The Beitou-Shilin Tech Park is facing power infrastructure difficulties as the Taipei City Government and Taiwan Power Co (Taipower, 台電) remain divided over a planned substation.
The city government in February signed a deal with Nvidia to build the company’s Taiwan headquarters in the park.
Taipei secured Nvidia’s planned overseas headquarters project after resolving a stalemate involving land-use rights and terminating a contract with Shin Kong Life Insurance Co, allowing the dominant artificial intelligence (AI) processors builder to establish operations at the park.
Photo: CNA
While the project is set to begin construction in two months, the power infrastructure plan has not been finalized, as the city government and Taipower have not reached agreement, despite having held five coordination meetings.
Sources said that with substations surrounding the park already operating near capacity and lacking space to expand, Taipower believes a new substation in Wenlin (文林) is necessary.
The city government favors an underground facility, while Taipower is pushing for an above-ground design, they said.
According to Taipower, the underground option would take about nine years to complete, while an aboveground facility could be finished in roughly five years and would pose a lower flood risk, as well as better ensure grid reliability and project efficiency.
While Nvidia’s headquarters itself would not consume electricity on the scale of a large data center, it is expected that the project would attract suppliers, research centers and artificial intelligence (AI) startups to the area, significantly increasing long-term electricity demand.
To meet medium and long-term power needs in Taipei, Taipower said it plans to build a permanent and a temporary substation.
The permanent facility would house three main transformers with a combined capacity of 180 megawatts, while the temporary substation would contain one transformer with a capacity of about 60 megawatts, it said.
Prep work would take two years and the temporary facility could be connected to the grid about 20 months after construction permits are obtained, it said, adding that construction would need to begin early next year to meet the park’s initial power demand.
However, the permanent substation faces major hurdles.
The Wenlin substation is not just a standalone facility but the “power heart” of the park’s upcoming AI industry cluster, Taipower said.
The project would require approval from the Taipei City Government and Taipei City Council for land use and leasing arrangements before being submitted to the Executive Yuan, it said.
The project must pass urban design reviews, building permit approvals and construction licensing procedures, it said, calling on the city government to fully support the project and accelerate the approval process.
Other substations in Taipei are also facing opposition from locals, including the ones in Yucheng (玉成) and Huajiang (華江).
Residents near the Yucheng substation in Nangang District (南港), concerned the facility could affect health and property values, are calling for relocation.
Taipower said the relocation options are not feasible and is proceeding with a temporary outdoor substation at the original site, which is expected to join the grid on Saturday next week.
However, the temporary facility would only be able to support short-term growth in residential electricity demand, it said, adding that without a permanent substation, future urban renewal projects, rezoning developments and high-voltage electricity users could strain supply margins.
As for the Huajiang substation in Wanhua District (萬華), Taipower said it evaluated eight alternative sites, but found all unsuitable due to existing development or construction constraints.
It said it decided to proceed with an underground substation at the original site, while planning to use the above-ground area for multipurpose public facilities to reduce local opposition.
Substations are critical nodes in the city’s power network, but public communication surrounding such projects has become increasingly difficult to date, delaying multiple infrastructure projects, it said.
Taipower warned that electricity demand in Taipei is rising rapidly due to AI development, urban renewal projects and large-scale construction, urging the city government to help accelerate coordination and review procedures to prevent power infrastructure from becoming a bottleneck for urban development.
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