Taiwan is aligning with a growing global trend, as nations and tech giants increasingly turn to nuclear power to meet the surging electrical demand driven by AI. Premier Cho Jung-Tai recently suggested that Taiwan maintains a "very open" attitude toward adopting new nuclear technologies, marking a potential shift in the government's stance on nuclear energy.
Official attitude shift in nuclear energy
In a recent interview with Bloomberg News, the premier indicated that as long as there is internal consensus on nuclear safety and clear direction, along with addressing nuclear waste management concerns, public discussions can proceed. He emphasized that Taiwan also aims to keep pace with global trends by adopting new nuclear technologies.
Although Cho stressed that there will be no shortage of industrial electricity in Taiwan before 2030, his comments highlight the government's softening stance on nuclear power. This is particularly relevant given the rapid development of AI technology, which has led to an increasing demand for electricity from Taiwan's semiconductor and tech industries, most notably TSMC.
Industry analysts project that with the accelerated growth of the AI industry, Taiwan is expected to experience a 13% increase in electricity demand by 2030.
Cho also mentioned that he would require Taipower to ensure that employees at decommissioned nuclear power plants retain their positions, preparing for future developments in new nuclear technologies. He underscored that this is a necessary measure in anticipation of potential legal changes.
However, reports suggest that the Taiwanese government's policy shift has not been accompanied by concrete actions. Whether Taiwan can alter its energy policy to meet future electricity demands remains to be seen.
Since 2024, Taiwan has raised electricity prices twice, with the latest increase taking effect in October, resulting in a 12.5% rise in industrial electricity costs. Nevertheless, TSMC Chairman C.C. Wei recently stated that the government has guaranteed sufficient electricity, water resources, and land to support the company's expansion. Nvidia CEO Jensen Huang also publicly remarked in June that Taiwan needs more electricity, as the company relies on TSMC to produce high-demand AI chips.
The first reactor at the Nuclear Power Plant No. 3 was decommissioned on July 27, and the second reactor is scheduled to shut down on May 17, 2025. At that point, Taiwan will officially enter a new era of "zero nuclear power." This transition began after the Fukushima nuclear disaster in Japan in 2011, which shifted public opinion in Taiwan against nuclear energy, forcing the government to halt all nuclear power construction plans.
Global nuclear renaissance driven by AI
Some analysts believe this policy contradicts global trends. Many countries are actively embracing nuclear energy to meet climate change goals while satisfying the enormous electricity demands associated with AI development.
Recently, major American tech giants such as Microsoft, Google, and Amazon have announced plans to incorporate nuclear energy into their strategies for increasing electricity supply. This includes Microsoft's assistance in restarting the Unit 1 reactor at the Three Mile Island plant in Pennsylvania and investments by Google and Amazon in small modular reactor (SMR) technology.
Additionally, the Philippines and South Korea will jointly assess the feasibility of restarting the Philippine nuclear power plant. Even Japan, the site of the Fukushima disaster, has local business groups urging the government to consider expanding nuclear capacity. In August, China approved the construction of 11 new nuclear reactors, with a total investment amounting to CNY220 billion (approx. US$30.9 billion).
