Chunghwa Telecom is increasing its bet on AI infrastructure. The Taiwanese operator has opened a new AI data center in Lunping, Taoyuan. The site began operations during the second quarter.
When fully built, the facility should add up to 36MW of IDC capacity. IDC means internet data center capacity. It supports cloud platforms, enterprise systems, and high-demand computing workloads.
This move comes as operators reassess their role in digital infrastructure. Traditional connectivity still matters. Yet data centers now sit closer to the center of telco growth.
In July, the company also signed an agreement with the Taiwan Stock Exchange. It will provide dedicated colocation capacity in another AI data center. That second site remains under construction in Taichung.
Colocation lets customers place their servers inside a third-party data center. They gain secure space, power, cooling, and network access. For financial firms, this can improve resilience and latency.
During the earnings call, president Lung Shih-Lin said: “These achievements demonstrate our ability to convert AI infrastructure investments into long-term financial return.”
The strategy reaches beyond campuses and server rooms. Chunghwa wants to become a regional “Three A’s hub” for the AI era. It plans to combine AI data centers, optical networking, submarine cables, and satellite links.
That mix could give enterprises stronger international connectivity. It may also support data sovereignty and backup routes. These points matter as geopolitical uncertainty affects network planning.
However, the strategy also requires heavy capital spending. AI data centers need major power supply and advanced cooling. Operators must manage energy use carefully. They also face strong competition from cloud giants.
Chunghwa’s latest financial results show clear momentum. ICT revenue rose 32% year over year in the quarter. Recurring ICT revenue also grew 9%. Growth came from IDC, cybersecurity, big data, and public cloud services.
The company also reported strong contract demand. Second-quarter ICT orders climbed 30% year over year. First-half contract value already matched the full-year 2025 total.
International business added another growth engine. Overseas subsidiaries posted 242% year-over-year revenue growth. Projects in the United States and Southeast Asia played a major role.
Looking ahead, Lin said: “Given the ramp-up of the AI-driven data traffic and the growing international connectivity demand resulting from the geopolitical uncertainty, we are well-positioned to capture these opportunities, supported by continued investment in submarine cable and satellite projects.”
For telecom operators, the message looks clear. AI infrastructure is becoming a network business. The winners will connect compute, security, and global reach effectively.
