Data Centers in Taoyuan
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Taoyuan – Taiwan's Resilient Infrastructure Hub
Taoyuan is a primary data center market in Taiwan, serving enterprises that require robust infrastructure outside the immediate Taipei metro area. Its strategic location, with proximity to international cable landing stations and the country's main international airport, makes it a critical hub for disaster recovery and scalable deployments targeting the Northern Taiwan population.
Taoyuan: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid connectivity, though fewer direct carrier options than Taipei. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access is primarily via private network extension to hubs in Taipei or Hong Kong. |
| Power Cost | NT$2.50–3.50/kWh | Industrial power rates are competitive for the APAC region. |
| Disaster Risk | Low | While seismic activity is a regional factor, specific threat data is minimal. |
| Tax Incentives | No | No specific data center incentives are currently offered by the government. |
| Sales Tax | 5% VAT – as of September 2025 | This is the standard Value Added Tax rate for Taiwan. |
Network & Connectivity Ecosystem
Taoyuan provides a capable connectivity environment, ideal for production and disaster recovery sites that serve Northern Taiwan.
Carrier Density & Carrier Neutrality: The market has a good selection of providers, with access to over 20 national and regional carriers as of September 2025. Most modern facilities operate on a carrier-neutral basis, offering diverse choices for network connectivity.
Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Taoyuan as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure through high-speed private network extensions to nearby interconnection hubs in Taipei.
Internet Exchange Points (IXPs): Peering is primarily handled through major exchanges in Taipei, such as the Taiwan Internet Exchange (TWIX) and the Taipei Internet Exchange (TPIX). These IXPs provide the main points for traffic exchange for the entire country.
Bare Metal: Bare metal server options are available in the broader Taiwan market, often hosted in facilities in Taoyuan or Taipei. Providers like Hivelocity offer dedicated server solutions that give businesses direct control over their hardware infrastructure.
Power Analysis
Taiwan's industrial power infrastructure is well-established, supporting the high-density demands of modern data centers.
Average Cost Of Power: Industrial electricity rates typically range from NT$2.50 to NT$3.50 per kWh as of September 2025. These competitive costs help make large-scale deployments economically viable. The grid relies heavily on fossil fuels, with a growing component of renewable energy sources.
Power Grid Reliability: The power grid serving Taoyuan's industrial zones is well-engineered to support critical manufacturing and technology facilities. Data centers in the area are backed by multi-substation support, redundant feeder lines, and standard N+1 or 2N UPS systems to ensure high levels of uptime.
Market Access, Business & Tax Climate
Taoyuan’s strategic location and business environment make it a compelling choice for data center investment and colocation.
Proximity To Key Business Districts: Data centers in Taoyuan are strategically located near key industrial parks and the Taoyuan International Airport (TPE), Taiwan's largest. This makes it an ideal location for logistics, manufacturing, and international businesses needing low-latency connectivity.
Regional Market Reach: The market provides effective service coverage for the densely populated northern Taiwan region, including the capital, Taipei. Its location is also strategic for connecting to submarine cable landing stations on the northwest coast.
Tax Advantage For Data Centers: Taiwan's current tax policy does not offer specific incentives for data center construction or operation. The financial climate is straightforward, without special tax credits or abatements that are sometimes found in other markets.
Natural Disaster Risk
Taoyuan has a low overall risk profile for natural disasters, although regional factors require consideration.
Based on available information as of September 2025, the market does not face significant, frequent threats from major natural disasters. However, like all of Taiwan, facilities must be built to high seismic standards to mitigate risks associated with earthquakes. The region is also susceptible to seasonal typhoons, which modern data center designs account for with hardened building shells and reliable backup systems.
