Chunghwa said its newly built AI data center in Lunping, Taoyuan, officially began operations during Q2 and is expected to add up to 36MW to its total IDC capacity upon full build-out
In sum – what to know:
AI infrastructure – Chunghwa Telecom launched operations at a new AI data center in Taoyuan, signed a financial-sector colocation partnership and continued expanding its AI infrastructure footprint.
ICT growth – ICT revenue rose 32%, driven by strong growth in big data, cybersecurity, and IDC services, while first-half ICT contract value already matched the company’s full-year 2025 total.
Regional platform – The operator is positioning itself as the region’s “Three A’s hub” by combining AI data centers, optical networking, submarine cables and satellite connectivity.
Taiwanese carrier Chunghwa Telecom highlighted AI infrastructure as a central pillar of its growth strategy during its second-quarter earnings call, announcing the start of operations at a new AI data center in Taoyuan, outlining additional AI data center projects, and reporting strong ICT growth.
The company said its newly built AI data center in Lunping, Taoyuan, officially began operations during the quarter and is expected to add up to 36MW to its total IDC capacity upon full build-out.
In July, Chunghwa also signed a memorandum of understanding with the Taiwan Stock Exchange to provide dedicated colocation capacity within a second AI data center currently under construction in Taichung.
During the earnings call, the telco’s president Lung Shih-Lin said: “These achievements demonstrate our ability to convert AI infrastructure investments into long-term financial return.”
Beyond expanding AI computing capacity, Chunghwa said it is positioning itself as the region’s “Three A’s hub for the AI era,” combining distributed AI data centers, its IOWN optical network, and sea-land-sky communications infrastructure.
The company also highlighted the launch of the IOWN AI Fund, established jointly with global partners in June. According to management, the fund aims not only to build the IOWN ecosystem but also to create new business opportunities through technology investments.
Several subsidiaries are also expanding alongside the company’s AI strategy. During the quarter, Chunghwa Telecom Precision Test commenced construction of a new factory to support growing AI semiconductor testing demand, while Chunghwa Leading Photonics Tech began trading on Taiwan’s emerging stock exchange.
During the earnings call, the company’s management said ICT revenue increased 32% year over year in the quarter, while recurring ICT revenue grew 9%, maintaining momentum across major service lines including IDC, cybersecurity, and international public cloud services.
The company also reported strong momentum in new contracts. Second-quarter ICT order intake increased 30% year over year, while the total ICT contract value secured in the first half of 2026 already matched the full-year total achieved in 2025.
According to Chunghwa, major contract wins during the quarter included large-scale AIDC projects, which are expected to further increase AI-related revenue, alongside a flagship Taipower energy storage project and multiple smart surveillance deployments.
International operations also contributed to growth. Chunghwa said overseas subsidiaries posted 242% year-over-year revenue growth, particularly due to large-scale ICT project deliveries across the United States and Southeast Asia.
Revenue in the United States experienced a string growth year over year, “mainly due to the delivery of the large-scale AI supply chain projects in Texas,” while revenue in Southeast Asia doubled, supported by ongoing construction projects in Singapore and Vietnam. The company added that it has since secured additional ICT projects across the United States, Singapore and Thailand, providing visibility into future growth.
Looking ahead, Lin said Chunghwa is well positioned to benefit from expanding AI-driven connectivity requirements. “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.”
