or riverine flooding.
- Landslide: In sloped areas, intense rain can increase the risk of landslides.
