Taiwan Shifts Toward Nuclear Energy as AI-Driven Demand Rises

Taiwan may restart one of its nuclear power plants as early as 2028, according to a statement from Economic Minister Kung Ming-hsin. The Maanshan facility could begin recommissioning procedures in early 2028, provided it passes a safety review and detailed plans are submitted. This marks a potential reversal of the island's long-standing anti-nuclear policy.

The government announced last week that it would draft proposals to restart two nuclear plants, including Maanshan, with Taiwan Power Co. expected to submit plans by March 2026. The Ministry of Economic Affairs confirmed the move in a statement, signaling a shift in energy strategy.

The decision follows a growing global trend toward nuclear energy as a clean power source and a surge in electricity demand driven by artificial intelligence and data centers. Tech firms such as Microsoft and Google are already investing in atomic energy for their operations.

Shift in Public and Political Sentiment

Public opinion in Taiwan appears to be shifting in favor of nuclear energy. About 75% of voters supported reopening the Maanshan plant in a national referendum in August, despite low turnout. Lawmakers also revised a law to allow nuclear plants to extend their operating licenses, providing a legal framework for restarts.

The phasing out of nuclear power began in 2016, with Maanshan being the last operational plant, which was shut down this year. The new policy reflects growing acceptance of nuclear energy as a low-carbon solution and a necessity amid rising electricity demand.

Strategic Response to Energy Demand

Taiwan is home to some of the world's largest chipmakers, including TSMC, which require a stable and clean energy supply. The island's energy crunch has drawn attention as AI development accelerates, increasing consumption. The government's decision to explore nuclear power comes as companies worldwide, including tech giants, seek long-term, low-emission energy solutions.

The move also aligns with global efforts to decarbonize energy systems. As countries seek alternatives to fossil fuels, nuclear power is gaining traction due to its reliability and scalability.

Financial and Market Implications

While nuclear power is central to Taiwan's energy strategy, the island's broader financial landscape is also evolving. The Buy Now Pay Later (BNPL) market is projected to grow at a 10.4% compound annual rate, reaching $2.1 billion by 2030. Companies like Shopee Taiwan, Atome, and Asia Pay are leading this sector's expansion.

Meanwhile, the energy sector is not immune to operational challenges. In the U.S., a government audit revealed years of timecard fraud at the Pantex nuclear weapons plant, leading to production delays and safety concerns. The scandal highlights the importance of transparency in critical infrastructure projects.

Outlook for Energy and Investment

The government's plan to restart nuclear facilities could attract new investment and bolster energy security. The decision to revisit atomic power also reflects a broader rethinking of energy strategies globally, where nuclear is being reconsidered as a key player in the transition to green energy.

For now, the success of Maanshan's recommissioning will depend on regulatory approvals and public confidence. With a robust framework in place and growing support, the plant could become a cornerstone of Taiwan's future energy mix.