Taiwan Weighs Central, Southern Sites for AI Data Centers

The rapid expansion of generative artificial intelligence and cloud computing is turning large AI data centers into a major new source of electricity demand. Site selection increasingly depends not only on land and network connectivity, but also on grid capacity, proximity to power generation and supply reliability. In Taiwan, where electricity consumption is concentrated in the north, additional large loads could further strain the regional grid and reshape investment decisions.

Economics Minister Kung Ming-hsin said Taiwan plans to steer future large AI data centers closer to power sources, with central and southern regions offering better conditions than the grid-constrained north. The Ministry of Economic Affairs is assessing multiple demand scenarios as AI-related electricity use grows. Officials are also studying dedicated power lines and microgrids to improve supply efficiency and resilience for energy-intensive facilities.