As artificial intelligence applications and model scales continue their rapid expansion, the technology industry faces a mounting infrastructure crisis: power supply cannot keep pace with demand. Time Magazine has declared there is no turning back from AI's unrelenting growth, yet this advancement comes at a steep cost—massive energy consumption that is pushing data centers to the limits of existing power grids.

The US government is beginning to grow cautious of AI data centers (AIDCs) because of their enormous pressure on power grids. In facing the hard limits of energy resources, policymakers will be forced to reallocate resources and shift priorities. If an AIDC cannot present a comprehensive power generation and consumption plan and relies solely on access to the public grid, the project is almost impossible to pass approval.

As South Korea accelerates its push to advance nuclear fusion research and move toward commercialization, experts are warning that the country's existing regulatory framework—largely designed for nuclear fission—could slow progress and undermine competitiveness.

Japanese trading house Sumitomo Corp. plans to double its investment in India's renewable energy sector, committing a total of JPY2 trillion (about US$13 billion) through a joint venture with local clean energy developer AMPIN Energy Transition, underscoring its growing focus on India as a key market for energy transition and industrial growth.

On December 11, 2025, Taiwan officially inaugurated its first hydrogen refueling infrastructure with the simultaneous opening of CPC Corporation's Nanzi station in Kaohsiung and Linde LienHwa Group's Shugu demonstration station in Tainan. The milestone signals a new chapter for Taiwan's hydrogen energy supply chain and practical use in transportation.

Despite rising offshore wind installation costs due to the pandemic and the Russia-Ukraine war, with some projects experiencing delays, offshore wind remains a critical option supporting Taiwan's energy independence and corporate green power demand. Developers emphasize strong industrial demand for green electricity but note that market information is insufficient. They call for establishing an independent, credible, and transparent third-party information platform to help buyers assess pricing and timing.

Amid a global push for carbon neutrality and soaring electricity demand, nuclear fusion is moving back into the spotlight—not as a distant scientific aspiration, but as a potential near-term solution. With major reactor projects delayed and energy needs growing, countries are reassessing the traditional Tokamak-based R&D path and seeking faster, more agile alternatives.

Academia Sinica, the highest academic institution in Taiwan, announced on December 10 that it has successfully discovered a deep geothermal heat source nearly 4,000 meters underground in a northeastern region of the country in collaboration with the state-owned CPC oil and gas company.

The global power equipment supply chain is facing a transformer shortage due to the unrelenting AI data center construction and demand for renewable energy. Delivery times for key equipment have been significantly extended, with some large transformers requiring as long as 24 months. This not only tests grid resilience but also creates challenges for major tech firms urgently seeking new power capacity.

Taiwan has set a goal for 30% of its energy to come from renewable sources by 2030, but the solar power sector is encountering mounting policy and public pressure that could slow its growth. After the Legislative Yuan passed three legal amendments regarding new solar power developments, foreign investors and local developers alike are concerned that the tighter regulations will increase uncertainty and hinder development in the solar industry in 2026.