TLDRs;
- Taiwan faces surging electricity demand from AI and semiconductors, raising urgent debates over nuclear energy’s future role.
- Nvidia CEO Jensen Huang suggests Taiwan consider nuclear alongside solar and wind to ensure reliable energy supply.
- A national referendum will decide whether to restart one nuclear reactor after years of phase-outs.
- Historical nuclear weapons ties complicate Taiwan’s energy debate, but rising AI demand could force policy shifts.
Nvidia’s co-founder and CEO, Jensen Huang, has urged Taiwan to revisit its nuclear energy policy as the island braces for a sharp increase in electricity consumption driven by artificial intelligence (AI) and semiconductor manufacturing.
Speaking at an airport briefing in Taipei, Huang emphasized that nuclear power, alongside solar and wind, could form a critical part of Taiwan’s future energy mix.
His remarks arrive just as Taiwan prepares for a crucial referendum on whether to restart one of its shuttered nuclear reactors. The vote, scheduled for Saturday, comes amid intensifying debates over how Taiwan can secure enough energy to power its role as a global technology hub.
Taiwan’s Energy Crossroads
Taiwan officially shut down its last operational nuclear plant in May 2025, marking the culmination of a decades-long policy to phase out atomic energy.
While the decision aligned with public safety concerns, particularly after Japan’s 2011 Fukushima disaster, other countries have since embraced nuclear power as a low-carbon alternative to fossil fuels.
The looming referendum could signal a shift. If voters approve restarting a reactor, it would mark Taiwan’s first reversal of its anti-nuclear stance in years. However, a similar referendum in 2021 upheld the closure of another plant, underscoring the political and societal divisions surrounding nuclear energy on the island.
AI Factories Add Pressure to Grid
Taiwan’s energy debate is unfolding against a backdrop of skyrocketing demand from AI and data centers. Nvidia, which recently announced plans to build an AI factory in Taiwan with Foxconn, is at the center of this transformation. These facilities are expected to consume vast amounts of electricity, placing additional strain on an already stretched power grid.
The International Energy Agency (IEA) estimates that global electricity demand from data centers, AI, and cryptocurrency could triple by 2028. For Taiwan, a country heavily invested in semiconductor and AI-driven industries, the pressure is particularly acute. The mismatch between rising demand and the phase-out of stable nuclear baseload power has left policymakers scrambling for alternatives.
Nuclear Hesitancy Has Deep Roots
Taiwan’s skepticism toward nuclear power extends beyond recent disasters. From the late 1960s through the 1980s, the island covertly pursued nuclear weapons development. By the mid-1980s, Taiwan was reportedly only months away from being able to produce nuclear weapons “on demand” before the U.S. intervened and forced the program’s dismantlement.
This historical baggage has left nuclear energy politically sensitive. For many in Taiwan, the issue intertwines with national security, public safety, and international relations. Yet, as energy demand surges, pressure is mounting on leaders to weigh those concerns against the economic risks of energy shortages.
Outlook for Taiwan’s Energy Future
If Taiwan’s referendum opens the door to reviving nuclear power, it could mark a turning point in the island’s energy policy. Huang’s comments suggest that tech leaders are prepared to back such a shift, seeing reliable energy as indispensable for AI-driven growth.
Still, nuclear is just one piece of a larger puzzle. Policymakers must balance investments in renewables, grid modernization, and energy imports with the political and societal realities of revisiting nuclear power. With Taiwan positioned at the heart of global tech supply chains, the outcome of this debate will have consequences far beyond its borders.
