Japan sees need for sharp hike in power output by 2050 to meet demand from AI, chip plants

Japan sees need for sharp hike in power output by 2050 to meet demand from AI, chip plants

Tokyo: According to the government, Japan needs to see an increase in electricity output of 35 % to 50 % by 2050 as a result of the country’s growing demand for semiconductor factories and data centers that support artificial intelligence ( AI ).

To meet demand as Japan establishes more data centers, chip factories, and other energy-consuming enterprises, the government said in a document released late on Monday ( May 13 ) that the output should increase from the projected 1 trillion kilowatt-hours (k Wh ) output for the current decade to about 1.35-1.5 trillion kWh in 2050.

According to the document, the demand increase would be the first in 20 years and may necessitate significant power-source investments.

As the state began developing a new decarbonization and business plan by 2040, which it intends to finalize by the end of March, steady supply of power may be ambiguous, according to the authorities.

A law passed last year in Japan that promotes decarbonization purchases totaling more than 150 trillion yen ( US$ 962 billion ) in the public and private businesses over the course of ten years, is a major reliance on the Middle East for fossil fuel resources.

According to the report, the nation is relying on the introduction of next-generation units, floating offshore wind farms, resets of nuclear power plants, and the development of perovskite solar cells to meet the demand.