TAIPEI (Taiwan News) — The Ministry of Economic Affairs said electricity demand is expected to rise significantly as companies expand AI data and computing centers, mainly in western urban areas and industrial parks, UDN reported.
The ministry forecasts that Taiwan’s power consumption will rise 13% by 2030 compared with 2023, driven by rapid growth in the AI and semiconductor sectors. It also projects that AI-related power demand will reach 224 kW by 2028, an eightfold increase from 2023.
According to the Industrial Development Administration, government agencies and research institutions will also promote data center construction projects. The government aims to build integrated data centers, strengthen digital infrastructure, and combine AI technology with big data platforms for R&D.
The ministry also forecast that by 2030, electricity demand from AI data centers and computing facilities in Taiwan could reach one GW. It said a single data center or AI server site could consume as much power as a nuclear reactor unit or a large coal-fired power plant produces.
The ministry said it will tighten reviews of data center projects that use over five MW of power, considering industry needs, energy efficiency, and environmental impact. It added that it will encourage companies to use more green energy and energy-saving equipment.
Taipower said the northern power grid is operating near capacity due to high electricity demand. It has suspended applications for data centers with a power demand above five MW in areas north of Taoyuan since August 2023.
Taipower also encourages companies to set up new data centers in central and southern Taiwan due to better grid capacity. It said this would help reduce the risk of power outages.
To reduce carbon emissions, the government is increasing the construction of natural gas power units to replace coal-fired power generation, aiming for gas-fired electricity to account for 50% of the total supply by 2030.
Additional gas units at Kaohsiung's Hsinta Power Plant and the Taichung Power Plant are under construction and are expected to be completed by the end of this year.
Economics Minister Kung Ming-hsin (龔明鑫) said renewable energy accounted for 15.4% of Taiwan’s total electricity generation as of April 16. He added that the ministry will work to achieve the government’s target of 30% by 2030.
