Taiwan Data Center Cooling Market

Taiwan Data Center Cooling Market Analysis

The Taiwan Data Center Cooling Market size is estimated at USD 32.91 million in 2025, and is expected to reach USD 66.08 million by 2031, at a CAGR of 12.32% during the forecast period (2025-2031).

• Taiwan generally has warm weather throughout the year. There is no severe cold in winter, but the weather in summer is brutally hot and of high humidity. The annual average temperature in the northern part is around 21.7 and around 24.1 in the southern part. Extreme weather events threaten physical infrastructure such as power stations, electricity cables, and data center buildings. The above factor drives the major demand for data center cooling solutions.
• The upcoming IT load capacity of the Taiwanese data center market is expected to reach more than 300 MW by 2030. The country's construction of raised floor area is expected to increase to more than 1.4 million sq. ft by 2030.
• The country's total number of racks to be installed is expected to reach more than 75,000 units by 2030. Taipei is expected to house the maximum number of racks by 2030.
• Close to 14 submarine cable systems are connecting Taiwan, and many are under construction. One submarine cable estimated to start service in 2024 is Apricot, which stretches over 11,972 kilometers with landing points from Toucheng, Taiwan.

Taiwan Data Center Cooling Market Trends

The IT and Telecom Segment is Expected to Hold Significant Share

• The telecommunications industry is looking toward institutionalization to supervise and promote digital transformation, making the process a foundation for developing the digital economy and society.
• Taiwanese mobile data usage has skyrocketed in four years, ranking second globally after Finland. According to the Global System for Mobile Communications, Taiwanese use twice as much monthly data per SIM card holder as South Koreans, more than three times as much as Japanese, and nearly six times as much as Singaporeans. This exponential increase in data usage is leading to a significant demand for servers, equipment, and cooling solutions.
• The increasing demand for high-speed data access, particularly for cloud and Internet of Things (IoT) applications like smart home energy management, is expected to drive the rapid adoption of 5G services. With 5G networks providing faster speeds, greater capacity, and reduced latency compared to 4G LTE networks, the number of 5G subscribers is experiencing substantial growth. In Taiwan, the total count of 5G customers exceeded 1 million within five months of the technology's launch. By the close of 2021, 5G penetration surged to over 30%.
• To support telecommunications operators, the Taiwanese government allocated USD 650 million, distributed between 2019 and 2022, to subsidize the installation of 5G in the country. Also, telco providers invest in data center construction, leading to market demand.
• Taiwan accounts for over 60% of global semiconductor production, dominating over 90% of the most advanced chips. Beyond semiconductors, Taiwan leads in digitalization and smart city initiatives, integrating digital technologies such as IoT, big data, and AI across nearly all industry sectors. This rapid data generation fuels a surging demand for data centers in Taiwan. Such hyperscale facility construction will lead to primary power heat consumption and significant demand for cooling solutions.

Liquid Cooling to Hold Significant Growth

• In the ever-evolving landscape of data centers, efficient cooling solutions are crucial to maintain optimal performance and handle the increasing heat loads generated by modern IT equipment. Among the emerging technologies, liquid cooling systems have gained significant traction in recent years.
• A study conducted by the Uptime Institute found that liquid cooling systems achieved a power usage effectiveness (PUE) of 1.02, indicating remarkable energy efficiency gains. Companies like Microsoft and Google in Taiwan have implemented liquid cooling solutions in their data centers, resulting in significant energy savings.
• As Taiwan becomes a regional hub for many businesses, a growing investment in cloud computing leads to an increased demand for local data centers. The government is actively promoting digital transformation among Taiwanese enterprises. It is also dedicated to creating a cloud-based smart digital blueprint for local partners and connecting top-tier creative technologies for various industries.
• For instance, Microsoft launched its "Reimagine Taiwan" program in 2020, outlining intentions to build its first cloud data center area in Taiwan and make large investments in local talent and development to supply over 200,000 Taiwanese with digital skills in 2024. Such a factor highlights the increasing demand for liquid cooling due to the rise of cloud data centers in the country.

Taiwan Data Center Cooling Industry Overview

The Taiwanese data center cooling market has consolidated among key players, leading to a heightened competitive landscape in recent years. Schneider Electric SE, Green Revolution Cooling, and Munters Group AB stand out as major players in this industry. These prominent companies, holding significant market shares, have prioritized expanding their customer base across the region. They achieve this by employing strategic collaborative initiatives to enhance their market share and profitability.

In August 2024, Zettabyte forged a strategic alliance with Wistron Corporation, a prominent technology service provider, to establish Taiwan's inaugural hyperscale AI data center. Simon Lin, chairman of Wistron Corporation, expressed enthusiasm, stating: "Wistron is thrilled to partner with Zettabyte in constructing this hyperscale AI data center, leveraging cutting-edge liquid cooling AIDC systems."

Taiwan Data Center Cooling Market Leaders

Taiwan Data Center Cooling Market News

• July 2024: Vantage Data Centers, a hyperscale data center provider, inaugurated its inaugural TPE11 facility in Taipei City, Taiwan. The new center boasts a robust 16 MW IT capacity tailored for cloud services and high-density deployments. With advanced liquid cooling technology, TPE11 is primed to cater to artificial intelligence (AI) and other data-intensive applications.
• June 2024: In a collaborative effort, Supermicro partnered with ASE, a company specializing in IC packaging and testing, and CSI, a system integrator, to inaugurate Taiwan's inaugural liquid cooling data center in Kaohsiung, located in the southern region. As part of this venture, ASE, with CSI's support, will seamlessly integrate Supermicro's liquid-cooled AI servers into the new data center, aiming to enhance ASE's R&D and production workflows.