As artificial intelligence chip power consumption continues to rise, server racks are moving toward the megawatt (MW) scale. Amid the "electrical power is computing power" trend, the importance of power electronics is increasing, while the overall power system also faces significant upgrade requirements.
Electricity consumption at AI data centers (AIDCs) is growing rapidly. Power management industry insiders said that a 45 MW AIDC consumes roughly 4.5% of the generation capacity of Taiwan's No.3 nuclear power plant.
To ease pressure on Taiwan's northern power grid, Taiwan Power Company (Taipower) announced in 2024 that, in principle, it would no longer approve power supply for data centers requiring more than 5 MW of power in areas north of Taoyuan, Taiwan. It also stated that AIDCs with higher electricity demand should be built near power plants.
Taipower explained that the previous restrictions on hyperscale data centers requiring more than 5 MW north of Taoyuan were mainly because units 7, 8, and 9 of the Datan Power Plant had not yet come online and the third liquefied natural gas (LNG) receiving terminal had not yet been completed.
Now that the relevant units are operational and the third terminal has begun receiving LNG shipments, Taiwan's Ministry of Economic Affairs (MOEA) and Taipower are continuing discussions with local governments regarding plans to establish an AIDC industrial park in Taoyuan, and are evaluating the possibility of easing the restrictions on such facilities.
Century Group secured 83,000 ping (approx. 274,340 square meters) of land in Taoyuan's Guanyin Industrial Park in January 2026. Century Wind Power chairman Wen-hsiang Lai said the site is about 5 kilometers from the Datan Power Plant. The company has held discussions with multiple companies regarding construction plans for an AIDC, power generation, and logistics demonstration centers.
Lai said the company will also evaluate future expansion into AIDCs, solar power, and other areas.
Responding to calls from the industry to ease restrictions on supplying power to AI projects in northern Taiwan, Taipower emphasized that, according to the national electric power resource plan, there is currently sufficient capacity for power development.
However, given the time required for long-distance power transmission and grid construction, it recommends adopting a "power couple" model to encourage AI and AIDC operators to locate in areas with sufficient power supply or around major power plants, reducing losses from long-distance transmission and the burden on the power grid.
Taipower also promotes the concept of "replacing power flows with information flows." Rather than spending heavily on relatively inefficient long-distance transmission infrastructure to deliver electricity to northern Taiwan, it argues that AIDCs should instead be located near power hubs or around power plants in central and southern Taiwan, where electricity supplies are more abundant, with data transmitted over communications networks. This approach would offer greater advantages in terms of both economic costs and overall efficiency.
Article translated by Eifeh Strom and edited by Ysi Chen
