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on May 14th

Japan: AI and semiconductor factories have seen a significant increase in electricity demand, with power supply increasing by 35% to 50%

The Japanese government predicts that due to the increasing demand for electricity in semiconductor factories and data centers supporting artificial intelligence (AI), Japan's electricity output will need to increase by 35% to 50% by 2050.


The Japanese government announced in a document released on Monday evening (May 13) that in order to meet Japan's demand for establishing more data centers, chip manufacturing plants, and other energy consuming enterprises, electricity supply should increase from the current ten-year estimated 1 trillion kilowatt hours (kWh) to approximately 1.35 trillion to 1.5 trillion kWh by 2050.

The document states that the increase in demand will be the first in 20 years and requires large-scale investment in electricity sources.

The Japanese government has stated that stable electricity supply may be uncertain unless Japan increases its renewable energy output, as it begins planning a new decarbonization and industrial policy strategy until 2040 and plans to complete it by the end of March.

Japan heavily relies on the supply of fossil fuels from the Middle East and passed a law last year aimed at promoting a total of over 15 trillion yen (approximately 962 billion US dollars) in decarbonization investments by both the public and private sectors over the next 10 years.

Japan hopes to meet its electricity demand with the introduction of next-generation solar cells (i.e. perovskite solar cells), floating offshore wind farms, nuclear power plants, and next-generation reactors.
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