Global Sustainability: AI Supply Chains Meet Energy Reality II

Research evidence excerpt

Global Sustainability: AI Supply Chains Meet Energy Reality II

Global Research

16 June 2026ab

Global Sustainability Equities

GlobalAI Supply Chains Meet Energy Reality II

Global Sustainability

Jarvis Lam

AI leaders are starting to talk about power Analyst

One of the key conclusions from our previous report was that electricity availability is jarvis.lam@ubs.com

becoming an increasingly important constraint on AI infrastructure deployment, given +852-2971 7701

Korean and Taiwanese dependence on Gulf LNG. In a recent Taiwan visit [link], NVIDIA Victoria Kalb

CEO Jensen Huang publicly stated that Taiwan would require additional electricity to Analyst

support future growth, alongside the announcement of a new Taiwan headquarters and vicki.kalb@ubs.com

expanded investment plans. +65-6495 4584

Randy Abrams

Taiwan says power supply remains sufficient; reserve margin low but stable Analyst

Taiwanese authorities responded quickly to Huang's remarks, reiterating that power randy.abrams@ubs.com

+886-2-8722 7338

supply remains adequate through 2032. Officials highlighted ongoing generation

additions and argued that future AI-related demand has already been incorporated into Timothy Arcuri

planning assumptions. More than 5GW of gas-fired capacity is expected to enter Analyst

operation by end-2026, while additional projects are scheduled through the remainder timothy.arcuri@ubs.com

+1-415-352 5676

of the decade. Also, Taiwan is at the early stage of a nuclear restart as discussed in our

previous note. From the reserve margin perspective, the Mar-May26 monthly low level Yong-Suk Son, CFA

remained ~10%, marginally better than the same period in 2025. Analyst

yongsuk.son@ubs.com

+82-2-3702 8804

Power demand growth double during 2026-35; 4M26 already above forecast