Taiwan Hyperscale Data Center Market Size and Share

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Taiwan Hyperscale Data Center Market Analysis by Mordor Intelligence

The Taiwan hyperscale data center market size stood at USD 626.32 million in 2025 and is forecast to expand to USD 1,160.55 million by 2031 at a 10.83% CAGR, accompanied by installed IT load growth from 344.91 MW to 660.75 MW. Taiwan’s position at the crossroads of Asia-Pacific subsea cables, its sovereign artificial-intelligence programs, and more than USD 5 billion of hyperscaler commitments underpin this trajectory. Hyperscaler self-build facilities dominate current capacity, yet liquid-cooled colocation suites aimed at GPU clusters are scaling rapidly. Green-energy power-purchase agreements, real-time payment regulations, and semiconductor industry synergies are reshaping site-selection logic and facility design. Operators are adopting modular construction, direct-to-chip cooling, and battery storage to navigate power-grid caps, water-recycling mandates, and persistent GPU supply shortages

Key Report Takeaways

  • By data center type, hyperscale self-builds led with 61% of the Taiwan hyperscale data center market share in 2024, while hyperscale colocation is projected to grow at 21.40% CAGR through 2031.
  • By component, IT infrastructure accounted for 43.50% of 2024 spending; liquid-cooling systems are advancing at a 32.80% CAGR.
  • By tier standard, Tier III facilities captured 68% share of the Taiwan hyperscale data center market size in 2024; Tier IV nodes are expanding at an 18.20% CAGR.
  • By end-user industry, cloud and IT services represented 46.20% share in 2024, while AI start-ups are set to post 27.60% CAGR.
  • By data center size, massive (greater than 25 MW and less than equal to 60 MW) facilities commanded 49.70% share of the Taiwan hyperscale data center market size in 2024 and mega (greater than 60 MW) sites are projected to grow at 24.90% CAGR.

Segment Analysis

By Data Center Type: Colocation Gains Traction against Self-Build Dominance

Self-build campuses controlled 61% of the Taiwan hyperscale data center market share in 2024 as global cloud firms optimized custom layouts for AI workloads. In value terms, the segment added USD 5 billion of cumulative investment commitments through 2025. The Taiwan hyperscale data center market size for colocation, however, is set to expand at 21.40% CAGR as enterprises seek rapid, capex-light access to GPU clusters. Colocation providers are differentiating through sovereign-cloud compliance zones, on-site renewable PPAs, and sub-1.33 PUE guarantees. Strategic alliances such as Taiwan Mobile and Vantage Data Centers combine telco fiber backbones with global colocation design playbooks. Revenue models are shifting toward high-density per-rack pricing, while service catalogs now include managed Kubernetes, model-training sandboxes, and inter-campus cloud fabrics.

The Taiwan hyperscale data center industry also witnesses telecom incumbents converting underutilized 5G edge shelters into regional core nodes that backhaul traffic to hyperscale colocation hubs. Such hybrid topologies lower latency for AI inference at the last mile and improve asset monetization of legacy telco estates. Colocation’s growth is constrained by grid connection queues and land scarcity in Greater Taipei, so operators increasingly pre-lease space in central and southern science parks where renewable capacity is abundant. Investor confidence is seen in the first greenfield project financing for hyperscale colocation executed in 2024, signaling maturing capital-market appetite for long-dated data-infrastructure assets.

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Note: Segment shares of all individual segments available upon report purchase

By Component: Liquid-Cooling Systems Surge within Hardware-Dominant Spend

IT hardware captured 43.50% of 2024 spend, reflecting USD 200,000 plus price tags for fully-populated 8-GPU servers. The Taiwan hyperscale data center market size allocated to mechanical and cooling systems is climbing rapidly, with liquid-cooling solutions forecast to grow at 32.80% CAGR. Operators pivot to direct-to-chip plates, rear-door exchangers, and immersion baths to support 50-100 kW racks. Liquid loops reduce hot-aisle delta-T, enabling higher chip clocks and improved energy efficiency. Electrical systems remain core, with integrated-busway power distribution and 98%-efficient UPS topologies supporting Tier IV redundancy requirements. Commoditized air handlers are being displaced by coolant distribution units and smart leak-detection arrays.

Supply-chain realignment favors Taiwanese ODMs that bundle servers, coolant manifolds, and power skids into factory-integrated modules. Component demand also encompasses high-speed fiber, silicon photonics switches, and precision environmental sensors. The Taiwan hyperscale data center industry is therefore evolving toward a vertically integrated supply ecosystem where OEMs, component vendors, and construction contractors collaborate on design-for-manufacture principles.

By Tier Standard: Tier IV Ascends alongside Established Tier III Base

Tier III halls accounted for 68% of installed capacity in 2024, delivering N+1 redundancy suited to general cloud workloads. Regulatory trends, however, push mission-critical applications into Tier IV nodes that guarantee 99.995% availability. Tier IV’s 18.20% CAGR is anchored by fintech and real-time payment mandates and by AI inferencing for fraud analytics that cannot tolerate downtime. The Taiwan hyperscale data center market size tied to Tier IV is further buoyed by sovereign-cloud zones demanding physically separate and concurrently maintainable power and cooling paths. Operators justify higher capital intensity through premium pricing and multi-year take-or-pay contracts with banks and ministries.

Tier-IV builds emphasize fault-tolerant switchgear, cross-campus dark-fiber rings, and 2N mechanical infrastructure. Adoption of modular prefabricated power rooms accelerates time to market and simplifies maintenance. As Tier IV footprints expand, some providers retain a blended portfolio of Tier III and Tier IV halls within the same campus to match workload criticality with appropriate cost structures.

By End-User Industry: AI Start-Ups Outpace Core Cloud Segment

Cloud and IT services contributed 46.20% of 2024 revenue as international hyperscalers and domestic IaaS vendors provisioned mainstream enterprise workloads. The Taiwan hyperscale data center market size serving AI start-ups is projected to rise at 27.60% CAGR, gaining government fund that subsidizes domestic AI research. Start-ups require burstable GPU capacity and favor opex pricing, driving up demand for shared colocation pods. Telecom operators are embedding AI in network-operations analytics and customer-experience engines, converting legacy central offices to mini-data centers. Government demand stems from smart-city projects and language-model initiatives under the TAIDE program. BFSI institutions anchor Tier IV capacity expansions, while manufacturers leverage edge-to-core AI loops for predictive maintenance across fab lines.

E-commerce and media workloads remain growth pockets, yet their share is overtaken by compute-intensive model training, simulation, and digital-twin applications. Cross-sector collaborations are emerging: semiconductor fabs exchange waste heat with adjacent data centers, and banks co-locate compute near telco MEC nodes to cut payment latency.

Taiwan Hyperscale Data Center Market: Market Share by End-user Industry
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Note: Segment shares of all individual segments available upon report purchase

By Data Center Size: Mega-Scale Sites Surface while Massive Campuses Prevail

Massive campuses between 25 MW and 60 MW represented 49.70% of capacity in 2024, reflecting optimal economies of scale within Taiwan’s grid-connection limits. Mega-scale facilities exceeding 60 MW, exemplified by Foxconn’s planned 100 MW AI supercomputer, are set to grow at 24.90% CAGR. The Taiwan hyperscale data center market size for mega-sites is constrained by 30 MW single-feeder caps in Hsinchu Science Park, so operators aggregate adjacent feeders or build dual-site campuses interconnected over fiber. Mega-scale economics revolve around shared coolant-distribution, bulk gas-insulated switchgear, and on-site high-voltage substations.

Large installations below 25 MW continue to serve edge and enterprise colocation but face slower growth. Site-selection models now weigh available renewable-energy quotas and seismic profiles over mere metropolitan proximity. Consequently, Taichung–Changhua attracts mega-scale developers due to offshore wind landing points and ample land parcels.

Geography Analysis

The Taipei–Taoyuan corridor held 55.40% revenue share in 2024 owing to its carrier-hotel density, subsea cable gateways, and proximity to the island’s technology headquarters. AWS’s three-zone sovereign-cloud region anchors additional network builds and stimulates anchor-tenant demand from semiconductor design houses. Land scarcity and grid congestion, however, are lengthening entitlement cycles, prompting developers to reserve capacity years in advance. Municipal authorities now require power-purchase balance sheets before granting construction permits, adding complexity to expansion plans.

Hsinchu–Miaoli capitalizes on its semiconductor cluster and mature 161 kV grid, hosting national supercomputing centers and advanced-packaging vendors. Individual data-center feeders are capped at 30 MW to prioritize fab expansions, forcing operators to deploy modular blocks across multi-building campuses. Fiber-dense routes between Hsinchu Science Park and Taipei create low-latency corridors that benefit AI inferencing workloads supporting chip design automation.

Taichung–Changhua is the fastest-growing region with 19.30% CAGR as offshore-wind PPAs unlock abundant renewable power. Google’s 500 MW wind agreement catalyzes additional data-center interest and attracts supply-chain partners. Tainan–Kaohsiung in the south offers large land parcels and emerging geothermal resources. Chunghwa Telecom’s first AI power center in Tainan signals accelerating southern deployments. Infrastructure gaps such as limited dark-fiber routes are being closed through new submarine-cable landing points and terrestrial backbones funded by telecom-utility joint ventures.

Competitive Landscape

Competition is moderate, with global hyperscalers, domestic telcos, and specialist colocation firms sharing the addressable market. International cloud providers differentiate through custom silicon, sovereign-cloud compliance, and renewable PPAs. Domestic operators leverage existing metro fiber, licensed spectrum, and government relationships. 

Foxconn partners with NVIDIA to build a 100 MW GPU cluster, blending manufacturing prowess with cloud service aspirations. Vantage Data Centers collaborates with Taiwan Mobile, bringing Western development standards and securing the island’s first greenfield project financing from local banks. Emerging disruptors such as Giga Computing bundle servers, coolant, and racks into turnkey modules that cut deployment cycles by 30%.

Strategic moves include long-dated offshore wind PPAs, multi-cloud interconnect fabrics, and sovereign-AI sandbox services that allow government agencies to build classified models. Competitive advantages increasingly hinge on securing GPU allocations and renewable-energy quotas rather than on traditional real-estate considerations. M and A activity remains limited but interest in edge-facility takeovers is growing as hyperscalers extend inference close to users

Taiwan Hyperscale Data Center Industry Leaders

  1. Amazon Web Services

  2. Microsoft Corporation

  3. Alphabet Inc. (Google)

  4. Chunghwa Telecom Co.

  5. Chief Telecom

  6. *Disclaimer: Major Players sorted in no particular order
Taiwan Hyperscale Data Center Market Concentration
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Recent Industry Developments

  • July 2025: Foxconn subsidiary Ingrasys leased a 15,875 m² Taoyuan facility to scale AI-server production.
  • June 2025: AWS inaugurated its Taiwan cloud region backed by USD 5 billion investment.
  • June 2025: Taiwan Mobile and Vantage Data Centers began construction of a 16 MW AIDC in Taoyuan.
  • May 2025: NVIDIA and Foxconn unveiled plans for a 100 MW AI supercomputing center.

Table of Contents for Taiwan Hyperscale Data Center Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Exploding GPU-centric AI/ML workloads ( Greater than 50 kW racks)
    • 4.2.2 Rapid rollout of sovereign-cloud zones by U.S. hyperscalers
    • 4.2.3 Government incentives on green-energy PPAs for new builds
    • 4.2.4 Taiwan-wide real-time payment mandate driving Tier IV nodes
    • 4.2.5 GenAI inference campuses requiring liquid-cooling clusters
    • 4.2.6 Surplus 5G-edge telco space converted to hyperscale core
  • 4.3 Market Restraints
    • 4.3.1 Tight water-usage rules for evaporative cooling
    • 4.3.2 Chronic GPU / optical-transceiver supply bottlenecks
    • 4.3.3 Rising carbon-tax pilot in Northern Taiwan industrial parks
    • 4.3.4 Local-grid draw cap of greater than 30 MW in Hsinchu Science Park
  • 4.4 Value / Supply-Chain Analysis
  • 4.5 Technological Outlook

5. ARTIFICIAL INTELLIGENCE (AI) INCLUSION IN HYPERSCALE DATA CENTER (Sub-segments are subject to change depending on Availability of Data)

  • 5.1 AI Workload Impact: Rise of GPU-Packed Racks and High Thermal Load Management
  • 5.2 Rapid Shift toward 400G and 800G Ethernet - Local OEM Integration and Compatibility Demands
  • 5.3 Innovations in Liquid Cooling: Immersion and Cold Plate Trends
  • 5.4 AI-Based Data Center Management (DCIM) Adoption - Role of Cloud Providers

6. REGULATORY & COMPLIANCE FRAMEWORK

7. KEY DATA CENTER STATISTICS

  • 7.1 Existing Hyperscale Data Center Facilities in Taiwan (in MW) (Hyperscale Self build VS Colocation)
  • 7.2 List of Upcoming Hyperscale Data Center in Taiwan
  • 7.3 List of Hyperscale Data Center Operators in Taiwan
  • 7.4 Analysis on Data Center CAPEX in Taiwan

8. MARKET SIZE and GROWTH FORECASTS (VALUE)

  • 8.1 By Data Center Type
    • 8.1.1 Hyperscale Self-build
    • 8.1.2 Hyperscale Colocation
  • 8.2 By Component
    • 8.2.1 IT Infrastructure
    • 8.2.1.1 Server Infrastructure
    • 8.2.1.2 Storage Infrastructure
    • 8.2.1.3 Network Infrastructure
    • 8.2.2 Electrical Infrastructure
    • 8.2.2.1 Power Distribution Unit
    • 8.2.2.2 Transfer Switches and Switchgears
    • 8.2.2.3 UPS Systems
    • 8.2.2.4 Generators
    • 8.2.2.5 Other Electrical Infrastructure
    • 8.2.3 Mechanical Infrastructure
    • 8.2.3.1 Cooling Systems
    • 8.2.3.2 Racks
    • 8.2.3.3 Other Mechanical Infrastructure
    • 8.2.4 General Construction
    • 8.2.4.1 Core and Shell Development
    • 8.2.4.2 Installation and Commissioning
    • 8.2.4.3 Design Engineering
    • 8.2.4.4 Fire, Security and Safety Systems
    • 8.2.4.5 DCIM / BMS Solutions
  • 8.3 By Tier Standard
    • 8.3.1 Tier III
    • 8.3.2 Tier IV
  • 8.4 By End-User Industry
    • 8.4.1 Cloud and IT
    • 8.4.2 Telecom
    • 8.4.3 Media and Entertainment
    • 8.4.4 Government
    • 8.4.5 BFSI
    • 8.4.6 Manufacturing
    • 8.4.7 E-Commerce
    • 8.4.8 Other End Users
  • 8.5 By Data Center Size
    • 8.5.1 Large (Less than equal to 25 MW)
    • 8.5.2 Massive (Greater than 25 MW and less than equal to 60 MW)
    • 8.5.3 Mega (Greater than 60 MW)

9. COMPETITIVE LANDSCAPE

  • 9.1 Market Share Analysis
  • 9.2 Company Profiles {(includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)}
    • 9.2.1 Amazon Web Services
    • 9.2.2 Microsoft Corporation
    • 9.2.3 Alphabet Inc. (Google)
    • 9.2.4 Meta Platforms Inc.
    • 9.2.5 Oracle Corporation
    • 9.2.6 International Business Machines Corp.
    • 9.2.7 Digital Realty Trust Inc.
    • 9.2.8 Equinix Inc.
    • 9.2.9 NTT Ltd. (Taiwan)
    • 9.2.10 Chunghwa Telecom Co.
    • 9.2.11 Chief Telecom
    • 9.2.12 Vantage Data Centers LLC
    • 9.2.13 STACK Infrastructure
    • 9.2.14 Iron Mountain Data Centers
    • 9.2.15 CyrusOne Inc.
    • 9.2.16 Quality Technology Services (QTS)
    • 9.2.17 Far EasTone Telecom
    • 9.2.18 Acer e-Enabling Service Business
    • 9.2.19 Wiwynn Corp.
    • 9.2.20 CoreWeave Inc.
    • 9.2.21 OVHcloud
    • 9.2.22 GDS Holdings Ltd.
    • 9.2.23 EdgeConneX
    • 9.2.24 LiquidStack Inc.

10. MARKET OPPORTUNITIES and FUTURE OUTLOOK

  • 10.1 White-Space and Unmet-Need Assessment
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Key Questions Answered in the Report

What is the current size of the Taiwan hyperscale data center market?

The market reached USD 626.32 million in 2025 and is projected to surpass USD 1.16 billion by 2031.

Which segment is growing fastest in Taiwan’s hyperscale data center landscape?

Hyperscale colocation is forecast to grow at 21.40% CAGR through 2031 as enterprises seek rapid access to AI-optimized capacity.

Why are liquid-cooling systems gaining traction?

GPU racks over 50 kW require direct-to-chip or immersion cooling, driving 32.80% CAGR in liquid-cooling spend and enabling sub-1.33 PUE efficiency.

How are renewable-energy mandates affecting site selection?

Operators prioritize regions like Taichung–Changhua that offer offshore-wind PPAs, shifting development southward to secure 80% renewable mixes by 2028.

What are the key challenges facing hyperscale expansion in Taiwan?

Stringent water-recycling rules, 30 MW feeder caps, and chronic GPU and optical-module shortages are lengthening deployment timelines and raising costs.

Which companies are leading new AI infrastructure projects?

AWS, Foxconn with NVIDIA, and Chunghwa Telecom headline recent mega-scale initiatives, underscoring a convergence of global hyperscalers and domestic telcos.

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