Taiwan Power's backup plan becomes AI industry's main energy source

Taiwan Power Company's (Taipower) chairman, Tseng Wen-sheng, revealed that a backup plan for direct power supply from power plants to science parks has unexpectedly become the primary resource for the burgeoning AI industry. Initially conceived after the March 303 blackout in 2022 to alleviate grid congestion and disperse risk, the "power plant direct supply to science parks" initiative has now become essential for powering AI development. Tseng explained that this plan, which involves dedicated transmission lines from power plants like Datan to the Taoyuan Aerotropolis, Tongxiao to the Hsinchu Science Park, and Hsing-ta to the Southern Science Park, was initially a contingency measure. "If we hadn't done it then, grid transmission would be the biggest problem today," he stated, highlighting its current critical role. He further elaborated that for AI data centers (AIDC), the most stable power supply is achieved by being located as close as possible to power plants. The high and rapidly fluctuating energy demands of AIDC place significant pressure on regional power grids, leading many countries to implement regulations for their siting. This initiative, born out of a need for grid resilience, has inadvertently positioned Taiwan to capitalize on the AI boom by ensuring a stable and direct power source.