TAIPEI (Taiwan News) — Foxconn Chair Young Liu (劉揚偉) said Thursday that AI data centers will require enormous spending and power, driven by AI developers, cloud providers, governments, and businesses.
Speaking at a Chinese National Association of Industry and Commerce meeting, Liu explained that AI data centers differ sharply from traditional industries such as personal computers because of their much larger capital and energy requirements, per CNA.
Citing industry forecasts, Liu said the global data center market could reach NT$50.5 trillion (US$1.6 trillion) by 2030. The sector is expected to consume 174 gigawatts of electricity and require an additional 18 GW of power generation capacity each year, per Liberty Times.
Liu said Taiwan’s electricity demand could approach 40 GW as AI infrastructure expands. Globally, data center-related growth is expected to create 106 GW of new power demand by 2030, equivalent to roughly 2.5 times Taiwan's current electricity consumption, he said.
While electricity costs are substantial, Liu said hardware depreciation is an even bigger expense. A 1 GW AI data center would face annual power costs of about NT$41 billion, while depreciation expenses could be six times higher.
Liu said demand for AI data centers is strongest among AI model developers and cloud service providers because their business models are established. He said governments and enterprises are expected to become important customers as AI adoption expands.
For businesses, Liu said demand will be driven by AI-native companies, where AI systems perform much of the operational work while humans focus on setting goals and overseeing governance. He said such companies will require redesigned workflows and upgraded workforce skills.
