Why Taiwan is reconsidering nuclear power amid AI growth and China tensions

Why Taiwan is reconsidering nuclear power amid AI growth and China tensions

Just three months since shutting down its last reactor, Taiwan is poised for a referendum on restarting a unit at the Maanshan nuclear power station in the south. The referendum, triggered by opposition parties who control parliament, will ask citizens if they support reviving the reactor to operate given that regulators have approved it safe. The vote highlights Taiwan's long-standing anti-nuclear stance against the urgent need for electricity now, the Financial Times reported.

Energy security under attack

Taiwan relies on imports for more than 95 per cent of its energy, and therefore it is vulnerable to supply interruptions — most specifically in the case of a Chinese blockade. Military analysts warn that energy is the "weakest point" in Taiwan's resiliency. Reviving nuclear power, they believe, can help reduce that weakness. In contrast, however, global opinion is shifting: the U.S., Germany and Japan are rethinking nuclear strategy, suggesting a broader trend that Taiwan may find it difficult to ignore.

The AI-driven demand boom

The referendum comes at a moment when electricity use is at a record high. Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest maker of chips and dominant supplier for global AI development, already uses 12 per cent of Taiwan's electricity use. Growing as quickly as it is, demand will only rise further. Grid modernization has lagged behind, leading to increasingly more frequent outages. Power rates, previously among the lowest in the world, are increasing as the government struggles to trim losses at state utility TaiPower.

Shifting public opinion

Taiwan has long been against nuclear power, driven by earthquake risk, nuclear waste plant siting controversy, and Fukushima in 2011. The Democratic Progressive Party (DPP) built a large part of its identity on a promise to get rid of nuclear energy. President Lai Ching-te recently celebrated the shutdown of the last reactor as a "historic" occasion. But public opinion is shifting. Two-thirds now prefer nuclear power to help achieve net-zero emissions by 2050, a Taiwan Institute for Sustainable Energy Research survey found.

Environmental and economic trade-offs

The issue is that renewables are still far short of reaching government targets. Solar and wind together in the first half of 2025 contributed just 13 per cent of production, short of the target of 20 per cent. Natural gas supplied nearly half, and coal about 35 percent. To compensate for the shortage, TaiPower again operated two coal power plants, a step criticized as "absurd" by opponents of Taiwan's own climate commitments. Business leaders say reliance on fossil fuels will hurt exporters as carbon levies across the globe rise.

Factions in the party over new versus old nuclear

While pro-nuclear support grows, enthusiasm for extending the operation of an aging, 40-year-old reactor is less fervent. The DPP remains ardently against restarting Maanshan, which it labels as a safety risk. Even President Lai, however, has shown a willingness to consider new-generation nuclear technology that would address both emissions and reliability issues. Only the impact of the result of the referendum will last two years, and therefore the government could practically stave off implementation by conducting long-term safety studies.

Global voices have their say

Foreign leaders and business leaders are urging Taiwan to reconsider its approach. The head of Nvidia, Jensen Huang, whose company relies on TSMC's semiconductor output, has referred to nuclear power as "an excellent option" to provide energy needs enabled by AI in recent times. Washington security commentators have seconded that view, implying Taiwan's dependence on foreign fuel as a probable weak link in any war with Beijing.

A politicized choice

Domestically, the case is split between economic viability and environmental concerns. Opponents of the nuclear power plant argue that earthquake and waste-disposal risks remain too great. The supporters respond that Taiwan cannot continue to depend on coal and gas if it hopes to be competitive. The outcome of the referendum on Saturday, while not legally binding in the long term, will show how much the Taiwanese are willing to defy decades of anti-nuclear policy in the midst of technological and geopolitical pressure.

Taiwan's Maanshan referendum is a broader turning point for the island. Nuclear power, once ruled out as a political impossibility, is once again on the table because of the double whammy of AI-driven energy demand and the shadow of China. Whether it is voters voting to extend the life of an aging reactor or forcing new technologies into existence, the controversy underscores that energy security is no longer an afterthought — it is now central to Taiwan's economic future and strategic survival.