Taiwan Data Center Colocation Market Size, Growth Insights, Colocation Revenue, Demand Forecast 2031

TAIWAN DATA CENTER COLOCATION MARKET SIZE

Taiwan data center colocation market size by revenue was valued at USD 226 million in 2025 and is expected to reach USD 550 million by 2031, growing at a CAGR of 15.98% during the forecast period.

In the APAC region, Taiwan is one of the major colocation data center markets. Taipei leads the way with around 15 existing colocation data center facilities. Chief Telecom, Chunghwa Telecom, Far EasTone Telecommunications, NTT Communications, Taiwan Mobile, and Vantage Data Centers are some of the major colocation providers in Taiwan.

The number of third-party data center facilities in Taiwan is gradually growing. Taiwan is an established market in Asia with around 27 existing colocation data centers spread across the country; most of them are in Taipei, Taiwan.

The Taiwan data center market is witnessing more greenfield developments owing to the ample availability of land for industrial development. With the rising number of data centers, the area per MW for data center construction is estimated to decrease in the next three to four years owing to the increase in the price of industrial land.

The market has a presence of several major cloud operators, which include Amazon Web Services (AWS) and Google. Additionally, major global cloud operators show interest in building data centers in Taiwan. For instance, in October 2025, Microsoft announced plans to launch a new cloud region in Taiwan in 2026 as part of its continued expansion of cloud infrastructure across Asia.

Taiwan has around 16 operational undersea cables, including APCN-2, Apricot, Asia Pacific Gateway (APG), EAC-C2C, Southeast Asia-Japan Cable 2 (SJC2), Taiwan Strait Express-1 (TSE-1), among others. The country is witnessing investments in around six more submarine cables, which are expected to become operational between 2026 and 2029.

TAIWAN DATA CENTER COLOCATION MARKET INSIGHTS BY UTILIZED AREA

The Taiwan data center colocation market by utilized area is expected to reach 1,319.5 thousand square feet by 2031. Taiwan has around seven free trade zones (FTZ), including Port of Kaohsiung, Port of Taichung, Taoyuan International Airport, Port of Taipei, Port of Anping, Port of Keelung, and Port of Suao. These zones are strategically located around major ports and the country's principal international airport and are designed to facilitate international trade, logistics, warehousing, and value-added processing. Businesses operating within these zones benefit from bonded-area customs arrangements and related tax incentives, which can help streamline the movement, storage, and processing of goods for import and export activities. These advantages can also support data center development by improving logistics efficiency for infrastructure equipment and related components.

TAIWAN DATA CENTER COLOCATION MARKET INSIGHTS BY UTILIZED RACKS

The Taiwan data center colocation market by utilized racks is expected to reach 37,650 units by 2031. Data centers in Taiwan use racks ranging from 36U to 52U in height, with the standard width being 19 inches. 42U racks remain the most deployed size due to their versatility in hosting several server types.

As data center capacity expands, increasing investments from hyperscale operators are also expected to propel the adoption of high-density racks to support more efficient data processing in data center facilities.

KEY TAKEAWAYS

1. Colocation Demand by End-User: The cloud & IT sector dominated the colocation demand in Taiwan in 2025, with a share of 42%.
2. Colocation Revenue: Retail colocation accounted for the largest Taiwan data center colocation market share of around 65% in 2025.

RECENT DEVELOPMENTS & NEWS IN THE TAIWAN DATA CENTER COLOCATION MARKET

1. In June 2026, Digital Decarbonization Solutions Platform (DDSP) secured financing from Nomura for the first phase of its 80-MW Taiwan data center campus being developed in partnership with Keppel Ltd. through its Keppel Data Centre Fund II (KDCF II) and pre-leased to a leading hyperscale cloud provider. The investment highlights continued confidence in Taiwan's data center market despite power constraints and limited availability of grid-connected development sites.
2. In 2025, the average rack power density in Taiwan data centers ranged from 6 kW to 7 kW per rack, driven by increasing demands from AI, ML, and cloud computing workloads.

TAIWAN DATA CENTER COLOCATION MARKET TRENDS & DRIVERS

Rising Demand for High-Density Data Centers

High-performance computing (HPC) requirements of modern enterprise applications are driving a transition toward high-density data center infrastructure. Operators in Taiwan are increasingly designing facilities capable of supporting higher rack power densities, modular power systems, and advanced electrical infrastructure to accommodate next-generation workloads.

Demand for high-density racks is increasing as enterprises deploy compute-intensive applications, virtualization platforms, and high-performance enterprise workloads. Moreover, data center operators are investing in scalable power distribution units (PDUs), modular UPS systems, and high-capacity electrical infrastructure to support future capacity expansion.

Government-Led AI Infrastructure Development

Taiwan is accelerating investments in AI and high-performance computing (HPC) infrastructure through government-backed initiatives and sovereign AI programs. The deployment of national AI supercomputing facilities is driving demand for high-density, AI-ready data centers with advanced power and cooling capabilities, creating opportunities for both wholesale and colocation data center operators.

Growing adoption of sovereign AI and AI supercomputing is increasing demand for facilities capable of supporting high-performance GPU clusters, advanced networking, and high-density rack deployments.

TAIWAN DATA CENTER COLOCATION MARKET DRIVERS

Rapid Embrace of Artificial Intelligence and Digitalization Trends

Taiwan's data center market is rapidly embracing AI and automation to boost operational efficiency. Technologies such as AI-driven cooling and workload optimization have become vital to meet the increasing demand for HPC. These advances are essential for supporting the swift growth of industries such as AI, cloud computing, and digital transformation.

Taiwan was ranked tenth in the 2025 Global Digital Competitiveness Index by the International Institute for Management Development (IMD) and ranked fourth regionally in three individual indicators, making it a key player in the global digital economy, attracting foreign investment, and driving innovation across the region.

Increasing Deployment of Liquid Cooling Technology among Data Centers

The growing deployment of AI, machine learning, and high-performance computing (HPC) workloads is significantly increasing rack power densities, making traditional air-cooling systems less efficient. Therefore, data center operators in Taiwan are increasingly adopting liquid cooling technologies to support next-generation GPU clusters, improve energy efficiency, reduce cooling costs, and accommodate high-density AI infrastructure. This trend is accelerating investments in AI-ready colocation facilities and the modernization of existing data centers across the country.

Liquid cooling enables higher compute density while improving power usage effectiveness (PUE), reducing energy consumption for cooling, and allowing operators to maximize available data center space without constructing entirely new facilities.

INDUSTRY RESTRAINT

Location Constraints

Environmental, logistical, regulatory, and infrastructure factors constitute major location constraints for data centers in Taiwan. These limitations could affect data center operations' overall sustainability, scalability, and efficiency.

According to the World Risk Report 2025, Taiwan has identified the top five risks, which include energy supply shortage, labor/talent shortage, geoeconomic confrontation (sanctions, tariffs, investment screening, etc.), armed conflict (interstate, intrastate, proxy wars, coups, etc.), and non-weather-related natural disasters (earthquakes, volcanoes, etc.)

Taiwan is known to be a water-scarce country. It has faced severe droughts, leading to reduced water supply, especially in the northern regions.

TAIWAN DATA CENTER COLOCATION MARKET SEGMENTATION INSIGHTS

INSIGHTS BY COLOCATION DEMAND

Based on the colocation demand by industry, in 2025, the cloud & IT sector dominated the colocation demand in Taiwan in 2025, with a share of 42%. The sector is expected to grow as most e-commerce companies are slated to migrate their workloads to cloud platforms. This demand is estimated to increase during the forecast period as several sectors and organizations are expected to migrate non-critical workloads to cloud platforms as part of their digitalization initiatives.

INSIGHTS BY COLOCATION REVENUE

Based on revenue, the retail colocation accounted for the largest Taiwan data center colocation market share of around 65% in 2025. Retail colocation continues to account for the majority of Taiwan's colocation revenue, supported by strong demand from enterprises, financial services, telecom operators, and government organizations. This strong enterprise and institutional demand is reflected in the presence of major operators such as Chunghwa Telecom, which serves a broad range of customers across the market.

Chunghwa Telecom remains Taiwan's largest colocation operator, managing one of the country's most extensive data center portfolios. The company primarily serves government agencies, financial institutions, enterprises, cloud providers, and telecommunications customers through retail colocation, while also providing wholesale capacity to hyperscale cloud and large enterprise clients.

TAIWAN DATA CENTER COLOCATION MARKET VENDOR LANDSCAPE

Chunghwa Telecom remained the leading colocation operator in Taiwan, supported by its carrier-neutral facilities in Taipei, strong enterprise customer base, and extensive connectivity ecosystem.

Chief Telecom ranked among the leading providers through its nationwide data center portfolio, serving government agencies, financial institutions, cloud providers, and large enterprises.

Limited land availability and high real estate costs in Taipei are encouraging operators to expand into Taoyuan and other surrounding locations, where larger development sites, robust power infrastructure, and proximity to major network hubs support hyperscale and enterprise data center investments.

WHAT'S INCLUDED?

1. A transparent research methodology and insights on the colocation demand and supply aspects of the market.
2. Market size available in terms of utilized white floor area, IT power capacity, and racks.
3. Market size available in terms of Core & Shell Vs Installed Vs Utilized IT Power Capacity, along with the occupancy%.
4. The study of the existing Taiwan data center market landscape, and insightful predictions about data center market size during the forecast period.
5. An analysis of the current and future colocation demand in Taiwan by several industries.
6. The study on sustainability status in Taiwan.
7. Analysis of current and future cloud operations in Taiwan.
8. A snapshot of upcoming submarine cables in Taiwan.
9. Snapshot of existing and upcoming third-party data center facilities in Taiwan.
10. Facilities Covered (Existing): 27
11. Facilities Identified (Upcoming): 5
12. Coverage: 7 Cities
13. Existing vs. Upcoming (White Floor Area)
14. Existing vs. Upcoming (IT Load Capacity)
15. Data center colocation market in Taiwan.
16. Colocation Market Revenue & Forecast (2025-2031)
17. Retail Colocation Revenue (2025-2031)
18. Wholesale Colocation Revenue (2025-2031)
19. Retail Colocation Pricing along with Addons
20. Wholesale Colocation Pricing along with the pricing trends.
21. An analysis of the latest trends, potential opportunities, growth restraints, and prospects for the colocation data center industry in Taiwan.
22. Competitive landscape, including market share analysis by the colocation operators based on IT power capacity and revenue.
23. Vendor landscape of each existing and upcoming colocation operator based on existing/ upcoming count of data centers, white floor area, IT power capacity, and data center location.

TARGET AUDIENCE

1. Data center Real Estate Investment Trusts (REITs)
2. Data center Construction Contractors
3. Data center Infrastructure Providers
4. New Entrants
5. Consultants/Consultancies/Advisory Firms
6. Corporate and Government Agencies