Concerns Over Power Outages Rise Amid Surge in Data Center Establishment Plans
"12% Increase in Power Usage by 2030"
As the Taiwanese government announced a massive investment plan in the artificial intelligence (AI) industry, concerns have surfaced about resolving the power shortage while maintaining the 'nuclear phase-out' goal.
According to Taiwan's United Daily News and China Times on the 9th, Guo Zhuhui, Minister of Economic Affairs, said in an interview with Taiwan Yahoo TV on the 7th, "In the past, Taiwan's electricity consumption growth rate was not high, about 2% annually. However, amid the AI wave, large corporations hope to establish data centers and research and development centers in Taiwan, so electricity consumption is expected to increase by 12% by 2030."
He continued, "The relatively uncertain factor is the data centers. Originally, 3 to 4 centers were planned, but if suddenly 10 centers come, even if power supply is sufficient, incidents could occur at one or two centers. Also, if no new power plants are built or there is no in-depth energy saving, sudden power outages could happen," he explained.
Minister Guo stated that Taiwan plans to make large-scale investments in the AI industry from 2025 to 2028. However, he projected that it would take six years to build a single power plant.
He emphasized, "The Ministry of Economic Affairs holds the attitude that preparations must be made within the legal framework regarding the extension of nuclear power plant operations," adding, "The Ministry's stance is that 'we need all kinds of power sources.'"
When the host asked if nuclear power was included in the 'necessary power,' Minister Guo replied, "All are needed," and added, "Whether solar energy, geothermal, or any other source that can generate electricity, all are necessary."
However, Minister Guo drew a line by saying, "The government hopes to achieve the permanent goal of non-nuclear (nuclear phase-out), and the Ministry of Economic Affairs will continue to move in this direction."
Taiwan has mainly relied on thermal power generation so far. Due to the aging power grid and the increasing electricity demand from advanced semiconductor companies, including the world's largest foundry (semiconductor contract manufacturing) company TSMC, power outages have frequently occurred in Taiwan.
In fact, Taiwan has experienced three major blackouts in the past seven years. There were also several small-scale blackouts last year. Earlier in June, a blackout occurred at the Neihu Science Park in Taipei, where Nvidia's Taiwan branch, Foxconn, Wistron, and Delta Electronics are located, raising concerns about the aging power grid and the nuclear phase-out crisis.
Currently, Taiwan is pursuing a policy to reduce the share of thermal and nuclear power in electricity production and expand renewable energy. The plan announced by former President Tsai Ing-wen upon her inauguration in 2016 to shut down all nuclear power plant reactors in Taiwan by 2025 and replace power generation with renewable energy is still ongoing.
President Lai Ching-te, inaugurated this year, has pledged to make Taiwan an 'AI Smart Island' during his term. He has promised stable power supply, diverse eco-friendly energy sources, and the establishment of Taiwan-specific data centers.
As power outages due to power shortages have repeated, Taiwan's Legislative Yuan Education and Culture Committee decided to review the 'Nuclear Reactor Facility Management and Control Act Amendment,' which focuses on postponing nuclear power plant decommissioning.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
