Taiwan adjusts energy and circular economy strategies to meet AI demand

Taiwan is adjusting its energy and resource strategies to accommodate the rapid growth of the artificial intelligence industry. Premier Cho Jung-tai announced that the projected annual electricity demand growth rate through 2035 has been revised upward from 1.7% to 2.5%, with further adjustments expected to ensure a “safer number” for the nation.

To meet these demands, the government is exploring various energy options, including the potential restart of traditional nuclear power under strict safety and consensus-based principles, as well as openness to new technologies like Small Modular Reactors (SMRs) and nuclear fusion. Additionally, the government is investing 564.5 billion TWD over ten years to enhance grid resilience and develop regional microgrids paired with energy storage.

Parallel to energy security, Taiwan is advancing its circular economy through the integration of AI. At the 2026 Taiwan Circular Economy Week, officials highlighted how AI can optimize resource recycling, from product design to waste management. Initiatives include using AI to match sustainable materials for businesses and utilizing agricultural byproducts for high-value industrial applications, aiming to strengthen Taiwan's position in the global green supply chain.