Recently, the Taipei International Computer Show (Computex) attracted a large number of industry leaders, and an AI whirlwind swept across Taiwan. The "AI Godfather" Nvidia CEO Huang Renxun, AMD CEO Su Zifeng and others came to Taiwan in person and proposed to set up factories and invest in Taiwan. Minister of Economic Affairs Kuo Chih-hui said yesterday (5th) when he went to the Legislative Yuan for questioning that the period from 2025 to 2028 is expected to be a period of explosive growth in AI, and the original 2025 energy ratio target of "532" may need to be adjusted.
Kuo Chih-hui said that the Ministry of Economic Affairs is currently calculating the growth of new electricity consumption, and it is estimated that it will increase by at least 3% each year. In the face of the explosive growth of AI, new power supply will give priority to solar photovoltaics. It takes at least 6 years to build a new power plant, and the government will not add any more coal-fired power plants.
AI power plants see increased electricity demand; Minister of Economic Affairs: Energy allocation target "532" will be adjusted.
Guo Zhihui made his first appearance before the Legislative Yuan's Economic Affairs Committee on the 5th to prepare for questioning. Regarding the public's concern about AI development and electricity consumption, Guo explained that the Ministry of Economic Affairs' top priority is stable power supply, and that current inventory estimates indicate sufficient power for new plants. Guo stated that building a new power plant takes at least six years, and the government will not add any more coal-fired power plants. The AI industry requires green electricity, including significant amounts of wind and solar power.
As for Guo's proposal last week for a "Nuclear Power Plant III backup plan," suggesting that after a shutdown and safety inspection, the No. 3 nuclear power plant could serve as a backup plan for the rapid growth of AI power demand, Legislator Chang Chi-kai questioned this yesterday, saying it's like digging a well when thirsty. Once a nuclear power plant is decommissioned, it's difficult to restart it quickly. Guo responded that current legal regulations require shutdowns, and that compliance must be followed. Regarding increasing power sources under current regulations, he would prioritize solar photovoltaics, supplemented by energy storage and pumped hydro storage. "This is the fastest way."
The recent Taipei International Computer Show (Computex) saw a gathering of industry leaders, creating an AI whirlwind across Taiwan. The "AI Godfather" Nvidia CEO Jensen Huang and AMD CEO Lisa Su have personally visited Taiwan and have proposed setting up factories and investing in the country. Minister of Economic Affairs Chih-Hui Kuo said during a hearing at the Legislative Yuan yesterday (5th) that the period from 2025 to 2028 is expected to be a period of explosive growth for AI, and the original 2025 energy allocation target of "532" may need to be adjusted.
AI growth drives 3% annual electricity consumption increase, supporting up to 5-6 more data centers by the end of next year
The New Yorker reported that OpenAI's popular chatbot, ChatGPT, consumes approximately 500,000 kilowatt-hours (kWh) of electricity per day. Compared to the roughly 13 kWh daily electricity consumption of Taiwanese households in summer, this is equivalent to the electricity consumption of 40,000 households in Taiwan.
Guo Zhihui stated that if AI continues to flourish, the annual electricity consumption growth rate is expected to reach 3%, "possibly exceeding that." Currently, it is estimated that by the end of next year, the power consumption of this technology will be enough to support the electricity needs of five to six new data centers.
However, officials from the Ministry of Economic Affairs revealed that the growth in AI electricity consumption is only estimated based on current data and historical records. Although Taiwan currently has experience in building general data centers, unlike new AI data centers, AI's data transmission scale is larger, and different usage settings may result in different power consumption. The actual power demand still needs to be observed and evaluated.
As is customary, the Ministry of Economic Affairs releases a new electricity supply and demand report at the end of June each year. It will be interesting to see how the report predicts future AI electricity consumption in response to new factory construction needs. Last year's "Electricity Supply and Demand Report" by the Ministry of Economic Affairs estimated an average five-year electricity consumption growth of 2.03%.
Building AI Islands to Help Enterprises Transform to Net Zero
Yesterday at the Legislative Yuan, Kuo Chih-hui mentioned the keyword "AI" over 30 times in his short, eight-page oral report, demonstrating the importance he places on the technology. He noted that AI could boost corporate productivity by 20% and help reduce global greenhouse gas emissions by 5-10%. Taiwan, a leader in semiconductors, is one of the few countries to ride the first wave of the AI boom. Taiwan must accelerate innovative applications and raise the penetration rate of AI in manufacturing to at least 50%.
Legislator Hung Shen-han reminded that improving energy efficiency is a key international indicator, not just by adding new power to meet demand. Guo Zhihui stated that he would strengthen the development of the energy-saving service industry (ESCO) and evaluate and propose a flagship "deep energy conservation" plan in conjunction with various ministries and commissions.
Sources: Environmental Information Center
