Taiwan Power Company (Taipower) is drafting a new set of guidelines aimed at safeguarding grid stability as electricity demand from AI data centers accelerates.
Corporate demand for green electricity is accelerating as Taiwan prepares to implement carbon fees in 2026 and as the European Union's Carbon Border Adjustment Mechanism (CBAM) reshapes export requirements. Data from Taiwan Power Company (Taipower) show that direct supply of green power has risen sharply in recent years, a trend the utility expects to continue as net-zero pressures intensify across supply chains.
As AI workloads reshape data center design, performance is no longer defined solely by computing power. Thermal management has emerged as an equally decisive battleground. Unlike traditional CPU-centric systems, modern AI servers rely heavily on GPUs and specialized accelerators, each drawing hundreds of watts per chip. The resulting thermal density far exceeds the limits of conventional air-cooling, turning heat dissipation into a core infrastructure challenge rather than a peripheral engineering concern.
Shihlin Electric is experiencing robust growth driven by expanding AI computing power needs and accelerated investment in power infrastructure. At HCT Logistics' smart electric vehicle (EV) launch event on December 18, 2025, Shihlin Electric showcased its commercial electric logistics fleet developed with CMC, alongside an integrated solar, charging, and energy storage power system.
Taiwan's Academia Sinica is pushing forward its public infrastructure project launched in 2025, focused on a megawatt-scale mixed hydrogen power generation system using decarbonized natural gas. The initiative aims to produce clean energy while addressing Taiwan's pressing green energy shortfall through innovative hydrogen technology.
Low-priced imported cement continues to undermine Taiwan's domestic low-carbon cement development, prompting TCC Group Holdings chairman Nelson An-ping Chang to propose two key recommendations ahead of the upcoming 2026 trial launch of Taiwan's carbon border adjustment mechanism (CBAM). He called for strict enforcement of a single material source rule in public projects and mandatory third-party international certification for imported cement, warning that without these measures, inspection mechanisms risk becoming ineffective.
Taiwan-based Singtex Industrial, a supplier of eco-friendly functional textiles, has begun mass production at its newly invested polyester dyeing and finishing facility in northern Taiwan, marking a major step in its vertical integration strategy even as near-term margins remain under pressure during the capacity ramp-up phase.
AI data centers (AIDCs) in the US are reshaping power dynamics between energy and technology sectors. Although they were once considered a cornerstone of cloud services and AI, it has become clear that their unrelenting power consumption has caused electricity bills to skyrocket. According to January 2025 statistics from the National Energy Assistance Directors Association (NEADA), the national average electricity bill in the US has risen by around 11%, roughly three times the overall inflation rate. In the first half of 2025, approximately 14 million people nationwide were behind on their electricity bills, with average debts reaching US$789, an increase of about 30% year-over-year compared with 2022.
As artificial intelligence applications and model scales continue their rapid expansion, the technology industry faces a mounting infrastructure crisis: power supply cannot keep pace with demand. Time Magazine has declared there is no turning back from AI's unrelenting growth, yet this advancement comes at a steep cost—massive energy consumption that is pushing data centers to the limits of existing power grids.
The US government is beginning to grow cautious of AI data centers (AIDCs) because of their enormous pressure on power grids. In facing the hard limits of energy resources, policymakers will be forced to reallocate resources and shift priorities. If an AIDC cannot present a comprehensive power generation and consumption plan and relies solely on access to the public grid, the project is almost impossible to pass approval.
As South Korea accelerates its push to advance nuclear fusion research and move toward commercialization, experts are warning that the country's existing regulatory framework—largely designed for nuclear fission—could slow progress and undermine competitiveness.
More coverage
