Data Centers in Taoyuan
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Taoyuan – Strategic Hub for Northern Taiwan
Taoyuan is a primary data center market for enterprises requiring low-latency infrastructure with direct access to Taiwan's industrial and technology core. This market is engineered for businesses that need resilient colocation to serve the dense population centers of northern Taiwan, ensuring high availability and performance for critical applications.
Taoyuan: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity with good subsea cable access. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is via private network extension to the nearest hub in Taipei. |
| Power Cost | NT$3.00–4.50/kWh | Sourced from a fossil fuel-heavy grid. Cost management is key. |
| Disaster Risk | Low – as of September 2025 | Primary risks are seismic activity and typhoons, which facilities are built for. |
| Tax Incentives | No | No specific data center incentives are currently offered. |
| Sales Tax | 5% VAT – as of September 2025 | Standard Value Added Tax applies to equipment and services. |
Network & Connectivity Ecosystem
Taoyuan's connectivity is robust, leveraging its proximity to Taipei and significant subsea cable landing points that serve the broader North Asian region.
Carrier Density & Carrier Neutrality: The market provides access to over 20 domestic and international carriers, as of September 2025. Carrier-neutral facilities are available, offering diverse options for building redundant networks.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Taoyuan itself. Businesses connect to major cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure via private network links to data centers in Taipei.
Internet Exchange Points (IXPs): Peering is primarily handled through the Taiwan Internet Exchange (TPIX) in nearby Taipei. Access to TPIX allows for efficient traffic exchange between local networks, reducing latency for end-users in Taiwan.
Bare Metal: Bare metal server options are available from providers in the region. Global suppliers like Hivelocity and Leaseweb can service deployments in Taiwan, providing dedicated compute for performance-sensitive workloads.
Power Analysis
Average Cost Of Power: Industrial electricity rates typically fall between NT$3.00 and NT$4.50 per kWh, as of September 2025. While not the lowest in the region, the stable supply justifies the cost for mission-critical operations. The power mix is predominantly fossil fuels (~86%), with minor contributions from nuclear and renewable sources.
Power Grid Reliability: The power grid supporting Taoyuan's industrial zones is well-engineered for high availability. Data centers are typically connected to multiple substations, ensuring redundant power feeds to support continuous uptime requirements.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Taoyuan’s data centers are strategically located near the Hsinchu Science Park and the financial and business districts of Taipei. This proximity provides low-latency connectivity for Taiwan’s semiconductor, manufacturing, and financial services industries.
Regional Market Reach: The market effectively serves the nearly 10 million people in the Taipei–Keelung–Taoyuan metropolitan area. Its location makes it an ideal disaster recovery site for businesses with a primary presence in Taipei.
Tax Advantage For Data Centers: Taiwan does not currently offer specific tax incentives for data center development or operation. Companies should plan based on standard corporate tax rates, as the broader tariff environment may influence hardware import costs.
Natural Disaster Risk
Taoyuan carries a Low overall risk profile for natural disasters, as of September 2025. While the national risk profile includes several hazards, modern data centers in the area are designed to mitigate these specific threats.
Key environmental risks include:
- Earthquake: Taiwan is in a seismically active zone, and facilities are constructed to modern seismic codes to withstand significant ground motion.
- Typhoon / Hurricane: Seasonal typhoons bring strong winds and heavy rain. Data center infrastructure is hardened against these conditions.
- Wildfire: The risk is minimal in the industrial and urban areas where data centers are located.
- Tornado: Tornadoes are not a significant weather threat in this region.
