Taiwan Data Center Colocation Market - Supply and Demand Analysis, 2026-2031 | AI, Cloud, and Hyperscale Demand to Drive 15.98% CAGR and High-Density Investment

Boost ROI through FTZ tax and logistics benefits, liquid cooling that cuts energy costs, and expansion beyond Taipei for larger sites and robust power access

Dublin, Oct. 06, 2026 (GLOBE NEWSWIRE) -- "Taiwan Data Center Colocation Market - Supply & Demand Analysis 2026-2031" has been added to ResearchAndMarkets.com's offering.

The Taiwan data center colocation market is expected to expand at a compound annual growth rate of 15.98% by revenue from 2025 to 2031. Taiwan is an established APAC data center market, supported by rising cloud adoption, artificial intelligence workloads, digital transformation, and demand for high-performance computing infrastructure.

Taiwan currently has approximately 27 operational third-party colocation data centers, with around 15 facilities located in Taipei. Five additional facilities have been identified as upcoming across the market. Major colocation providers include Chunghwa Telecom, Chief Telecom, Far EasTone Telecommunications, NTT DATA, Taiwan Mobile, Vantage Data Centers, Acer eDC, Anson Network, eASPNet, and other regional operators.

Market Capacity and Colocation Demand

The Taiwan data center colocation market is forecast to reach 1,319.5 thousand square feet of utilized area and 37,650 utilized racks by 2031. Facilities commonly deploy racks ranging from 36U to 52U, while 42U remains the standard choice because of its compatibility with multiple server configurations. As hyperscale, cloud, AI, and machine learning requirements increase, operators are expected to deploy more high-density racks and scalable electrical systems.

• The cloud & IT sector accounted for 42% of Taiwan's colocation demand in 2025.
• Retail colocation generated approximately 65% of market revenue in 2025.
• Average rack power density ranged from 6 kW to 7 kW per rack in 2025.
• The market includes 27 existing facilities and five identified upcoming facilities across seven cities.

Retail colocation remains the leading revenue segment, driven by enterprises, Financial Institutions , telecommunications companies, government agencies, and cloud service providers. Demand is expected to rise as organizations move non-critical workloads to cloud platforms and expand digital operations. Wholesale colocation is also gaining momentum as hyperscale cloud providers seek large-scale, AI-ready capacity.

AI and High-Density Infrastructure Drive Market Growth

Artificial intelligence, machine learning, cloud computing, and high-performance computing are reshaping Taiwan's data center infrastructure requirements. Operators are investing in high-capacity power distribution units, modular UPS systems, advanced networking, and scalable electrical infrastructure to accommodate compute-intensive applications and GPU clusters.

Government-backed AI infrastructure programs and sovereign AI initiatives are creating further opportunities for wholesale and colocation operators. Taiwan's position as a major technology and semiconductor hub strengthens demand for facilities capable of supporting national supercomputing systems, advanced enterprise applications, and Next -generation cloud platforms.

Taiwan ranked tenth in the 2025 Global Digital Competitiveness Index published by the International Institute for Management Development. Its strong regional performance reinforces the country's role in the global digital economy and supports continued foreign investment in cloud, AI, connectivity, and data center development.

Liquid Cooling Adoption Accelerates

Higher rack power densities are increasing the adoption of liquid cooling technology across Taiwan data centers. Traditional air-cooling systems are becoming less efficient for AI and high-performance computing environments, encouraging operators to modernize existing facilities and design new sites around advanced thermal management systems.

Liquid cooling supports higher compute density, improves power usage effectiveness, lowers cooling-related energy consumption, and enables operators to maximize available white floor space. These benefits are expected to accelerate investment in AI-ready colocation capacity throughout the forecast period.

Investment and Development Activity

In June 2026, Digital Decarbonization Solutions Platform secured financing from Nomura for the first phase of an 80-MW Taiwan data center campus. The project is being developed with Keppel Ltd. through Keppel Data Centre Fund II and has been pre-leased to a leading hyperscale cloud provider. The financing demonstrates continued Investor confidence despite grid constraints and limited availability of development sites with secured power connections.

Limited land supply and high real estate costs in Taipei are encouraging developers to consider Taoyuan and surrounding locations. These areas offer larger sites, access to power infrastructure, proximity to network hubs, and connectivity to Taiwan's principal international airport.

Taiwan also has seven free trade zones located at the Port of Kaohsiung, Port of Taichung, Taoyuan International Airport, Port of Taipei, Port of Anping, Port of Keelung, and Port of Suao. Their customs arrangements, tax incentives, and logistics capabilities can support the import, storage, and deployment of data center infrastructure and related equipment.

Market Constraints

Taiwan data center development faces environmental, regulatory, logistical, and infrastructure challenges. Key risks identified in the World Risk Report 2025 include energy supply shortages, labor and talent constraints, geoeconomic confrontation, armed conflict, and non-weather-related natural disasters such as earthquakes. Water scarcity is another concern, particularly following severe droughts that have affected supply in northern Taiwan.

Power availability remains a critical factor for upcoming hyperscale and colocation projects. Competition for grid-connected land may influence project schedules, site selection, construction costs, and long-term capacity planning.

Competitive Landscape

Chunghwa Telecom remains Taiwan's largest colocation operator, supported by an extensive facility portfolio, strong connectivity, and demand from government agencies, Financial Institutions , enterprises, telecommunications customers, cloud providers, and hyperscale clients. Chief Telecom is also a leading provider, with a nationwide portfolio serving public-sector organizations, financial services companies, cloud platforms, and large enterprises.

New operators entering or expanding in Taiwan include Empyrion Digital, Epoch Digital, Keppel Data Centres, and SC Zeus Data Centers. Their investments are expected to strengthen competition and add capacity for hyperscale, enterprise, and AI workloads.

Report Coverage

The Taiwan data center colocation market report assesses utilized white floor area, IT power capacity, rack deployment, occupancy, retail and wholesale colocation revenue, pricing trends, sustainability, cloud operations, and submarine cable developments. It also evaluates existing and upcoming facilities, demand by industry, operator market share, investment opportunities, growth restraints, and forecasts from 2025 to 2031.

The research is designed for data center Real Estate Investment Trusts, construction contractors, infrastructure providers, investors, new entrants, consultants, advisory firms, enterprises, and government agencies seeking insight into Taiwan's evolving colocation market.

Key Topics Covered

1. ABOUT THE ANALYST

2. DATA CENTER CAPABILITIES

3. RESEARCH METHODOLOGY

4. MARKET SCOPE

5. MARKET DEFINITIONS

6. MARKET SNAPSHOT

• Colocation Market Snapshot

7. SUPPLY & DEMAND ANALYSIS

• Existing Vs. Upcoming Data Center Facilities
• Market by IT Power Capacity (Core & Royal Dutch Shell , Installed, & Utilized (MW))
• Colocation Demand by Industry
• Market by Utilized Area
• Market by Utilized Racks

8. MARKET GROWTH FACTORS

• Factors attracting Colocation Investments in Taiwan
• Impact of AI on Data Center Industry in Taiwan
• Sustainability Status in Taiwan
• Cloud Connectivity & Sustainability Goals of Data Center Companies
• Cloud On-ramps & Investments in Indonesia
• Submarine Cables & Inland Connectivity

9. COLOCATION REVENUE & PRICING ANALYSIS

• Colocation Market by Revenue
• Retail Vs. Wholesale Colocation
• Retail Colocation Pricing and Addons
• Wholesale Colocation Pricing
• Key Pricing Trends

10. MARKET DYNAMICS

• Key Trends
• Key Enablers/Drivers
• Key Restraints

11. COMPETITIVE LANDSCAPE

• Competitive Landscape by Colocation Operators
• Market Share by Colocation Revenue
• Market Share by IT Power Capacity
• Existing Colocation Operators
• New Operators

12. QUANTITATIVE SUMMARY

A selection of companies mentioned in this report includes, but is not limited to:

• Chunghwa Telecom
• Chief Telecom
• Anson Network
• Acer eDC
• Far EasTone Telecommunications
• Vantage Data Centers
• NTT DATA
• Taiwan Mobile
• eASPNet
• Empyrion Digital
• Epoch Digital
• Keppel Data Centres
• SC Zeus Data Centers

For more information about this report visit https://www.researchandmarkets.com/r/536v84

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