Artificial intelligence is driving massive economic growth in Taiwan, according to the Associated Press.
Its economy grew more in 2025 than in the previous 15 years, thanks to exports of artificial intelligence. The 8.6% expansion was spearheaded by Taiwanese tech giant TSMC, which sells chips to Nvidia.
AI is driving a huge part of the global economy, but it isn't without its costs. The huge energy demands of data centers have led to the use of dirty grid sources such as coal and gas. This has pinned a growing pollution footprint on AI use.
Beyond energy, data centers require significant water for cooling, which can deplete limited public supplies in remote areas and, in fact, increase the concentration of pollutants already in the aquifer.
There's also the e-waste generated at these data centers. Only about 22% of electronic waste is properly recycled, according to one study. Sending this waste to a landfill leads to highly toxic local pollution and misses an opportunity to reclaim valuable materials.
While commercial-scale e-waste is a big problem, it's possible to do your part by finding a second life for spare electronics around the home. Selling your old gadgets online can help prevent e-waste even better than material recycling.
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Major AI players like Google, Meta, and Microsoft have made big investments in nuclear power to curb the environmental impact of their electricity use. Improvements in the technology may increase efficiency and lower power consumption in the long run.
Despite its costs, AI has useful environmental applications. The technology is being used to support offshore wind farms, for example. AI is also proving useful in weather prediction. Others have found it able to speed up the design of batteries, which are vital for electrifying transportation and transitioning away from gas vehicles.
Some economists expect Taiwan's economy to cool down this year. Geopolitical risks with China and America loom large. There is concern that AI growth is beginning to plateau or that it's an investment bubble. Others remain optimistic.
"We expect AI-related demand to continue underpinning Taiwan's export performance into 2026, supporting overall economic growth amid sustained global AI investment," said economists Xiaoqing Pi and Helen Qiao, per AP.
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