Data center energy demand in Taiwan is set to surge by 2030, according to the country’s Ministry of Economic Affairs.

According to reporting from UDN, the ministry has forecast that the island's overall power consumption is set to rise by 13 percent by 2030, compared to 2023, mainly driven by the data center and semiconductor manufacturing sectors. A major driver in this will be the growth of AI data centers, with power demand emanating from that sector expected to soar eightfold to 223kW by 2028, compared to 2023.

In total, the ministry forecast that by 2030, electricity demand from AI data centers and computing facilities in Taiwan could reach 1GW. As a result, the government has said it will tighten reviews of data center projects with a capacity of more than 5MW and encourage companies to use and invest in low-carbon power sources.

The Taiwanese grid has already been struggling to meet demand, with state-owned utility Taipower suspending applications for data centers with a capacity of more than 5MW in areas north of Taoyuan since August 2023. Taipower has subsequently encouraged data center operators to site their facilities in central and southern Taiwan due to better grid capacity.

Chipmaking giant TSMC remains one of the largest power consumers in the country, consuming between eight and nine percent of the country’s total electricity. Estimates have the company consuming upwards of 24 percent by 2030.

Historically, Taiwan has been highly dependent on energy imports for its power generation, with imports accounting for approximately 95 percent of its generation. To remedy this, the country is attempting to diversify its energy mix, aiming for 50 percent natural gas, 27 percent coal, and 20 percent renewables by this year. However, in its latest report on the matter, the Ministry of Economic Affairs reported that natural gas accounted for 47.8 percent of electricity generation in 2025, coal 35.4 percent, and renewables 13.1 percent.