Taiwan Data Center Market

Taiwan Data Center Market Overview

The Taiwan Data Center Market size was valued at USD 643.7 million in 2023, and is predicted to reach USD 1865.9 million by 2030, at a CAGR of 16.4% from 2024 to 2030. The data center market, also known as the network infrastructure market, covers the entire lifecycle of specialized infrastructure for hosting computing systems, from initial planning and construction to ongoing operation and maintenance. This market includes a variety of components such as servers, storage systems, and networking equipment, together provide services such as cloud computing and connectivity solutions.

Currently, the industry is experiencing widespread adoption of cloud services and the rise of edge computing aimed at reducing latency. Key trends shaping the market include a strong emphasis on sustainability, increased cybersecurity concerns, the integration of hybrid and multi-cloud approaches, and the growing influence of 5G networks. These trends highlight the industry's proactive efforts to meet the rising demand for scalable, efficient, and secure data processing and storage solutions amid the ongoing digital transformation. According to projections by the United States International Trade Commission, the data processing and storage market is expected to grow from USD 56 billion in 2020 to USD 90 billion by 2025.

Robust Semiconductor Industry Accelerates Taiwan Data Center Market Growth

Taiwan’s globally dominant semiconductor industry—responsible for a substantial share of the world’s chip production—continues to be a foundational driver of data center market growth. As a core enabler of digital infrastructure, the strength of Taiwan’s chip manufacturing ecosystem supports the proliferation of advanced technologies such as AI, machine learning, 5G, and high-performance computing, all of which demand large-scale, low-latency data processing capabilities.

The ongoing expansion of edge computing, IoT applications, and big data analytics across industrial and consumer markets is significantly increasing the volume and velocity of data, placing greater pressure on the underlying digital infrastructure. The presence of a thriving semiconductor sector not only ensures supply chain reliability for data center components but also enhances Taiwan’s position as a strategic location for high-density, compute-intensive operations in the broader APAC digital ecosystem.

Strategic Initiatives and Market Expansion Propel Growth

The Taiwan data center market is further bolstered by a growing wave of strategic infrastructure initiatives, public-private partnerships, and favorable policy support aimed at accelerating digital transformation. The government’s continued focus on AI innovation, cybersecurity resilience, and cloud adoption is creating a stable foundation for investment and long-term growth.

Domestic and international stakeholders are increasingly deploying capital into the market, expanding data center capacity to accommodate rising demand for hyperscale, colocation, and hybrid multi-cloud environments. This trend is supported by Taiwan’s commitment to enhancing network connectivity, regulatory alignment, and the creation of digitally focused industrial parks designed to support next-generation infrastructure.

High Initial Investment and Regulatory Constraints Pose Market Challenges

Despite its rapid expansion, the Taiwan data center market faces notable challenges—foremost among them being the high capital expenditure required for establishing and operating advanced facilities. Building modern data centers involves substantial upfront investments in land acquisition, high-density computing equipment, power infrastructure, and advanced cooling systems. These financial demands can act as significant entry barriers for small and medium-sized enterprises, limiting market diversity and competition.

Moreover, Taiwan's growing commitment to sustainability and energy efficiency has led to increasingly stringent environmental regulations. Operators must continuously invest in green technologies, renewable energy integration, and innovative cooling solutions to remain compliant with evolving standards. While these efforts align with national climate objectives, they also increase operational complexity and cost, potentially slowing down the pace of new developments—particularly in urban areas where land use and energy consumption are heavily regulated.

Integration of Edge Computing Presents Lucrative Opportunity for Market Expansion 

The integration of edge computing into Taiwan’s digital infrastructure represents a significant growth avenue for the data center market. By bringing data processing closer to the point of generation, edge computing reduces latency, improves network responsiveness, and supports real-time applications across sectors such as IoT, smart manufacturing, autonomous systems, and augmented reality (AR).

This decentralized infrastructure model alleviates pressure on centralized cloud networks by distributing workloads, thereby enhancing scalability, resilience, and cost efficiency. It also offers added security benefits by enabling localized data processing, which is particularly critical for industries managing sensitive or mission-critical information.

Competitive Landscape

The key market players operating in the Taiwan data center industry include Amazon Web Services, Inc., Chunghwa Telecom, Zenlayer, Chief Telecom, Taiwan Mobile (TWM Cloud IDC), Psychz Networks, Google, Equinix, Vantage Data Centers, NTT Data (Global Data Centers Division), and others.

Taiwan Data Center Market Key Segments

By Infrastructure

• Hardware

  • IT Hardware    

    • Servers

    • Storage Systems

    • Networking Equipment

  • Power Infrastructure Hardware    

    • Uninterruptible Power Supplies (UPS)

    • Generators

    • Automatic Transfer Switches

    • Power Distribution Units (PDUs)

  • Mechanical Infrastructure Hardware    

    • Computer-Room Air Conditioners (CRAC/CRA Units)

    • Chillers

    • Racks

    • Cable Management Systems

  • Safety & Security Hardware    

    • Fire Suppression Systems

    • Physical Security Systems (CCTV, access controls)

• Software        

  • DCIM & Monitoring    

  • Automation & Orchestration

  • Backup & Disaster Recovery    

  • Security Software    

  • Virtualization Software    

  • Analytics & Reporting Software    

  • Other Software    

• Services        

  • Planning & Professional Services    

    • Site & Building Design

    • System/Infrastructure Engineering

    • Professional Advisory (compliance, energy audits)

  • Integration & Deployment Services    

    • Electrical & Mechanical Installation

    • Commissioning & Acceptance Testing

  • Operation & Support Services    

    • Preventive & Corrective Maintenance

    • Facilities Management / Remote Monitoring

    • Support Services (helpdesk, onsite SLA support)

  • Hosting & Managed Services    

    • Colocation & Cloud Hosting Services

    • Virtual/Private Hosting Platforms

By Type            

• Enterprise Data Centers        

• Colocation Data Centers        

• Cloud Data Centers        

• Hyperscale Data Centers        

• Edge Data Centers        

• Micro Data Centers        

• Others        

By Data Center Rating            

• Tier I        

• Tier II        

• Tier III        

• Tier IV        

By Size             

• Small Data Centers        

• Med-sized Data Centers        

• Large Data Centers    

By Power Capacity    

• <0.01 GW (Small)

• 0.01-0.05 GW (Medium)

• 0.05-0.1 GW (Large)

• 0.1-0.5 GW (Hyperscale)

• >0.5 GW (Mega-campus)    

By Server Rack Density            

• <10kW        

• 10-19kW        

• 20-29kW        

• 30-39kW        

• 40-49kW        

• >50kW        

By Data Center Redundancy    

• N (No Redundancy)

• N+1 (Single-fault tolerant)

• N+2 (Dual-fault tolerant)

• 2N (Full duplication)

• 2N+1 (Concurrently maintainable + extra spare)

• 3N/2N+2 (Multi-backup fault tolerant)

By PUE Outlook            

• Less than 1.2        

• 1.2 - 1.5        

• 1.5 - 2.0        

• Greater than 2.0        

By Design Outlook            

• Traditional

• Containerized        

• Modular        

By End User            

• Cloud Service Provider        

• Technology Provider        

• Telecom        

• Healthcare        

• BFSI        

• Retail & E-commerce        

• Entertainment & Media        

• Government        

• Energy        

• Others

Key Players

• Amazon Web Services, Inc.

• Chunghwa Telecom

• Zenlayer

• Chief Telecom

• Taiwan Mobile (TWM Cloud IDC)

• Psychz Networks

• Google

• Equinix

• Vantage Data Centers

• NTT Data (Global Data Centers Division)

REPORT SCOPE AND SEGMENTATION: