On December 12, 2025, Taiwan took a bold leap into the future with the launch of its first national cloud computing center in Tainan, a move that underscores the island’s determination to carve out a place in the fiercely competitive global race for artificial intelligence (AI) supremacy. The ceremony, attended by President William Lai, marked not just the unveiling of a new facility, but also the official start of Taiwan’s ambitious "10 Major AI Infrastructure Projects"—an initiative set to shape the country’s technological landscape for decades to come.
According to reporting from the Taipei Times, President Lai didn’t mince words about the stakes. "Taiwan is making a crucial step in transforming from a hardware manufacturing powerhouse to becoming an 'AI island,'" Lai declared at the launch event. It was a statement packed with both pride and urgency, reflecting the island’s pivot from its traditional strength in hardware to a new era of AI-driven innovation and economic resilience.
The new national cloud computing center is just one of four major AI projects currently underway. The others, as Lai outlined, include the creation of a dedicated AI data center, the cultivation of homegrown AI talent, and the development of resilient electricity networks to power the country’s digital future. Together, these efforts are meant to bolster Taiwan’s technological independence and industrial competitiveness—no small feat in an era when global supply chains and digital infrastructure are under constant threat from both market forces and geopolitical tensions.
But what does "AI sovereignty" really mean? As explained by Taiwan’s National Science and Technology Council (NSTC), it’s about having the ability to develop, host, deploy, and govern AI systems domestically, ensuring they’re tailored for local needs and not beholden to foreign tech giants or cloud jurisdictions. In practical terms, this means building the infrastructure and expertise to create cutting-edge AI solutions—on Taiwanese soil, for Taiwanese citizens.
By 2028, the Tainan center is expected to boast a computational power of 15 megawatts, powered in part by AI supercomputers equipped with Nvidia’s latest chips. And the momentum isn’t stopping there. By 2029, Taiwan plans to ramp up its combined computational muscle to 23 megawatts, thanks to the addition of a new 9.6 megawatt AI data center in the Shalun district of Tainan. This will be, according to the NSTC, the largest data center in the nation, positioning Taiwan as a regional heavyweight in digital infrastructure.
The potential applications of these centers are as varied as they are vital. The NSTC has highlighted support for generative AI training models, climate simulation, and semiconductor research and development—fields that not only promise economic growth but also have strategic implications for national security and global competitiveness. What’s more, these centers will be open to the private sector, giving Taiwanese companies the tools they need to innovate and compete on a global stage.
International collaboration is also key to Taiwan’s strategy. The NSTC recently announced a partnership with Japan’s NTT Inc to adopt state-of-the-art all-optical transmission technology—known as the Innovative Optical and Wireless Network—through Chunghwa Telecom and the national cloud computing center. This technology promises to supercharge Taiwan’s capabilities in packaging technology, co-packaged optics, and silicon photonics, with networking device supplier Edgecore Networks Corp also joining the effort.
Against this backdrop of rapid technological advancement, the global context looms large. In a recent episode of Defense One Radio, Paul Scharre, executive vice president at the Center for a New American Security, painted a vivid picture of the international AI arms race. Scharre, a former Army Ranger and renowned expert on autonomous weapons, discussed how AI is reshaping drone warfare and transforming the global balance of power—especially between the United States, China, and Russia.
"AI might reshape drone warfare," Scharre explained, emphasizing that the technology is not just about faster computers or smarter algorithms, but about fundamentally changing the way conflicts are fought and won. According to Defense One, Scharre’s insights highlighted the urgency for countries like the United States to stay ahead in the technological race, particularly as China ramps up its investments in AI and Russia deploys advanced systems in its ongoing war in Ukraine.
The intersection of national security and technological innovation is particularly acute in East Asia, where Taiwan finds itself in a delicate geopolitical position. At the annual Reagan National Defense Forum in Simi Valley, California, U.S. Secretary of Defense Pete Hegseth addressed the evolving priorities of the Pentagon: "First, defending the US homeland and our hemisphere. Second, deterring China through strength, not confrontation. Third, increased burden sharing for us, allies and partners. And fourth, supercharging the US defense industrial base." Hegseth’s remarks, reported in the Taipei Times, made it clear that the U.S. sees technological strength—not just military might—as central to maintaining stability in the Taiwan Strait.
It’s not just about deterrence, though. The American approach, as Hegseth put it, is to ensure that "none of Washington’s allies would be vulnerable to military aggression," a sentiment that resonates deeply in Taipei as tensions with Beijing simmer. The specter of conflict—and the role of advanced technologies like AI in shaping its outcome—is never far from the minds of policymakers on both sides of the Pacific.
Adding to the sense of urgency, the Taipei Times also reported on the development of the Chien Feng IV loitering munition, a so-called "kamikaze drone" with a range of 1,000 kilometers. Jointly developed by Taiwan’s Chungshan Institute of Science and Technology and U.S.-based Kratos Defense, the drone leverages artificial intelligence to enhance its capabilities. Flight tests are set to begin next month, with potential adoption by both Taiwanese and U.S. armed forces. This project is a clear example of how AI is being woven directly into the fabric of modern defense systems.
Yet, for all the headlines about drones and supercomputers, the heart of Taiwan’s strategy lies in building resilience—both digital and economic. By investing in sovereign AI infrastructure and forging international partnerships, Taiwan is betting that it can not only weather the storms of geopolitical rivalry but thrive in the new era of intelligent technology. The world will be watching closely to see how this gamble pays off.
With its first national cloud computing center now live and a roadmap for AI development stretching decades into the future, Taiwan has signaled its intent to be more than just a player in the global tech race—it aims to set the pace.
