Taiwan's data center industry is one of the most promising in APAC, owing to its close proximity to China, major digitization, industrial land development, growing fibre connectivity, and the growing presence of cloud service providers. Submarine cables connect the market to various areas of the world, with roughly 13 cables connecting the market to various parts of the world and two forthcoming cables now in the deployment stage.
Taiwan's data center market is comprised of approximately seven distinct third-party data center service providers operating approximately 15 sites. The country is now seeing investments in six planned facilities that are anticipated to open in the future years.
Taiwan's government established The Taiwan AI Centre of Excellence (Taiwan AICoE) in March 2023 to advance artificial intelligence in the market. With the construction of efficient infrastructure in the market, the rising use of artificial intelligence would considerably increase data traffic and demand for data centers. The data flow generated by this high-power computer technology has a larger bandwidth, increasing rack power density. Furthermore, one of the important components of data center location selection is robust connectivity.
Vena Energy, an APAC-based renewable energy firm, revealed intentions in September 2022 to start two offshore wind energy projects in Taiwan, Wei-Na and Wei-Long, with a combined generating capacity of around 1.8 GW. Taiwan intends to invest over $170 billion in the decarbonization of the public and private sectors by 2050.