Chipmaking Hub Taiwan Hikes Power Demand Outlook on AI Boom

(Bloomberg) -- Taiwan said its power consumption over the next decade will grow more than previously expected, complicating its efforts to secure supplies as it undertakes an energy transition and nuclear phase-out.

The island forecast its energy use will grow an average of 2.8% a year through 2033. Much of that demand will come from the AI sector, which is expected to consume eight times more by the end of the decade than last year, according to a report by its energy department released on Monday. A previous forecast saw an average 2.03% annual growth in overall power demand until 2029. 

Taiwan is one of several areas in the world facing a surge in electricity demand from data centers for artificial intelligence, making it harder to ensure enough supply for the island’s semiconductor chip manufacturers and other industries, which consume more than half its energy. 

The projected increase in power demand comes as Taiwan debates whether to carry on with the ruling party’s plan to phase out nuclear energy due to safety concerns. It will still shut its second-to-last operating nuclear reactor this month, with the only remaining unit scheduled to be decommissioned in May 2025. 

Taiwan also expects renewables to comprise a quarter of its energy mix by 2030, up from 12.1% this year, the report showed.

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