Analysis:Resource-poor Japan was girding for an AI energy surge. DeepSeek raised the stakes

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Analysis:Resource-poor Japan was girding for an AI energy surge. DeepSeek raised the stakes - Channel News Asia

Quick Summary:

TOKYO : Weeks after Japan revealed details of a landmark energy plan partly designed to keep up with an expected AI surge, the shock rise of Chinese startup DeepSeek has upended conventional wisdom over the sector's future power demands.

This is a potential headache for Japan, which produces just 13 per cent of its energy needs from domestic sources, the second lowest ratio of all 38 OECD countries, besting only Luxembourg.

It was only last year that Tokyo abandoned its long-held forecasts that its future electricity needs would dwindle with its ageing population, and began accounting for higher AI-driven usage from data centres and microchip makers.