Nvidia-Backed Ubitus Builds Japan Data Center with Nuclear Power Consideration

Cloud service company Ubitus K.K., backed by NVIDIA (NVDA.US), plans to establish a new data center in Japan, with a specific emphasis on the new data center's proximity to nuclear power plants. In an interview, Ubitus CEO Wesley Kuo stated that the company is considering purchasing land in Kyoto, Shimane Prefecture, or Kyushu, as these areas are rich in nuclear energy resources. Kuo believes that, despite the controversy surrounding nuclear energy, it remains the most competitive energy option in terms of cost and scale of supply, especially for the artificial intelligence sector, which requires continuous and high-capacity power supply.

Ubitus already has two gaming data centers and plans to build a third one, dedicated to generative artificial intelligence services. Kuo points out that nuclear energy is more stable than renewable energy sources such as solar and wind power, which is crucial for industrial uses, particularly in the field of artificial intelligence. As the demand for zero-emission, stable electricity from artificial intelligence and data centers increases, Ubitus joins the ranks of tech companies like NVIDIA, which are actively exploring the use of nuclear energy.

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Despite the challenges to nuclear safety in Japan following the 2011 Fukushima nuclear accident, Ubitus plans to select the location for the new data center in the first quarter of next year and has visited multiple potential sites. Kuo stated that the region where the data center is established will be able to obtain cheap and stable electricity from nearby nuclear facilities. Unlike U.S. tech giants that directly purchase nuclear power or build nuclear power plants, Ubitus prefers to utilize existing nuclear energy resources.

It is understood that regions with nuclear power plants, such as the Kansai area in western Japan and Kyushu, typically have lower electricity prices, providing a cost advantage for data center operations. Ubitus's new data center is expected to have a power reception capacity of 2-3 megawatts and plans to expand to 50 megawatts. As the electricity consumption of artificial intelligence models continues to increase, nuclear energy is becoming more and more popular due to its ability to provide stable and large amounts of electricity on demand.

It is worth mentioning that recently, cooperation between utility companies and tech giants has become increasingly frequent, with a series of nuclear energy agreements signed, aiming to achieve clean energy goals while promoting the ambitions of artificial intelligence (AI) technology.

The energy consumption of artificial intelligence models is enormous, as they need to process massive amounts of data to generate responses. Because of this, nuclear energy has become a more favored energy option than wind or solar power, as it can provide stable and continuously available large amounts of electricity.

In this field, Amazon recently announced a $500 million investment in the nuclear energy industry, including an agreement with Dominion Resources (D.US) to explore the construction of a small modular nuclear reactor near the North Anna station.

Google is not lagging behind either, having reached a power purchase agreement with nuclear energy startup Kairos Power to buy electricity generated by multiple small modular reactors built by the company. Microsoft, on the other hand, has partnered with Constellation Energy (CEG.US) to restart a unit at the Three Mile Island nuclear power plant in Pennsylvania.