Taoyuan is moving to develop Guanyin into an AI computing park as demand for AI servers drives heavier power requirements and a new round of factory expansion. The city said it had coordinated with the Ministry of Economic Affairs and Taiwan Power Company to make full use of the Datan Power Plant and CPC's Third liquefied natural gas receiving terminal to support AI industry development.
The remarks came on the 11th at the ribbon-cutting ceremony for Compal Electronics' Taoyuan Daxi AI server manufacturing center. The facility is already in operation, and Compal said the project moved quickly because customers urgently needed additional capacity.
Compal said in May that it would invest NT$4.03 billion (US$124.5 million) in the Daxi plant, including real estate purchases, factory renovations, and new manufacturing equipment. The company used an existing factory site for the center, which is expected to reach full capacity in the second half of 2027.
Compal also said it will still need additional production bases after that point. The company's plans underline the pace of expansion underway in Taiwan's AI hardware supply chain as manufacturers add capacity for server production.
Taoyuan said the proposed Guanyin development would be Taiwan's only dedicated AI computing park and one of only a few in Asia. The city said data centers in the area could reduce their air-conditioning requirements by using cold energy released when liquefied natural gas is converted back into gas at CPC's receiving terminal, while local and central government industrial policies, together with infrastructure operated by CPC and Taipower, would help support the park.
Article edited by Ysi Chen
