Where Should AIDC Be Built? Kung Ming-hsin Offers Solution: Northern Grid Constraints Make Central and Southern Taiwan Ideal Locations

Economic Minister Kung Ming-hsin addressed the media today (27) ahead of the Ministry of Economic Affairs' regular meeting, discussing key industrial topics such as site selection criteria for AI data centers (AIDC) and the Electrical and Electronic Manufacturers' Association's efforts to promote overseas science parks. Regarding the siting direction for power-intensive AIDC facilities, he announced for the first time that the Ministry will introduce clearer and more detailed site guidance regulations to assist AIDCs in smoothly 'landing' in Taiwan.

On AIDC site planning, Kung emphasized that Taipower has clearly stated that areas north of Hsinchu face power grid bottlenecks, requiring special review for large-scale AI data center installations. In contrast, central and southern Taiwan do not face such regulatory constraints, with power supply capacity better suited to meet high-capacity demands. The Ministry is currently holding discussions with enterprises interested in establishing data centers to understand their actual needs and operational considerations. It will subsequently issue more precise and comprehensive site selection guidelines to help businesses achieve optimal balance between grid resilience and regional resources, ensuring the successful establishment of critical AI infrastructure.

Additionally, regarding the Electrical and Electronic Manufacturers' Association's active promotion of a Mexican overseas science park, Kung confirmed that the site selection in Mexico has been largely finalized, with the association having already hosted explanatory meetings to inform the public.

Kung stated that in addition to sending officials to participate in related activities, the Ministry of Economic Affairs will fully support enterprises requiring official assistance during overseas factory setup, investment promotion, or negotiations with local governments. This includes providing necessary cross-border coordination support, such as establishing solid communication channels with foreign governments. Should further investment promotion be needed, the Ministry will cooperate in co-hosting events to assist Taiwan's electronic components and ICT industries in perfecting their global supply chain布局 and deepening economic partnerships with the U.S. and North America.