AI's growing appetite for power reshapes Taiwan's service sector energy use

The energy consumption landscape in Taiwan's service sector is undergoing a significant transformation, largely driven by the burgeoning demand for artificial intelligence. Traditionally dominated by shopping malls and retail, the sector's electricity usage is increasingly shifting towards digital industries, particularly information and communication technology (ICT) and cloud services.

While the immense power requirements of AI for semiconductor manufacturing have garnered considerable attention, its influence is now extending deeply into the service industry. The continuous operation of GPU servers, data centers, and network infrastructure, essential for AI searches, customer service bots, generative AI, and video streaming, is fueling a steady rise in electricity demand.

Statistics from Taiwan's Energy Administration reveal that the service sector consumed nearly 50 billion kilowatt-hours last year, making it the third-largest energy-consuming sector after industry and residential use. Within the service sector, the "Publishing, Audio-Visual, and Information and Communication Industries" have experienced the most notable growth in electricity consumption. This surge is attributed to the digital shift in the publishing industry and the expanding need for information equipment, data processing, and cloud services.

This sub-sector's share of service industry electricity consumption rose from 8.3% in 2021 to an estimated 8.7% in 2025. Notably, in the first four months of the current year, this figure has already climbed to nearly 10%. Although wholesale and retail remain the largest electricity consumers within the service sector, accounting for approximately 11.9 to 12 billion kilowatt-hours annually, the rapid growth in the ICT and cloud services segment signals a clear change in the sector's energy profile.