By capitalizing on the wave of AI-driven demand and global connectivity, Chief Telecom is cementing its position as a leading data center and internet exchange powerhouse in East Asia
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Taiwan’s Chief Telecom (TWSE: 6561) is on an upward trajectory, with the company reporting $30.5 million in consolidated revenue for Q3 2024, marking a 12% quarterly increase and the fifth consecutive quarter of record-breaking revenue. This milestone, the first time Chief surpassed USD 30 million in a single quarter, has positioned the company as a dominant force in East Asia’s data center and internet exchange industry. “We have created an ecosystem where our clients benefit from increased cost efficiency and seamless digital transformation,” says chairman Jerry Shao. “This is the result of our strategy of expanding from Taipei to Taiwan and then internationally.”
A key driver of this growth has been Chief Telecom’s AI-driven expansion, particularly the launch of the LY2 AI data center in Neihu, Taipei. Built with a $106.9 million investment, the facility has already sold 70% of its capacity within three months and is projected to reach 80% by the end of 2025. The center supports high-power AI computing with cutting-edge liquid cooling technology, serving leading cloud and AI providers. “The AI boom is fueling demand for high-power, high-density computing, and we are positioned to meet these needs efficiently,” says Tim Chiang, VP of the planning division. “Our AI data center when reaching full utilization will generate over $30 million in annual revenue, making it a strong investment.”
Alongside its AI initiatives, Chief Telecom’s Taipei Internet eXchange Center (TPIX) has climbed global rankings, now standing at 71st among the world’s largest internet exchange points. TPIX is the largest internet exchange in Taiwan and the only one ranked in the global top 100. The center serves major international carriers, OTT providers, and telecom companies, ensuring low-latency, high-speed connectivity. “With nearly 200 major members, including global tech giants, TPIX is an essential hub for domestic and international internet traffic,” Shao explains. “This network effect strengthens Taiwan’s digital infrastructure and attracts even more businesses.”
The company is also leveraging its robust network services, including the consolidation of submarine cable routes. Chief Telecom provides automatic failover solutions, ensuring uninterrupted service when a cable is cut. “We eliminate service disruptions by automatically rerouting traffic across multiple submarine cables,” Chiang notes. “This level of redundancy is critical for enterprises that rely on seamless global connectivity.”
As part of its global expansion, Chief Telecom is strengthening its presence in the U.S. and Europe, actively seeking new partnerships. The company already collaborates with major cloud providers like AWS, Google, and Microsoft as a service partner rather than a competitor. “Taiwan’s strategic location makes it an ideal hub for global connectivity,” Shao emphasizes. “We work like an airline alliance, connecting our customers to key markets while ensuring maximum efficiency.”
The ongoing U.S.-China trade tensions have also presented opportunities for Taiwan, as global businesses seek alternative data and telecom hubs outside of China. “Taiwan is a very free nation, particularly in technology,” Shao said. “With the shift in global supply chains, Taiwan is increasingly seen as a reliable and secure digital infrastructure hub. We are committed to enhancing our partnerships with U.S. firms, positioning ourselves as their key partner in Asia.”