Taiwan IaaS Market Size and Forecast by Offering, Deployment Model, Organization Size, Subscription Model, and End User Industry: 2019-2033

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Industry Assessment Overview

Industry Findings: Taiwan’s market direction is increasingly shaped by the island’s semiconductor-driven digital ecosystem and rising demand for high-performance compute (Sep-2023). Enterprises are migrating workloads to cloud environments supporting engineering simulations, chip-design workflows, and high-throughput manufacturing systems. A strong example is rapid DC development around Taipei and Taoyuan, driven by both local telcos and global cloud providers seeking to meet surging AI and industrial digitization needs.

Industry Progression: Progression accelerated when Microsoft announced in Apr-2024 the expansion of its cloud infrastructure capabilities in Taiwan, including new capacity aligned with cybersecurity and AI workloads. This directly expands enterprise hosting options, strengthens sovereign alignment, and increases competitive pressure across Taiwan’s hybrid-cloud ecosystem.

Industry Player Insights: Taiwan’s cloud environment is shaped by a mix of global and domestic platforms, including Microsoft Azure, Google Cloud, Chunghwa Telecom, and Taiwan Mobile Cloud. Chunghwa Telecom’s Oct-2023 upgrade of its Taoyuan DC improved power resilience and added high-density racks, enabling more industrial and AI workloads to shift into domestic cloud environments.