Taiwan Data Center Server - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2030

The Taiwan data center server market reached a value of USD 1.1 billion in the previous year, and it is further projected to register a CAGR of 7.0% during the forecast period. The increasing demand for cloud computing among small and medium-sized enterprises (SMEs), government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.

Under Construction IT Load Capacity: The upcoming IT load capacity of the Taiwan data center market is expected to reach 300 MW by 2029.

Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 1.5 million sq. ft by 2029.

Planned Racks: The country's total number of racks to be installed is expected to reach 76K units by 2029. Taipei City is expected to house the maximum number of racks by 2029.

Planned Submarine Cables: There are close to 10 submarine cable systems connecting Taiwan, and many are under construction. One such submarine cable that is estimated to start service in 2024 is Apricot, which stretches over 11,972 Kilometers with landing points from Toucheng, Taiwan.

Taiwan Data Center Server Market Trends

IT & Telecommunication Segment To hold A Major Share in the Market

• Cloud and telecom are anticipated to contribute the largest market shares among end-user industries. Due to the increasing data generation, which drives the demand for quicker processing and effective servers, the cloud segment generates significant revenue. Numerous cloud service providers, including Cadence, Google, Siemens, Azure, AWS, and Synopsys, joined forces with TSMC to form a cloud alliance. Other big corporations also intend to enter the Taiwanese cloud industry in the future.
• As Taiwan develops into a regional hub for many enterprises, they are investing in cloud computing, thus increasing the demand for local data centers. The government is encouraging Taiwanese businesses to go digital. It is also dedicated to creating a cloud-based smart digital blueprint for local partners and connecting top-tier creative technologies for a variety of industries.
• The average monthly mobile data usage is forecast to increase from 22 GB in 2022 to about 41 GB in 2029, driven by the growing consumption of high-bandwidth online entertainment and social media content over smartphones. On average, Taiwanese people use about 6.5 social media platforms per person. They spend about two hours on social media on a daily basis. The active social network penetration in Taiwan is about 89.4%, and the number of social media users increased from 0.4 million from 2020 to 2022. This enables more use of data in data centers and, thus, increasing demand for data center servers.
• With an increase in smartphone users in Taiwan, the demand for telecom services is expected to grow. The Taiwanese electronics market has expanded due to the growing semiconductor sector. Taiwan currently produces close to 21% of the world's semiconductors. Over the past few decades, Taiwan has dramatically improved its semiconductor output, becoming a prominent participant in the sector.
• The use of digital consumer products such as smartphones and the data generated via them may allow telecom companies to securely manage and store large volumes of data and scale up the storage capacity as per their requirements. Such instances in the market create more demand for data center manufacturers in the coming years.

Blade Servers To Grow At A Faster Pace In The Coming Years

• Reduced power consumption and high processing power contribute to the blade servers in data centers.
• Single or multiple server blades can be inserted or removed without distressing another running system. It reduces hardware costs, which is likely to entice industry players to adopt the technology, thereby fueling market growth. Additionally, each server blade does not consist of a distinct infrastructure and chassis, owing to which the product is relatively cheaper as compared to other solutions.
• To cater to end-user needs, top companies such as Cisco and Dell are focusing on blade servers in data centers.
• The growing adoption of technologies such as cloud computing, artificial intelligence (AI), IT services, Internet penetration, and social media users by businesses are propelling the use of servers in data centers.
• Blade servers are generally designed with energy efficiency in mind, helping to reduce power consumption and operational costs.

Taiwan Data Center Server Industry Overview

The Taiwan data center server market is relatively low in terms of competition. It has some players in the market, such as Dell Inc., Cisco Systems Inc., Kingston Technology Company Inc., Hewlett Packard Enterprise, and Fujitsu Limited. These major players focus on expanding their customer base in the country. These companies leverage strategic collaborative initiatives to increase their market share and profitability.

In May 2023, Cisco introduced UCS X servers that cut data center energy use in half. The combination of the Cisco Intersight infrastructure management platform and Unified Computing System (UCS) X-Series servers reduces data center energy consumption by up to 52% at a 4:1 server consolidation rate.

In July 2023, Dell launched Generative Artificial Intelligence Solutions that offers a modular, full-stack architecture for enterprises seeking a secure, high-performance, proven architecture for deploying large language models (LLM). A paradigm shift in IT planning has taken place due to the rapid demand for GenAI at work, which will continue to ripple through the industry. Thus, there has been a strong demand for graphics processing unit (GPU) accelerator servers that are driving the computational intensive training and inferencing of GenAI workflows.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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