TAIPEI (TVBS News) — Minister of Economic Affairs J.W. Kuo (郭智輝) addressed the Legislative Yuan on Wednesday (Dec. 25), revealing that large data centers exceeding 5MW will not prioritize Taiwan due to green energy considerations and electricity prices. However, he expressed support if major companies choose to establish facilities in the northern region.
Taiwan Power Company (Taipower, 台電) previously proposed halting the power supply for data centers over 5MW north of Taoyuan, sparking local leader concerns. During the Economics Committee's ongoing budget review for the Ministry of Economic Affairs (MOEA, 經濟部) earlier that day, Taiwan People's Party (TPP, 民眾黨) Legislator Chang Chi-kai(張啓楷) questioned potential power shortages in the north if companies like NVIDIA, Google, or Apple wish to set up information centers there.
Taipower Chairman Tseng Wen-sheng (曾文生) suggested AI companies with substantial power needs consider central or southern Taiwan, where renewable energy and grid balance are more favorable. Kuo assured support for NVIDIA or AMD facilities in Taipei or Taoyuan, noting these firms typically don't require 5MW. Kuo recommended southern Taiwan for factories due to challenges in the north, such as workforce and housing issues, but promised solutions if companies chose the north. Emphasizing AI and semiconductors as top trusted industries, he vowed ministry assistance for foreign investments.
Kuo noted Taiwan's higher electricity prices deter 5MW data centers, suggesting AI firms establish R&D centers instead. Future discussions could arise if expansions at the Kuo Kuang Power Plant and Keelung Hsieh-ho Power Plant proceed smoothly, easing northern data center constraints.