Cloud service company Ubitus K.K, backed by NVIDIA (NVDA, Financial), is planning to establish a new data center in Japan. The company is considering locations near nuclear power plants, with potential sites in Kyoto, Shimane Prefecture, or Kyushu, to capitalize on abundant nuclear energy resources.
Ubitus CEO Wesley Kuo emphasized the competitiveness of nuclear energy in terms of cost and supply scale, especially for high-capacity power needs in artificial intelligence (AI). The company, which already operates two gaming data centers, intends to build a third one focusing on generative AI services. Kuo highlighted the stability of nuclear energy compared to solar and wind, which is crucial for industrial AI applications.
As the demand for zero-emission and stable power in AI and data centers grows, Ubitus joins other tech companies like NVIDIA in exploring nuclear energy. Despite the challenges faced by nuclear energy safety in Japan post-2011 Fukushima incident, Ubitus plans to decide on the data center location by the first quarter of next year. The new site will leverage nearby nuclear facilities for cost-effective and stable electricity.
The Kansai and Kyushu regions in western Japan, known for their nuclear plants and lower electricity prices, offer operational cost advantages for data centers. Ubitus' new facility is expected to have a power capacity of 2-3 megawatts, with plans to expand to 50 megawatts. As AI models increasingly require large amounts of power, nuclear energy's ability to provide on-demand, stable power makes it an attractive option.
There has been a rise in collaborations between utility companies and tech giants, forming nuclear energy agreements to meet clean energy goals and support AI advancements. AI models need significant energy to process large data volumes, making nuclear energy preferable to wind or solar power due to its reliable supply.
In related developments, Amazon has announced a $500 million investment in the nuclear sector, including discussions with Dominion Energy (D) on a small modular reactor near the North Anna Power Station. Similarly, Google partnered with nuclear startup Kairos Power to purchase power from small modular reactors, while Microsoft collaborated with Constellation Energy (CEG) to restart a unit at Pennsylvania’s Three Mile Island Nuclear Generating Station.
