Fitch says power, not chips, will decide Taiwan’s AI data centre growth

Taiwan has spent years becoming the factory floor of the AI boom. Now it is finding out that building the machines and plugging them in are two very different problems. Fitch Ratings says power availability will drive the growth of Taiwan’s AI data centres. A booming economy with a power problem Fitch affirmed Taiwan’s sovereign credit rating at ‘AA’ with a Stable outlook in July 2026. The agency pointed to strong economic growth powered by AI-related exports. GDP growth is projected to reach 9.4% for 2026. Taiwanese manufacturers account for nearly 90% of the global supply of AI servers. Fitch cautioned about energy security risks tied to Taiwan’s high dependence on imported energy sources. The grid is the gatekeeper As of November 2025, there were 79 applications for AI data centre power, totaling approximately 4,758 MW. Only 40 of those applications, covering about 3,033 MW, had been approved. Since 2024, northern Taiwan has had a freeze on new power applications above 5 MW because of grid constraints, particularly around Taoyuan. High-density AI loads have exceeded traditional industrial demand, which complicates where data centres can realistically go. Operational AI data cent...