Delta Sustainability AI Summit: Jason Cheng Highlights Microgrids as Key Focus, Foresees Three Major Application Demands

Delta Electronics (2308-TW) hosted the 'Delta 55th Anniversary Sustainable AI Summit' today (7th). Chairman Jason Cheng stated in his keynote speech that with the continuous rise in global electrification, coupled with growing demands from AI data centers, electric vehicles, and corporate energy-saving needs, there remains substantial room for growth in this sector. Delta Electronics will introduce a comprehensive microgrid solution this year, which will be a key focus for development in the coming years.

Cheng noted that past COP meetings primarily focused on energy transition, but COP31 this year further integrates electrification and emissions reduction into a unified discussion, setting a target of achieving 35% electrification by 2035. However, current electrification levels among major industrialized nations range between 20% and 30%, indicating significant growth potential ahead.

In the United States, electrification stands at approximately 22%, limited by stagnant electricity demand and grid infrastructure constraints. Europe's electrification rate is similarly low due to electricity pricing and tax policies, but the European Union announced in July this year its goal to double electrification to 46% by 2040.

China has rapidly advanced its electrification, increasing from 14% to 28% over the past decade. Taiwan, driven by the continued expansion of its electronics industry capacity, has reached about 35% electrification. Approximately 65% of energy usage remains non-electrified, concentrated mainly in industrial, transportation, and residential sectors. Accelerated adoption of electric vehicles would drive a significant shift in energy demand from fossil fuels to electricity in transportation. The industrial sector also presents vast opportunities for electrification and energy efficiency improvements.

Cheng emphasized that the prerequisite for electrification is 'having electricity first.' Power transformation requires not only increased renewable energy generation but also energy storage systems to maintain supply-demand balance. In recent years, energy storage installations have grown approximately 30-fold, with costs declining rapidly. As countries continue to raise renewable energy targets, energy storage will become critical infrastructure supporting the energy transition.

Future increases in electricity demand will primarily center on electric vehicles, the currently hottest topic—AI data centers—and corporate energy efficiency. AI data centers currently consume large amounts of power, leading many countries to require companies building data centers to secure their own power supply. This involves a broad scope, including improving internal energy efficiency within data centers, constructing power supply systems, and developing microgrids dedicated to data centers—areas rich with opportunities and challenges requiring breakthroughs.

While electric vehicle adoption has seen some stagnation in the past two years, last year alone saw 30% of new car sales already electrified. The trend toward electrification is irreversible and will continue advancing steadily. Buildings have historically received less attention, but advanced nations are increasingly focusing on building electricity usage, with more regulations mandating improved energy efficiency. This area is particularly important because buildings account for a very high proportion of electricity consumption.

With rising electrification demand, Cheng believes microgrids must seamlessly integrate transmission, distribution, and consumption to ultimately enhance energy efficiency and achieve carbon reduction goals. Delta Electronics has long provided solutions for smart factories, data centers, and commercial buildings. The company is now accelerating the deployment of microgrids and intelligent AI-related solutions, leveraging new technologies to strengthen overall energy resilience on both the demand and supply sides.