Nvidia and Super Micro expand operations in Taiwan with green energy-focused AI data center projects.

Artificial intelligence server company Super Micro Computer Inc (NASDAQ:SMCI) and Taiwan's Guo Rui announced plans to establish a renewable-energy-powered computation center in Taiwan. Following discussions with Supermicro founder Charles Liang and Guo Rui chairman Lin Po-wen, Premier Cho Jung-tai instructed the formation of a cross-ministerial task force to promote renewable energy and facilitate land acquisition for green power projects, according to Executive Yuan spokesperson Michelle Lee.

In a separate announcement, Nvidia Corp (NASDAQ:NVDA) revealed plans to establish a secondary headquarters in Taiwan, matching the scale of its Silicon Valley operations. National Development Council Minister Paul Liu highlighted Taiwan's robust talent pool, infrastructure, and proximity to supply chains as key factors that could contribute toward the country becoming a global hub for AI development. Taipei Mayor Chiang Wan-an and New Taipei City Mayor Hou You-yi expressed their commitment to attracting Nvidia's new headquarters to the region.

New Taipei City offered a portfolio of potential sites and incentives to secure the investment, recognizing that Supermicro is a key Nvidia client. The chipmaker's expansion has prompted the city government to set up water recycling plants and ultra-high-voltage substation facilities to ensure a stable water and power supply. Additionally, Taiwan Semiconductor Manufacturing Co (NYSE:TSM) is considering five factories in the heavy industrial city of Kaohsiung, with the first plant likely to start commercializing by 2025 or a year thereafter.

In December, Taiwan Semiconductor showcased its advanced chip fabrication plant debut in Arizona, marking U.S. attempts to reduce dependence on China as a semiconductor supply chain. The company targets two additional fabs in Arizona, bringing its total investment to $65 billion. At last check on Friday, SMCI stock was down 5.00% to $32.06, while NVDA declined 2.62%.