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Taiwan Data Center Market Size

The Taiwan Data Center Market is projected to experience significant growth in its market size over the forecast period. The expansion is driven by the increasing demand for colocation services and the modernization of data center facilities, particularly tier 3 and tier 4 centers. Government initiatives aimed at establishing Taiwan as a key digital hub and the adoption of advanced technologies in cloud-based services are further propelling the market's growth. The tier 3 segment, with its high market share due to robust uptime and redundancy features, is expected to expand alongside the rapidly growing tier 4 segment, which is responding to the rising need for colocation spaces.

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Market Size of taiwan data center Industry

Taiwan Data Center Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Volume (2024) 213.8 MW
svg icon Market Volume (2029) 304.2 MW
svg icon Largest Share by Tier Type Tier 3
svg icon CAGR (2024 - 2029) 7.31 %
svg icon Fastest Growing by Tier Type Tier 4
svg icon Market Concentration Medium

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Taiwan Data Center Market Analysis

The Taiwan Data Center Market size is estimated at 213.8 MW in 2024, and is expected to reach 304.2 MW by 2029, growing at a CAGR of 7.31%. Further, the market is expected to generate colocation revenue of USD 226.2 Million in 2024 and is projected to reach USD 346 Million by 2029, growing at a CAGR of 8.88% during the forecast period (2024-2029).

USD 226.15 Million

Market Size in 2024

USD 346.03 Million

Market Size in 2029

5.7%

CAGR (2017-2023)

8.8%

CAGR (2024-2029)

IT Load Capacity

213.8 MW

Value, IT Load Capacity, 2024

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The government is encouraging Taiwanese businesses to go digital. It is also dedicated to creating a cloud-based smart digital blueprint for local partners and connecting top-tier creative technologies for a variety of industries

Total Raised Floor Space

Sq. Ft. 1.06 M

Volume, Raised Floor Space, 2024

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The introduction of digital development-focused strategies like Digital Nation and Innovative Economic Development Program (DIGI+) 2017–2025 are expected to boost the demand of the data storage spaces over the forecast period.

Installed Racks

53,447

Volume, Installed Racks, 2024

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The total number of installed racks is expected to reach 76,040 by 2029. Taipei City receives 50% of all foreign investment, is home to over 70% of foreign businesses, and is expected to house the maximum number of racks over the years.

# of DC Operators & DC Facilities

10 and 30

Volume, DC Facilities, 2024

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There are 30 colocation data center facilities in Taiwan. Taipei is the major hotspot in the country. Some factors contributing to the growth of the data center in the country are expansion of 5G and other technological advancements.

Leading Market Player

33.8%

Market Share, Chief Telecom Inc. , 2023

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Chief Telecom Inc. has three buildings for its data center facilities. These facilities have 30,000 sq. m capacity and have an average of 16.14 MW IT load capacity with average racks of about 5382 units.

Tier 3 data center holds majority market share in 2023, Tier 4 data center is fastest growing

  • The tier 3 data center facilities in the Taiwanese market reached an IT load capacity of 151.35 MW in 2022. It is expected to register a CAGR of 4.45% and reach 205.35 MW by 2029. Tier 4 data center facilities in the Taiwanese market reached an IT load capacity of 23.59 MW in 2022 and are expected to register a CAGR of 23.20% to reach a capacity of 101.65 MW by 2029.
  • A significant growth rate is anticipated for tier 3 and tier 4 data centers. With an uptime of 99.98% and N+1 redundancies, tier 3 data centers account for the highest market share. In an effort to establish their respective nations as important digital centers, governments in Taiwan and other countries are also implementing initiatives and measures to draw IT-based investments into their respective nations. The Smart City program is being utilized by the government as part of its roadmap for digital transformation. These projects' fundamental tenets include the requirement for data center modernization as well as the outsourcing of edge data centers to a third party for latency-sensitive applications. These factors are helping the tier 3 segment of the Taiwanese data center market to expand.
  • Over the coming years, tier 4 data centers will experience tremendous growth. This is because there are more companies offering cloud-based services, which has led to more companies building facilities to offer colocation space with the latest technological advancements.
Taiwan Data Center Market

Taiwan Data Center Industry Segmentation

Taipei are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.

  • The tier 3 data center facilities in the Taiwanese market reached an IT load capacity of 151.35 MW in 2022. It is expected to register a CAGR of 4.45% and reach 205.35 MW by 2029. Tier 4 data center facilities in the Taiwanese market reached an IT load capacity of 23.59 MW in 2022 and are expected to register a CAGR of 23.20% to reach a capacity of 101.65 MW by 2029.
  • A significant growth rate is anticipated for tier 3 and tier 4 data centers. With an uptime of 99.98% and N+1 redundancies, tier 3 data centers account for the highest market share. In an effort to establish their respective nations as important digital centers, governments in Taiwan and other countries are also implementing initiatives and measures to draw IT-based investments into their respective nations. The Smart City program is being utilized by the government as part of its roadmap for digital transformation. These projects' fundamental tenets include the requirement for data center modernization as well as the outsourcing of edge data centers to a third party for latency-sensitive applications. These factors are helping the tier 3 segment of the Taiwanese data center market to expand.
  • Over the coming years, tier 4 data centers will experience tremendous growth. This is because there are more companies offering cloud-based services, which has led to more companies building facilities to offer colocation space with the latest technological advancements.
Hotspot
Taipei
Rest of Taiwan
Data Center Size
Large
Massive
Medium
Mega
Small
Tier Type
Tier 1 and 2
Tier 3
Tier 4
Absorption
Non-Utilized
Utilized
By Colocation Type
Hyperscale
Retail
Wholesale
By End User
BFSI
Cloud
E-Commerce
Government
Manufacturing
Media & Entertainment
Telecom
Other End Users
Others End User
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Taiwan Data Center Market Size Summary

The Taiwan data center market is experiencing significant growth, driven by advancements in technology and increased demand for digital infrastructure. The market is characterized by a robust expansion in both tier 3 and tier 4 data center facilities, with tier 3 centers holding the largest market share due to their high uptime and redundancy features. The government's initiatives, such as the Smart City program, are pivotal in promoting digital transformation and attracting IT investments, which in turn are fueling the modernization of data centers and the outsourcing of edge data centers for latency-sensitive applications. This strategic focus on enhancing digital capabilities is contributing to the overall growth of the data center market in Taiwan.

The market is moderately consolidated, with major players like Chief Telecom Inc., Chunghwa Telecom Co., Ltd., Far EasTone Telecommunications Co., Ltd., Taiwan Mobile Co., Ltd., and Telstra Corporation Limited dominating the landscape. The increasing smartphone penetration and the rapid adoption of 5G services are further propelling the demand for data centers, as these technologies require high-speed data access for various applications, including cloud and IoT services. The government's financial support for 5G infrastructure development underscores the commitment to enhancing telecommunications capabilities, which is expected to have a positive impact on the data center market's growth trajectory.

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Taiwan Data Center Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)

    1. 1.1 Hotspot

      1. 1.1.1 Taipei

      2. 1.1.2 Rest of Taiwan

    2. 1.2 Data Center Size

      1. 1.2.1 Large

      2. 1.2.2 Massive

      3. 1.2.3 Medium

      4. 1.2.4 Mega

      5. 1.2.5 Small

    3. 1.3 Tier Type

      1. 1.3.1 Tier 1 and 2

      2. 1.3.2 Tier 3

      3. 1.3.3 Tier 4

    4. 1.4 Absorption

      1. 1.4.1 Non-Utilized

      2. 1.4.2 Utilized

        1. 1.4.2.1 By Colocation Type

          1. 1.4.2.1.1 Hyperscale

          2. 1.4.2.1.2 Retail

          3. 1.4.2.1.3 Wholesale

        2. 1.4.2.2 By End User

          1. 1.4.2.2.1 BFSI

          2. 1.4.2.2.2 Cloud

          3. 1.4.2.2.3 E-Commerce

          4. 1.4.2.2.4 Government

          5. 1.4.2.2.5 Manufacturing

          6. 1.4.2.2.6 Media & Entertainment

          7. 1.4.2.2.7 Telecom

          8. 1.4.2.2.8 Other End Users

          9. 1.4.2.2.9 Others End User

Taiwan Data Center Market Size FAQs

The Taiwan Data Center Market is projected to register a CAGR of 7.31% during the forecast period (2024-2029).

Chief Telecom Inc., Chunghwa Telecom Co.,Ltd., Far EasTone Telecommunications Co., Ltd., Taiwan Mobile Co., Ltd. and Telstra Corporation Limited are the major companies operating in the Taiwan Data Center Market.

Taiwan Data Center Market Report Snapshots

Taiwan Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029