Microsoft to double Taiwan data centers as AI demand outpaces supply

微軟因AI需求超越供給 將台灣資料中心增加一倍

TAIPEI (Taiwan News) — Microsoft Taiwan General Manager Sean Pien (卞志祥) said Monday that demand for artificial intelligence computing capacity is expected to outpace supply over the next two to three years as the company expands its Taiwan data centers from two to four.

Speaking at Microsoft’s DevDays Asia 2026 conference in Taipei, Pien said the shortage involves more than graphics processing units and central processing units. It also includes electricity supply and space for new server racks, requiring the construction of new data centers and the restructuring of existing facilities, per UDN.

Pien said Taiwan’s supply chain would benefit from the global competition for computing power, citing the country’s role in AI servers, computing, storage, and networking.

He said he expects no major change in Taiwan’s role in the global computing supply chain in the short term and does not foresee its resources being significantly displaced by other regions. To address computing bottlenecks and meet local regulatory requirements, Microsoft is accelerating its data-center expansion in Taiwan, Pien said.

The number of services offered through Microsoft’s Taiwan data centers has increased from more than 70 to over 200, he said. The company is also expanding from two data centers to four, with the additional capacity expected to come online soon, per CNA.

Pien said enterprise customers using Microsoft’s Taiwan data centers can connect directly to the company’s global network. The facilities have attracted customers in highly regulated sectors and those with data-sovereignty requirements, including government agencies, healthcare, and finance.