| Study Period | 2019 - 2031 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2031 |
| Market Size (2025) | USD 0.94 Billion |
| Market Size (2031) | USD 1.51 Billion |
| CAGR (2025 - 2031) | 8.16 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Taiwan Data Center Construction Market Analysis
The Taiwan Data Center Construction Market size is estimated at USD 0.94 billion in 2025, and is expected to reach USD 1.51 billion by 2031, at a CAGR of 8.16% during the forecast period (2025-2031).
Under Construction IT Load Capacity: The upcoming IT load capacity of the Taiwanese data center construction market is expected to reach more than 300 MW by 2030.
Under Construction Raised Floor Space: The country's construction of raised floor space is expected to increase by more than 1.5k sq. ft by 2030.
Planned Racks: The country's total number of racks to be installed is expected to reach more than 77,000 units by 2030.
Planned Submarine Cables: There are close to 14 submarine cable systems connecting Taiwan, and many are under construction.
Taiwan Data Center Construction Market Trends
Tier 3 Data Center Holds Majority Share
- Taiwan's data center construction market is experiencing consistent growth, driving service providers to adopt tier 3 standards. Consequently, tier 3 colocation facilities are sprouting up nationwide. As of 2023, Taiwan boasted over 20 tier-3 data centers.
- In the coming years, tier 1 and 2 data centers are projected to face a deceleration, with some even witnessing diminished growth. This trend is largely attributed to prolonged and irregular outages. Tier 3 data centers depend on a solitary cooling and electricity channel, boasting an uptime of around 99.67%. Despite being more budget-friendly, the restricted functionalities of tier 1 and 2 facilities are pushing end-users toward more sophisticated tier 3 and 4 options.
- Large enterprises, especially content-oriented companies, favor tier 3 data centers for their robust infrastructure, which includes features like remote assistance, disaster recovery, and low latency, leading to reduced downtime. Consequently, tier 3 facilities are poised to lead the market in the coming years.
- Colocation data centers are increasingly adopting tier 3 and 4 standards. In Taiwan, a significant proportion of data center facilities adhere to these tiers. This is attributed to their robust power and cooling infrastructures, coupled with seamless maintenance procedures that do not necessitate downtime.
- Taiwan's government actively backs digital transformation (DT), positioning itself as a pivotal player in the nation's economic expansion. Initiatives such as the Digital Nation and Innovative Economic Development Program (DIGI+) 2017–2025 are set to propel the market's tier 3 segment during the forecast period.
- The growth of tier 3 data centers in Taiwan is poised to be driven by factors like companies prioritizing high-quality content and advanced graphics for online gaming, alongside a surge in online shopping and digital payment users.
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IT and Telecom Segment to Hold Significant Market Share
- Taiwan stands out as a rapidly expanding digital market in the APAC region, bolstered by its close ties to mainland China, robust connectivity, and other key factors. Notably, major players like Apple, Microsoft, and AWS are venturing into Taiwan, setting up data centers and rolling out diverse cloud services.
- As smartphone usage surges in Taiwan, there is a corresponding uptick in the demand for telecom services. The National Communications Commission (NCC) of Taiwan reports that smartphone penetration hit 88.4% in Q1 2024. This rise in digital consumer product usage, especially smartphones, is generating vast amounts of data. Telecom firms are leveraging this data to bolster their storage capabilities, ensuring the company can scale up as needed.
- The increasing demand for high-speed data access, driven by cloud and IoT applications like smart home energy management, is set to propel the adoption of 5G services. With 5G networks boasting superior speeds, enhanced capacity, and reduced latency compared to their 4G LTE counterparts, the subscriber base is expanding rapidly. Notably, in Taiwan, 20% of the population is already utilizing 5G services.
- In Q3 2023, Taiwan led the region with a median 5G download speed of 263.35 Mbps, surpassing nations like Vietnam, China, Hong Kong, the Philippines, and Japan.
- Between 2021 and 2025, the government plans to inject TWD 49 billion (USD 1.8 billion) into the Forward-looking Infrastructure Development Program. This funding aims to bolster efforts in rolling out 5G infrastructure nationwide, with a view to boosting the industry's momentum. Consequently, these initiatives are poised to drive up the demand for data centers in the country.
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Taiwan Data Center Construction Industry Overview
The Taiwanese data center construction market features key players like M+W Group and CTCI Group, among others, leading to a slightly fragmented landscape. Notably, major data center corporations are intensifying their investments in Taiwan, with a primary focus on acquisitions, expansion, and building new facilities. This uptick in investments directly correlates with the growing demand for advanced data processing and storage capabilities.
- March 2024: Vantage Data Centers secured a USD 64 million loan to finance its inaugural data center in Taiwan. This loan, equivalent to about TWD 2 billion, was facilitated by CTBC Bank and Cathay United Bank. Notably, this marks the first instance of a data center operator in Taiwan securing financing for a hyperscale data center.
- July 2024: Vantage Data Centers inaugurated its inaugural data center in Taiwan. Situated on a two-acre plot in Taiwan's Taoyuan district, this 16 MW facility is designed to cater to cloud and high-density deployments, with the added capability of supporting liquid cooling. Named TPE11, this five-story facility covers an expansive 215,000 sq. ft (19,975 sq. m).
Taiwan Data Center Construction Market Leaders
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M+W Group
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CTCI Group
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Pacific Engineers and Constructors (PECL)
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RED Engineering
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Ruentex Engineering & Construction Co., Ltd.
- *Disclaimer: Major Players sorted in no particular order
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Taiwan Data Center Construction Market News
- January 2023: Chunghwa, a Taiwanese telecommunications company, unveiled its blueprint to construct a data center in Taoyuan City. The proposed structure will comprise a basement and five above-ground floors spanning approximately 6,277 square meters. The project is projected to incur costs of around USD 53 million, presenting promising prospects for market vendors.
- January 2023: Singapore's Empyrion DC, a data center operator, is set to construct a new data center in Taipei, dubbed TP1. The upcoming facility is projected to boast an IT load capacity of 40 MW. The project, slated to commence in 2023-24, aims for completion by 2026-27.
Taiwan Data Center Construction Industry Segmentation
Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.
The Taiwanese data center construction market is segmented by infrastructure (electrical infrastructure (power distribution solution (PDU, transfer switches, switchgear, power panels and components, and other power distribution solutions)), power backup solution (UPS, generators), service – design & consulting, integration, support & maintenance)), mechanical infrastructure (cooling systems (immersion cooling, direct-to-chip cooling, rear door heat exchanger, in-row and in-rack cooling)), racks, and other mechanical infrastructure)), and general construction)), tier type (tier 1 and 2, tier 3, and tier 4), and end user (banking, financial services & insurance, it and telecommunications, government & defense, healthcare, and other end users). The market sizes and forecasts are provided in USD value for all the above segments.
| By Infrastructure | By Electrical Infrastructure | Power Distribution Solution | PDU - Basic & Smart - Metered & Switched solutions | |
| Transfer Switches | Static | |||
| Automatic (ATS) | ||||
| Switchgear | Low-Voltage | |||
| Medium-Voltage | ||||
| Power Panels and Components | ||||
| Other Power Distribution Solutions | ||||
| Power Backup Solutions | UPS | |||
| Generators | ||||
| Service - Design & Consulting, Integration, Support & Maintenance | ||||
| By Mechanical Infrastructure | Cooling Systems | Immersion Cooling | ||
| Direct-To-Chip Cooling | ||||
| Rear Door Heat Exchanger | ||||
| In-Row and In-Rack Cooling | ||||
| Racks | ||||
| Other Mechanical Infrastructure | ||||
| General Construction | ||||
| By Tier Type | Tier 1 and 2 | |||
| Tier 3 | ||||
| Tier 4 | ||||
| By End User | Banking, Financial Services, and Insurance | |||
| IT and Telecommunications | ||||
| Government and Defense | ||||
| Healthcare | ||||
| Other End Users | ||||
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Taiwan Data Center Construction Market Research Faqs
How big is the Taiwan Data Center Construction Market?
The Taiwan Data Center Construction Market size is expected to reach USD 0.94 billion in 2025 and grow at a CAGR of 8.16% to reach USD 1.51 billion by 2031.
What is the current Taiwan Data Center Construction Market size?
In 2025, the Taiwan Data Center Construction Market size is expected to reach USD 0.94 billion.
Who are the key players in Taiwan Data Center Construction Market?
M+W Group, CTCI Group, Pacific Engineers and Constructors (PECL), RED Engineering and Ruentex Engineering & Construction Co., Ltd. are the major companies operating in the Taiwan Data Center Construction Market.
What years does this Taiwan Data Center Construction Market cover, and what was the market size in 2024?
In 2024, the Taiwan Data Center Construction Market size was estimated at USD 0.86 billion. The report covers the Taiwan Data Center Construction Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Taiwan Data Center Construction Market size for years: 2025, 2026, 2027, 2028, 2029, 2030 and 2031.
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Taiwan Data Center Construction Industry Report
Statistics for the 2025 Taiwan Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Taiwan Data Center Construction analysis includes a market forecast outlook for 2025 to 2031 and historical overview. Get a sample of this industry analysis as a free report PDF download.
