How Taiwan's energy stocks can ride the AI power wave: 2026 investment layout guide

As the world moves toward net-zero emissions and AI computing power experiences explosive growth, Taiwan’s energy stocks are facing unprecedented investment opportunities. In the past, renewable energy investments mainly relied on policy subsidies and economies of scale, but the game has changed by 2026—power demands for AI model training and data centers are fundamentally transforming the traditional energy landscape. Local Taiwanese energy companies are also finding new growth engines amid this wave.

AI Power Demand Forcing Upgrades in Energy Business Models

To understand why Taiwan’s energy stocks are worth attention, first grasp the massive changes in global electricity demand.

According to the latest forecasts from IEA and Goldman Sachs, global data center electricity consumption will surge from 460 TWh in 2022 to about 1,050 TWh this year, with AI-related growth contributing over half of that increase. This is more than just numbers—training a large AI model can consume thousands of MWh, equivalent to the annual electricity use of tens of thousands of households.

The following comparison clearly shows the energy consumption differences between traditional data centers and AI clusters:

The key takeaway: traditional wind and solar power cannot meet the 24/7 stable supply needs of AI data centers. Nuclear power and grid upgrades are becoming new focal points. For Taiwan’s energy stocks, this signals a shift from “scale of capacity” to “stability and technological upgrading” as a strategic window.

Three Investment Directions for Taiwan’s Energy Stocks

Nuclear and Small Modular Reactors (SMRs): Infrastructure Long-term Certainty

Why are Microsoft, Amazon, and Google heavily investing in nuclear power since 2025? The answer is simple—AI data centers require uninterrupted 24/7 power supply. Microsoft has signed fusion agreements with Helion Energy; Amazon invests in X-energy and plans to deploy 12 SMRs with a total capacity of 960 MW; Google commits to tripling its nuclear capacity.

This global nuclear investment surge offers Taiwan’s energy stocks opportunities through supply chain expansion and technological iteration. Goldman Sachs forecasts that by 2030, data center demand for nuclear power could reach tens of GW. SMRs, with their factory prefabrication, rapid deployment, and high safety, are ideal for siting near data centers, significantly boosting related equipment and component supply chains.

Grid Upgrades: “Easy to Generate, Hard to Transmit” as a Core Bottleneck

Many investors overlook a critical fact: aging power grids worldwide are a major constraint. Delivery times for high-voltage transformers and switchgear are still 2-3 years. Companies like Hitachi Energy have invested billions of dollars to expand capacity, but supply shortages are expected to persist until at least 2027.

US electric utilities’ revenue growth rate is rising from a historical average of 1% to 4-6%, driven by data centers’ share of total US electricity rising from 4% in 2023 to over 8%. For Taiwan’s energy stocks, TPC’s ten-year “Strengthening Grid Resilience” plan (with an investment of NT$564.5 billion) is actively modernizing the grid. High-margin, long-order visibility grid equipment manufacturers and power operators will directly benefit.

Green Energy Transition: Long-term Defensive Allocation

While AI power demand is grabbing headlines, the long-term goal of global net-zero emissions (achieving greenhouse gas neutrality by 2050) remains unchanged. UN and IEA forecasts indicate renewable energy will account for nearly 50% of global electricity by 2030. After overcapacity and price wars, traditional solar and wind power have entered a phase of supply stabilization, cost reduction, and demand recovery. These assets tend to be less volatile, making them suitable as defensive components in a renewable energy portfolio.

Selected Analysis of Taiwan’s Energy Stocks: Finding Beneficiaries in the AI Era

1. Delta Electronics (2308): Leader in Power Electronics and Data Center Power Supply

Delta provides UPS uninterruptible power supplies, inverters, and smart grid solutions—direct beneficiaries of high-power-density AI servers. Orders surged in 2025, and strong growth is expected to continue this year.

In automotive electronics, Delta has established a significant presence—75% of the top 20 global automakers are its clients. As EV penetration increases and certification barriers remain high, Delta’s automotive electronics revenue is poised for substantial growth.

2. Walsin Electric (1519): Core Beneficiary of Taiwan Grid Upgrades

Walsin is a long-term partner of TPC, supplying transformers and related products, and is a leading domestic transformer manufacturer. The ten-year “Grid Resilience” plan will directly boost Walsin’s order visibility and revenue.

Additionally, Walsin controls nearly 20% of Taiwan’s EV charging station market. As EV adoption accelerates, demand for charging infrastructure will grow, providing another growth pillar. The US government is actively relocating power equipment manufacturing back home, and regional demand in Southeast Asia (Vietnam, Japan) is also rising—Walsin benefits from these growth trends.

3. United Renewable Energy (3576): Beneficiary of Solar Module Technology Upgrades

United Renewable is a leading domestic solar cell manufacturer. After capacity optimization in 2025, gross margins are expected to recover. Currently, it benefits from anti-dumping tariffs in Europe and the US, as well as PERC to TOPCon technology upgrades, with overseas module shipments expected to grow over 15%.

Its vertical integration provides a competitive edge. With global solar demand recovering steadily (IEA forecasts over 500 GW of new capacity this year), long-term EPS growth remains stable, making it a classic green energy stock.

4. Sunwoda (4733): Infrastructure Provider in Wind Power Industry Chain

Sunwoda is a leading manufacturer of wind turbine blade materials, with high market share in epoxy resins and carbon fiber composites. This year, Taiwan’s offshore wind projects (Phase 3) and development in Asia-Pacific markets (Vietnam, Japan) are accelerating. Its order backlog exceeds NT$10 billion, with revenue growth expected at 18%.

Wind power is a baseload renewable energy source with stable long-term demand. As an upstream material supplier, Sunwoda’s growth certainty is high, making it one of the most stable traditional renewable energy stocks.

5. Yuanjing (6443): Cost Leader in High-Efficiency Solar Modules

Yuanjing specializes in high-efficiency heterojunction (HJT) and TOPCon products. After anti-subsidy investigations in Europe and the US in 2025, Taiwanese manufacturers’ market share has increased. Yuanjing’s overseas orders are highly visible, with revenue expected to grow 12-15% annually. Its cost control is excellent, and dividend policy is stable—suitable for investors seeking steady returns. Under the long-term green energy trend, Yuanjing offers both defensive and growth potential.

Global Benchmarking: U.S. Green Energy Companies as References

Selected five U.S. stocks aligned with AI power demand, with high growth certainty, technological barriers, and business model advantages—ideal for international diversification alongside Taiwan’s energy stocks:

Constellation Energy (CEG)
Largest U.S. nuclear operator, with about 20% of U.S. nuclear capacity. Signed a 20-year restart agreement for Three Mile Island with Microsoft in 2025. Data center projects are expected to expand significantly. Stable cash flow, attractive dividends, EPS growth of 15-20% annually—combining defensive qualities with AI-driven baseload growth.

Oklo
Pioneer in micro nuclear reactors, supported by OpenAI CEO Sam Altman, focusing on deployment near data centers. NRC approval process is ahead, with potential clients like Amazon and Equinix already in talks. Its fast-fission technology offers low costs and rapid deployment, with explosive potential amid AI power shortages.

Eaton (ETN)
Leader in grid automation and power management, offering transformers, switchgear, and smart grid solutions. High-power-density AI data centers are boosting transformer demand (lead times extended to 24 months). Orders expected to surge in 2025, with grid business growth projected over 25% this year.

GE Vernova (GEV)
GE’s spinoff covering grid and power generation, including high-voltage transformers, HVDC, and wind equipment. Benefiting from global grid upgrade investments (annual spending of $68 billion), with AI clusters increasing transmission and distribution needs. Backlog hits record highs, with revenue growth forecast at 15-18%.

NextEra Energy (NEE)
Largest U.S. renewable energy company, leading in wind and solar capacity. Benefiting from offshore wind and solar expansion, as well as energy storage and data center green power supply. Stable dividends (annual payout growth of 10%+), EPS growth of 8-10% annually—core defensive green energy stock.

Investment Allocation in Taiwan’s Energy Stocks: Patience and Discipline

Risks in renewable energy include technological failures, supply chain bottlenecks, and regulatory changes, but long-term returns are promising. Suggested portfolio:

• 50-60% Taiwan energy stocks (AI-related power demand)—high growth, high volatility, aiming for alpha
• 30-40% Taiwan energy stocks (traditional green energy)—stability and defense, balancing overall volatility
• 10% cash or bonds—buffer for uncertainties

Trading Discipline:
Due to high volatility, avoid chasing highs. In a long-term upward trend, use short-term pullbacks as buying opportunities. Focus on monitoring AI capital expenditures (tech giants’ earnings reports), grid investment scales, order backlogs, and technological progress. Renewable investments are about order certainty and rigid demand, not hype.

The renewable cycle is long; bear markets often coincide with policy downturns, but each low signals a long-term bull start. In the context of AI and global net-zero transition, the period until 2030 is the most promising structural window for Taiwan’s energy stocks.