The increasing power demands of AI data centers are prompting operators to expand carbon-free energy initiatives and advance liquid cooling technologies to enhance energy efficiency and reduce consumption. Industry leaders emphasize that ensuring an uninterrupted power supply is the first crucial step in establishing AI data centers in Taiwan.
Concerns over power shortages often arise during summer peaks, and 2024 has seen heightened discussions as global tech giants plan to establish data centers in Taiwan. According to the Ministry of Economic Affairs' 2023 National Power Supply and Demand Report, electricity demand for AI applications in Taiwan is forecasted to surge from 240 MW in 2023 to 2,240 MW by 2028, an increase of over eightfold.
Data centers' power needs are driven primarily by server operations and cooling systems. Industry insiders highlight that power stability is the top priority when choosing a data center location. In early planning stages, projects must be submitted to Taipower for review before proceeding with other construction details.
On the supply side, tech behemoths such as Amazon, Microsoft, and Google are pushing toward carbon-neutral energy sources, including nuclear power in Taiwan, which remains controversial. A case in point is Microsoft's recent agreement with Constellation to restart the Unit 1 reactor at Pennsylvania's Three Mile Island nuclear plant to power its AI and cloud computing operations.
In terms of energy efficiency, air cooling remains the prevailing server cooling method. However, to improve efficiency, many leading firms are shifting toward liquid and immersion cooling technologies, significantly lowering power usage effectiveness (PUE).
According to DIGITIMES Research, about 80% of a data center's electricity consumption stems from server operations and cooling. Liquid cooling, especially immersion cooling, can slash a data center's PUE to between 1.02 and 1.05. Globally, governments are increasingly regulating data centers by setting stringent PUE benchmarks, with new builds required to maintain PUE levels below 1.4.
The International Telecommunication Union (ITU) and the World Bank have outlined six key strategies for green data center transformation: climate resilience, sustainable design and construction, renewable energy, sustainable cooling, and electronic waste management.
Beyond ensuring power stability, data center operators are also focused on securing renewable energy sources. Taiwan's energy policy, which emphasizes a nuclear-free transition, has driven aggressive renewable energy development. With international companies flocking to Taiwan to establish data centers, securing early access to green energy has become a priority.
Energy providers note a marked increase in inquiries for green energy from data centers. However, discussions are still in preliminary stages, and given that customers often purchase green power in bulk, suppliers remain unsure whether this energy will be exclusively allocated to data center operations. Further commentary remains premature.
