Impact of AI Development on Taiwan's Economy and Energy Demand

This document is a research report that outlines the implications of artificial intelligence (AI) development on Taiwan's economy and electricity demand. It begins by discussing the significant role of data centers in the anticipated global increase in electricity demand by 2030. The research question focuses on the potential effects of AI on various industries and energy consumption in Taiwan, a crucial semiconductor producer. The methodology involves input-output analysis to assess impacts across numerous sectors. The report details how AI investment spurs industrial growth, boosts electricity demand, and raises carbon emissions, particularly in high-output sectors like semiconductors. It concludes that while AI contributes positively to economic growth, it also heightens carbon emissions in energy-intensive industries, urging the need for improved energy efficiency and planning for power supply development. The findings emphasize the necessity for energy demand management strategies to accommodate the expected rise in electricity use.