Taiwan Data Center Market - Investment Analysis & Growth Opportunities 2024-2029

MARKET OUTLOOK

The Taiwan data center market will witness investments of USD 3.44 billion by 2029, growing at a CAGR of 15.26% during the forecast period. Taiwan is among the strongly growing markets in the APAC region in terms of digitalization, largely contributed to by its proximity to mainland China, connectivity, and other factors. For instance, in January 2023, Zoom Video Communications, a cyber-conferencing firm, opened its first cloud data center in Taiwan.

The government of Taiwan launched the National Optic Fiber Backbone Infrastructure (NOFBI) to create a secure and digital highway for business applications and Value-Added Services (VAS). This infrastructure expansion boosted international traffic, reduced internet costs, and improved internet speeds. Also, the government launched the Investment in Taiwan initiative to support the growth of foreign investment in the country, which is expected to attract global and regional data center operators.

The Taiwan data center market is connected to around 13 existing submarine cables, such as APCN-2, Cross-Straits Cable Network (CSCN), EAC-C2C, Trans-Pacific Express (TPE) Cable System, Taiwan Strait Express-1 (TSE-1), and others. Further, the Taiwanese government actively works to increase the availability of industrial areas in the country by establishing industrial parks, with which the government offers assistance for land acquisition, assistance permits, and other benefits for investors.

KEY HIGHLIGHTS

• Taipei is the hub for data center development and foreign investments in the Taiwan data center market. Other cities are also expected to grow in the coming years. For instance, in March 2024, Vantage Data Center announced receiving over USD 64 million in loans from Taiwanese banks to construct its first facility, TPE11, in Taipei.
• The Taiwanese government launched several digitalization initiatives and other projects to attract foreign market investments. For instance, according to Taiwan government FDI statistics, from January to December 2023, Taiwan recorded 568 outbound investment projects (excluding Mainland China), totaling USD 23.58 billion. This reflects a 4.03% rise in project numbers and a 136.67% increase in investment amount compared to the same period in 2022.
• The Taiwanese government is taking initiatives to increase the country's power availability and reliability. For instance, it set up a target for producing around 20% of electricity from renewable sources, 30% from coal, and 50% from gas by 2025 under its 20-30-50 plan. The government plans to generate around 60%–70% of electricity from renewable energy sources by 2050.
• NTT DATA, Acer Edc, Taiwan Mobile, Far EasTone Telecommunications, Chunghwa Telecom, Chief Telecom, and Chunghwa Telecom are prominent colocation providers in the Taiwan data center industry. The market is led by local operators, but global operators are expected to increase their investments and activity during the forecast period.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size is available in terms of investment, area, power capacity, and Taiwan colocation market revenue.
• An assessment of the data center investment in Taiwan by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across cities in the country.
• A detailed study of the existing Taiwan data center market landscape, an in-depth market analysis, and insightful predictions about market size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Taiwan
  • Facilities Covered (Existing): 15
  • Facilities Identified (Upcoming): 05
  • Coverage: 6+ Cities
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in Taiwan
  • Colocation Market Revenue & Forecast (2023-2029)
  • Retail vs Wholesale Colocation Revenue
  • Retail & Wholesale Colocation Pricing
• The Taiwan data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
• A transparent research methodology and the analysis of the demand and supply aspects of the industry.

VENDOR LANDSCAPE

• The Taiwan data center market in terms of IT infrastructure is dominated by global vendors such as Lenovo, IBM, Fujitsu, Hewlett Packard Enterprise, Dell Technologies, Cisco Systems, Broadcom, and others, which has resulted in the high availability of efficient and advanced infrastructure in the market.
• Regarding support infrastructure, multiple global vendors have a presence in the market and have been offering their products and services to data centers for several years. Some major Taiwan data center vendors include Eaton, Cummins, Caterpillar, ABB, Airedale, Legrand, and others.
• In terms of construction contractors, the market has local and global contractors who have been providing their services for multiple data center projects over the years. For instance, DLB Associates has provided its services to Google data centers in the country.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
  • Taipei
  • Other Cities
• List of Upcoming Facilities in the Region (Area and Power Capacity)
  • Taipei
  • Other Cities

REPORT COVERAGE:

This report analyses the Taiwan data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

• IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
• Electrical Infrastructure
  • UPS Systems
  • Generators
  • Transfer Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Rack Cabinets
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers & Dry Coolers
  • Economizers & Evaporative Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression Systems
  • Physical Security
  • Data Center Infrastructure Management (DCIM)
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV

VENDOR LANDSCAPE

• IT Infrastructure Providers: Atos, Broadcom, Cisco Systems, Dell Technologies, Extreme Networks, Fujitsu, Hitachi Vantara, Hewlett Packard Enterprise (HPE), IBM, Juniper Networks, Lenovo, MiTAC Holdings, NetApp, Pure Storage, Quanta Cloud Technology, Super Micro Computer, Wiwynn.
• Data Center Construction Contractors & Sub-Contractors: AECOM, CTCI, Data Knit, DLB Associates, MAA Group, M+W Group, Pacific Engineers and Constructors (PECL).
• Support Infrastructure Providers: ABB, Airedale, Alfa Laval, ATEN, Caterpillar, Cummins, Delta Electronics, EAE, Eaton, Green Revolution Cooling (GRC), HITEC Power Protection, Johnson Controls, Legrand, Mitsubishi Electric, Rittal, Schneider Electric, Socomec, Siemens, STULZ, TECO Electric & Machinery, Trane, and Vertiv.
• Data Center Investors: Acer e-Enabling Data Center, Chief Telecom, Chunghwa Telecom, Far EasTone Telecommunications, NTT Communications, and Taiwan Mobile.
• New Entrants: Empyrion DC, SC Zeus Data Centers, and Vantage Data Centers.