Data Centers in Taoyuan

Taoyuan – Strategic Colocation for Global Supply Chains

Executive Summary

Taoyuan serves as the primary mission-critical hub for enterprises requiring immediate proximity to the semiconductor and hardware manufacturing corridors of Taiwan. This market acts as a vital bridge between global supply chains and digital infrastructure, ensuring high-speed local processing for the world’s most significant technology exporters.

Taoyuan: At A Glance

Network & Connectivity Ecosystem

As an infrastructure analyst, I see Taoyuan as a strategic satellite to the Taipei metro area. It provides the physical space that denser urban centers lack while maintaining high-performance links to the national core.

Carrier Density & Carrier Neutrality: Carrier count: over 15 as of September 2025. The ecosystem includes a mix of domestic incumbents and regional players, providing diverse paths for site-to-site connectivity and local loops.

Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions as of September 2025. While local facilities do not host native cloud nodes, most providers offer high-capacity transport to Taipei, the primary gateway for AWS, Google Cloud (GCP), and Microsoft Azure.

Internet Exchange Points (IXPs): Most peering occurs via TPIX or TWIX in Taipei, which serve as the primary exchange points for Northern Taiwan. Local traffic is often backhauled to these hubs to ensure broad reach and low latency.

Bare Metal: Dedicated hardware options are available through providers such as phoenixNAP or Hivelocity. These options allow firms to deploy specialized workloads without managing physical server maintenance.

Power Analysis

Average Cost Of Power: Industrial electricity in this region is approximately $0.09/kWh as of September 2025. This pricing remains attractive for large-scale deployments compared to other Tier 1 Asian markets, supporting the heavy cooling requirements of local hardware. The current energy mix is approximately 86% fossil fuels, 6% nuclear, and 8% renewables.

Power Grid Reliability: The grid in major industrial corridors is well-engineered with redundant supply lines. Most high-tier facilities utilize multi-substation support to maintain high uptime during peak summer demand periods.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers here are located near the Longtan and Hsinchu Science Parks. This proximity is vital for manufacturers that require real-time data processing and low-latency control for automated production lines.

Regional Market Reach: Taoyuan serves as the central logistics point for Northern Taiwan. It effectively covers a population of over 7 million people within a 50-kilometer radius, including the greater Taipei metropolitan area.

Tax Advantage For Data Centers: While specific local incentives are absent, the stable national tax environment provides predictable operational costs. The primary financial benefit remains the lower land and utility costs compared to the capital city, which helps customers maximize their infrastructure budget.

Natural Disaster Risk

Taoyuan maintains a Moderate (55.0/100) risk profile as of September 2025. While it avoids some of the coastal vulnerabilities of other regions, it remains subject to broader geographic threats.

• Earthquake: High risk due to regional fault lines; facilities are built to stringent seismic standards.
• Typhoon: Moderate risk during the summer months, requiring reliable drainage and wind-resistant construction.
• Riverine Flooding: Moderate risk in specific low-lying industrial zones during heavy rainfall.
• Heatwave: Increasing frequency, putting additional stress on data center cooling systems and grid stability.
• Landslide: Minor risk, primarily limited to the more mountainous southern sections of the district.