Taiwan Data Center Server Market Trends & Share 2031

Taiwan Data Center Server Market Size and Share

Taiwan Data Center Server Market Snapshot & Metrics Overview
Study Period	2020 - 2031
Forecast Data Period	2026 - 2031
Base Year Market Size (2025)	USD 0.53 Billion
Market Size (2026)	USD 0.59 Billion
Market Size (2031)	USD 1.49 Billion
CAGR (2026 - 2031)	20.37%
Market Concentration	High
Major Players *Disclaimer: Major Players sorted in no particular order

Taiwan Data Center Server Market Analysis by Mordor Intelligence

The Taiwan Data Center Server Market size is projected to be USD 0.53 billion in 2025, USD 0.59 billion in 2026, and reach USD 1.49 billion by 2031, growing at a CAGR of 20.37% from 2026 to 2031.

Taiwan’s data center server market is gaining momentum as AI computing, cloud infrastructure, and high-performance computing (HPC) expand. Demand is moving toward GPU-accelerated AI servers, rack-scale systems, and high-density computing platforms. At the same time, conventional CPU-based servers remain essential for enterprise applications, virtualization, and cloud workloads. Taiwan holds a strong position in server manufacturing and system integration, supported by companies such as Foxconn, Quanta Computer, and Wistron, as well as its extensive semiconductor and component supply chain.

Additionally, Foxconn and South Korea SK Group discussed potential collaboration in AI servers, data centers, and energy solutions. These developments reflect a broader shift from traditional server assembly to integrated AI infrastructure that combines computing, networking, storage, and thermal management.

Note: Market size and forecast figures in this report are generated using Mordor Intelligence’s proprietary estimation framework, updated with the latest available data and insights as of January 2026.

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Taiwan Data Center Server Market Trends and Insights

IT & Telecommunication Segment To hold A Major Share in the Market

Cloud and telecom are anticipated to contribute the largest market shares among end-user industries. Due to the increasing data generation, which drives the demand for quicker processing and effective servers, the cloud segment generates significant revenue. Numerous cloud service providers, including Cadence, Google, Siemens, Azure, AWS, and Synopsys, joined forces with TSMC to form a cloud alliance. Other big corporations also intend to enter the Taiwanese cloud industry in the future.
As Taiwan develops into a regional hub for many enterprises, they are investing in cloud computing, thus increasing the demand for local data centers. 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.
The average monthly mobile data usage is forecast to increase from 22 GB in 2022 to about 41 GB in 2029, driven by the growing consumption of high-bandwidth online entertainment and social media content over smartphones. On average, Taiwanese people use about 6.5 social media platforms per person. They spend about two hours on social media on a daily basis. The active social network penetration in Taiwan is about 89.4%, and the number of social media users increased from 0.4 million from 2020 to 2022. This enables more use of data in data centers and, thus, increasing demand for data center servers.
With an increase in smartphone users in Taiwan, the demand for telecom services is expected to grow. The Taiwanese electronics market has expanded due to the growing semiconductor sector. Taiwan currently produces close to 21% of the world's semiconductors. Over the past few decades, Taiwan has dramatically improved its semiconductor output, becoming a prominent participant in the sector.
The use of digital consumer products such as smartphones and the data generated via them may allow telecom companies to securely manage and store large volumes of data and scale up the storage capacity as per their requirements. Such instances in the market create more demand for data center manufacturers in the coming years.

Taiwan Data Center Server Market : Number of smartphone users, Millions, Taiwan, 2021-2028 — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Blade Servers To Grow At A Faster Pace In The Coming Years

Reduced power consumption and high processing power contribute to the blade servers in data centers.
Single or multiple server blades can be inserted or removed without distressing another running system. It reduces hardware costs, which is likely to entice industry players to adopt the technology, thereby fueling market growth. Additionally, each server blade does not consist of a distinct infrastructure and chassis, owing to which the product is relatively cheaper as compared to other solutions.
To cater to end-user needs, top companies such as Cisco and Dell are focusing on blade servers in data centers.
The growing adoption of technologies such as cloud computing, artificial intelligence (AI), IT services, Internet penetration, and social media users by businesses are propelling the use of servers in data centers.
Blade servers are generally designed with energy efficiency in mind, helping to reduce power consumption and operational costs.

Taiwan Data Center Server Market : Number of social media users, Millions, Taiwan, 2021-2027 — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Competitive Landscape

The Taiwan data center server market includes a mix of global server vendors and Taiwan-based original design manufacturers (ODMs) and original equipment manufacturers (OEMs). Leading international vendors include Dell Technologies, Hewlett-Packard Enterprise, Cisco Systems, and Fujitsu. Taiwan-based companies such as Foxconn, Quanta Cloud Technology, Wistron, Wiwynn, Inventec, and Compal also play a key role in server design, manufacturing, and rack-scale system integration.

Competition is increasingly driven by AI server capabilities, GPU integration, power efficiency, thermal management, production capacity, and relationships with hyperscale cloud providers. Taiwan’s strong electronics manufacturing ecosystem also reinforces its position in the global server supply chain.

Compal Electronics opened its Daxi AI Server Manufacturing Center in Taiwan, focusing production on AI server systems and rack-level solutions. The facility is expected to begin contributing to revenue progressively from Q4 2026.

Taiwan Data Center Server Industry Leaders

Dell Inc.
Hewlett Packard Enterprise
Cisco Systems Inc.
Kingston Technology Company Inc.
Fujitsu Limited
*Disclaimer: Major Players sorted in no particular order

Taiwan Data Center Server Market Concentration — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Read Analysis of Taiwan Data Center Server Companies

Recent Industry Developments

June 2026: Wistron reported that AI infrastructure accounted for 79% of its revenue in Q1 2026, reflecting rapid growth in its AI-related business. This highlights the growing demand for AI servers and integrated computing infrastructure.
November 2025: Foxconn announced plans to develop a 27 MW AI data center in Taiwan using NVIDIA’s GB300 NVL72 platform, with deployment planned for the first half of 2026.

Table of Contents for Taiwan Data Center Server Industry Report

1. INTRODUCTION

1.1 Study Assumption & Market Definition
1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Dynamics

4.1 Market Overview
4.2 Market Drivers
- 4.2.1 Increase in construction of new data centers, development of internet infrastructure
- 4.2.2 Increasing adoption of cloud and IoT services
4.3 Market Restraints
- 4.3.1 Rising CapEx for data center construction
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact

5. MARKET SEGMENTATION

5.1 Form Factor
- 5.1.1 Blade Server
- 5.1.2 Rack Server
- 5.1.3 Tower Server
5.2 End-User
- 5.2.1 IT & Telecommunication
- 5.2.2 BFSI
- 5.2.3 Government
- 5.2.4 Media & Entertainment
- 5.2.5 Other End-User

6. COMPETITIVE LANDSCAPE

6.1 Company Profiles
- 6.1.1 Dell Inc.
- 6.1.2 Hewlett Packard Enterprise
- 6.1.3 Cisco Systems Inc.
- 6.1.4 Kingston Technology Company Inc.
- 6.1.5 Nvidia Corporation
- 6.1.6 Fujitsu Limited
- 6.1.7 NEC Corporation
- 6.1.8 Oracle Corporation
- 6.1.9 Atos SE
- 6.1.10 Hitachi Systems
*List Not Exhaustive

7. INVESTMENT ANALYSIS

8. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

Taiwan Data Center Server Market Report Scope

A data center server is basically a high-capacity computer without peripherals like monitors and keyboards. It is a hardware unit installed inside a rack, having a central processing unit (CPU), storage, and other electrical and networking equipment, making them powerful computers that deliver applications, services, and data to end-user devices.

The Taiwan data center server market is segmented by form factor (blade server, rack server, and tower server) and by end-user (IT and telecommunication, BFSI, government, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

Form Factor

Taiwan Data Center Server Market segmentation breakdown
Blade Server
Rack Server
Tower Server

End-User

Taiwan Data Center Server Market segmentation breakdown
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-User

Taiwan Data Center Server Market segmentation breakdown
Form Factor	Blade Server
	Rack Server
	Tower Server
End-User	IT & Telecommunication
	BFSI
	Government
	Media & Entertainment
	Other End-User

Key Questions Answered in the Report

How big is the Taiwan Data Center Server Market?

The Taiwan Data Center Server Market size is expected to reach USD 0.59 billion in 2026 and grow at a CAGR of 20.37% to reach USD 1.49 billion by 2031.

What is the current Taiwan Data Center Server Market size?

In 2026, the Taiwan Data Center Server Market size is expected to reach USD 0.59 billion.

Who are the key players in Taiwan Data Center Server Market?

Dell Inc., Hewlett Packard Enterprise, Cisco Systems Inc., Kingston Technology Company Inc. and Fujitsu Limited are the major companies operating in the Taiwan Data Center Server Market.

What years does this Taiwan Data Center Server Market cover, and what was the market size in 2025?

In 2025, the Taiwan Data Center Server Market size was estimated at USD 0.53 billion. The report covers the Taiwan Data Center Server Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Taiwan Data Center Server Market size for years: 2025, 2026, 2027, 2028, 2029, 2030 and 2031.

Page last updated on: October 27, 2026

Author: Technology & Telecom Practice

Taiwan Data Center Server Market Report

Statistics for the 2026 Taiwan Data Center Server market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Taiwan Data Center Server analysis includes a market forecast outlook for 2026 to 2031 and historical overview. Get a sample of this industry analysis as a free report PDF download.