TAIWAN-ENERGY-ELECTRICITY
AI data centers and semiconductor manufacturing continue to drive up electricity demand, and the global supply of power generation equipment is tight, making Taiwan's power infrastructure, grid resilience, and power supply stability a focus of attention.

The rapid expansion of artificial intelligence (AI) data centers is putting fresh pressure on global power supplies and the energy equipment industry. Taiwan Power Co. said large gas-fired generating units are in short supply worldwide, with delivery times extending significantly and prices rising sharply. Building new power sources and expanding the grid have become major challenges in supporting the growth of the AI industry.

According to Central News Agency reports, Taipower Deputy General Manager Cheng Ching-hung said on Oct. 15 that major manufacturers of large gas-fired generating units worldwide have annual production capacity of about 60-70 GW, while orders received in the previous year had already exceeded 110 GW. Delivery times have lengthened from about two years in the past to more than four years, while prices have risen by roughly three to four times.

AI data centers require large amounts of stable electricity, while semiconductor manufacturing also has stringent requirements for power quality and reliability. As technology companies around the world accelerate the construction of computing facilities, the pace of electricity demand growth is putting pressure on the supply of power generation equipment, as well as the construction of transmission lines and substations.

Taipower said transformers, the power grid and transmission facilities are also facing challenges involving supply and construction schedules, in addition to generating units. Some data center operators want to speed up the installation of power lines and construction of substations, but power infrastructure projects involve equipment procurement, land acquisition and coordination among construction projects. They must be planned in tandem to ensure electricity can be supplied on schedule.

For Taiwan, the AI and semiconductor industries are important drivers of economic growth. However, rising electricity demand will also test energy policy, grid resilience and the efficiency of infrastructure investment. How to balance supply reliability, the energy transition, construction costs and industrial demand will be a challenge for the government and businesses in the years ahead.