TAIPEI (Taiwan News) — Taiwan Power Company (Taipower) Chair Tseng Wen-sheng (曾文生) cautioned the effect AI demand would have on Taiwan’s power consumption on Friday (Aug. 9).

The chair said electricity demand from AI will primarily affect the manufacturing sector, including GPU, CoWoS, and server production, per CNA. To alleviate transmission bottlenecks, the government will no longer approve data centers exceeding 5 MW north of Taoyuan.

The development of AI relies heavily on data centers, which consume a significant amount of electricity, Tseng explained. He cited South Korea and Singapore as countries that have implemented power consumption regulations for their centers.

Using a large AI data center in Kaohsiung as an example, Tseng said its power demand is about 7.68 MW. Areas south of Taoyuan are better suited to maintain system stability and safety due to infrastructure, he added.

Tseng stressed power demand for generative AI training is substantial and that future applications will have a significant impact on Taiwan's electricity usage compared to other countries.