Taiwan Data Center Market

Taiwan Data Center Market Overview:

The Taiwan data center market is projected to exhibit a growth rate (CAGR) of 11.70% during 2024-2032. The market is driven by an increasing demand for cloud services, the rise of digital transformation initiatives, government support for technology infrastructure, and growing investments from global tech companies in the region.

Taiwan Data Center Market Trends:

Growing Demand for Cloud Services

The Taiwan data center market is being driven by the increasing demand for cloud services. As businesses continue to digitize their operations, the need for scalable, secure, and efficient cloud solutions has surged. Taiwan, being a technology hub, has witnessed a significant uptick in cloud adoption across various sectors, including finance, healthcare, and e-commerce. Major cloud service providers are expanding their infrastructure in Taiwan to meet this growing demand. For instance, in June 2024, Amazon Web Services (AWS) announced plans to launch a new infrastructure region in Taiwan by early 2025 to meet the growing demand for cloud services in the Asia-Pacific region. AWS also plans to invest billions of dollars in Taiwan over the next 15 years, enabling local firms to leverage advanced AWS technologies such as computing, storage, databases, and AI. This expansion not only bolsters the local data center market but also attracts further investment, making Taiwan a key player in the Asia-Pacific cloud services ecosystem. For instance, according to industry reports, Taiwan is rapidly emerging as a dominant force in the data center market, with investments projected to grow from $1.47 billion in 2023 to $3.45 billion by 2029, at a CAGR of 15.26%.

Government Initiatives and Investments

Taiwan's government has been proactive in supporting the growth of the data center market through various initiatives and investments. Policies aimed at promoting digital transformation, along with incentives for technology companies to establish operations in Taiwan, have created a favorable environment for data center expansion. The government’s focus on 5G deployment, AI, and IoT is also driving the need for robust data center infrastructure to support these technologies. Furthermore, Taiwan's strategic location in Asia makes it an attractive destination for international companies looking to establish regional data centers, further boosting the market. For instance, in March 2023, Taiwan officially opened the Taiwan AI Center of Excellence (Taiwan AICoE) under the National Science and Technology Council. This center is focused on advancing Taiwan's artificial intelligence capabilities and serves as a platform for formulating ethical guidelines for AI use and fostering international collaborations. The center intends to leverage Taiwania 2, a supercomputer, to test AI applications and aims to develop a "Taiwanese ChatGPT." The government is emphasizing ethical AI governance, aligning with global initiatives, and the center is expected to produce tangible results by the end of 2023. The launch highlights Taiwan's commitment to becoming a leader in AI development.

Taiwan Data Center Market News:

• In June 2024, Apple unveiled plans to establish a data center in Taiwan, partnering with third-party manufacturers, including Foxconn. This initiative is anticipated to significantly boost Taiwan's economy, potentially contributing up to NT$100 billion (around US$3 billion) through investments in AI servers, green energy, and associated hardware. This expansion is part of Apple's broader strategy to grow its data center network, which already includes facilities in the U.S., Denmark, and China.
• In July 2024, Vantage Data Centers announced the grand opening of its first data center in Taipei, Taiwan (TPE11). This 16MW facility, located in the Taoyuan district, is designed to meet the growing demand for hyperscale data centers, supporting cloud transformation, AI applications, and high-density deployments. The facility features advanced sustainability measures, including industry-leading power usage effectiveness (PUE) and low water usage effectiveness (WUE). It is powered by Taiwan Power Company, which is focused on renewable energy and low-carbon initiatives.

Taiwan Data Center Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on component, type, enterprise size, and end user.

Component Insights:

• Solution
• Services
   

The report has provided a detailed breakup and analysis of the market based on the component. This includes solution and services.

Type Insights:

• Colocation
• Hyperscale
• Edge
• Others
   

A detailed breakup and analysis of the market based on the type have also been provided in the report. This includes colocation, hyperscale, edge, and others.

Enterprise Size Insights:

• Large Enterprises
• Small and Medium Enterprises
   

The report has provided a detailed breakup and analysis of the market based on the enterprise size. This includes large enterprises and small and medium enterprises.

End User Insights:

• BFSI
• IT and Telecom
• Government
• Energy and Utilities
• Others
   

A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes BFSI, IT and telecom, government, energy and utilities, and others.

Regional Insights: 

• Northern Taiwan
• Central Taiwan
• Southern Taiwan
• Eastern Taiwan
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern Taiwan, Central Taiwan, Southern Taiwan, and Eastern Taiwan.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Taiwan Data Center Market Report Coverage:

Key Questions Answered in This Report:

• How has the Taiwan data center market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Taiwan data center market?
• What is the breakup of the Taiwan data center market on the basis of component?
• What is the breakup of the Taiwan data center market on the basis of type?
• What is the breakup of the Taiwan data center market on the basis of enterprise size?
• What is the breakup of the Taiwan data center market on the basis of end user?
• What are the various stages in the value chain of the Taiwan data center market? 
• What are the key driving factors and challenges in the Taiwan data center?
• What is the structure of the Taiwan data center market and who are the key players?
• What is the degree of competition in the Taiwan data center market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Taiwan data center market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Taiwan data center market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Taiwan data center industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.