Taiwan Power Co. Plans 43 New Substations for AI Demand

Taiwan Power Co. plans to construct 43 substations and approximately 1,922 kilometers of new power lines over the next 15 years to meet rising electricity demand. Chairman Tseng Wen-sheng announced the expansion during the Energy Taiwan forum in Taipei, noting that the pace of construction—averaging three substations per year—is "unprecedented."

The surge in power requirements is primarily driven by the growth of artificial intelligence and semiconductor manufacturing, including chip fabrication, memory production, packaging, and server production. Tseng highlighted the difficulty of grid construction by citing the Songhu substation in Taipei, which only broke ground last month after 26 years of planning.

To reduce costs and avoid further delays, the utility is urging large data centers to locate near power plants. The company is also coordinating investment schedules with major industrial users to ensure that infrastructure development aligns with the pace of industrial expansion.