Taiwan’s power consumption is to increase faster at an annual compound growth rate of 2.5 percent over the next five years, mainly driven by an eightfold surge in electricity usage by artificial intelligence (AI) applications, the Energy Administration said yesterday.
The latest forecast represented an increase from the 2 percent growth estimated last year for the period from last year through 2029.
The annual growth rate from this year to 2033 is expected to reach 2.8 percent as new data centers for AI applications become operational, the administration said in a report.
Photo: CNA
The increase in demand comes as Taiwan is expected to undergo a strong economic recovery this year, the semiconductor industry expands capacity amid an AI boom and electric vehicles become more popular, the report said.
AI applications including AI-focused data centers would consume about 2.24 gigawatts (GW) of power in 2028, expanding eightfold from 240 megawatts last year, the administration said.
The latest forecast factored in the expected deployment of new data centers, likely from Apple Inc, Nvidia Corp and Amazon Web Services, in addition to existing centers operated by Google, Microsoft Corp and Nvidia.
Photo: Lin Jing-hua, Taipei Times
“Because of AI, Taiwan has to add 12 to 13 percent more capacity during peak load during the 2024-2029 period,” Energy Administration Director-General Yu Cheng-wei (游振偉) told a news conference in Taipei yesterday.
The administration identified this year to 2028 as the critical period when electricity consumption would spike due to rapid uptakes of AI data centers, large-language AI training models and supercomputer centers, which have not been included in the administration’s forecast before.
Peak load demand is expected to expand to about 4.21GW at night from 3.73GW this year, the administration said.
To ensure stable and sufficient supply, Taiwan Power Co (Taipower, 台電) would install more natural-gas generators, enhance electricity grid resilience by revamping electrical substations and expand green energy storage systems, Yu said.
He urged the public to support CPC Corp, Taiwan’s (台灣中油) deployments of new liquefied natural gas (LNG) terminals to regasify LNG before sending it to power stations.
The construction of new LNG terminals was suspended amid environmental concerns.
Taipower projected its reserve margin would improve to 13.3 percent in 2028 from 8.5 percent this year.
That figure is expected to climb to 23.8 percent in 2033, indicating that its electricity capacity would outgrow demand, or capacity adequacy, the state-run utility said.
Asked if the administration would consider restarting or delaying the shutdown of nuclear power plants, Yu said the administration would respect the legislature’s decision on the matter.
Renewable energy is to account for 20 percent of the total power supply in November 2026, rather than the government’s 2025 target, the third time the government has pushed back the goal.
Yu blamed a surge in power consumption for the delays, but said the deployment of renewable energy generation remains on track.
By the end of 2029, green energy is projected to make up about 25 percent of the total power supply, down from 27 percent estimated last year, largely due to increases in total power supply, the report said.
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
ROUGH RECORDS: Bonds in Japan, as well is in New Zealand, Australia and the US, are seeing the effects of a nervy market as stock exchanges across Asia edge down A deepening slump in Japanese government bonds added fuel to the selloff in global debt markets as rising oil prices stoked inflation fears and pushed yields to multi-decade highs. Japan’s 30-year yield yesterday surged as much as 20 basis points to the highest level since the tenor’s debut in 1999, before paring some of the move. Shorter-maturity Japanese debt was also under pressure, underscored by weak demand at a sale of five-year notes that offered a record-high coupon of 2 percent. Concerns over inflation and government spending rippling through markets including the US, Australia and New Zealand are being amplified in Japan,
The US has cleared about 10 Chinese firms to buy Nvidia Corp’s second-most powerful artificial intelligence (AI) chip, the H200, but not a single delivery has been made so far, three people familiar with the matter said, leaving a major technology deal in limbo as chief executive officer Jensen Huang (黃仁勳) seeks a breakthrough in China this week. Huang, who was not initially listed in a White House delegation to Beijing, joined the trip after an invitation from US President Donald Trump, a source said. Trump picked him up in Alaska en route to a summit with Chinese President Xi Jinping
Wall Street is licking its chops over an unprecedented slate of massive initial public offerings (IPOs) set to arrive in the coming months, beginning with Elon Musk’s Space Exploration Technologies Corp (SpaceX) next month. That is expected to be followed by artificial intelligence (AI) rivals OpenAI and Anthropic PBC. The trio of mega listings, each eyeing valuations around US$1 trillion or more, constitutes a heady period of elevated risk and reward. SpaceX is targeting an IPO that would raise up to US$80 billion — about double the funds generated from all IPOs last year. OpenAI and Anthropic are eyeing IPOs raising US$60 billion. “We’re
RSS