Nvidia-Supported Company Seeks Land Near Nuclear Power in Japan

Ubitus K.K. Eyes Nuclear Power

Ubitus K.K., a Tokyo-based tech company backed by Nvidia, is reportedly looking to acquire land in Kyoto, Shimane, or a prefecture in Japan’s southern island of Kyushu. The primary reason for this interest is the availability of nuclear power in these regions, as per a Bloomberg report.

Plans for a Third Data Center

Wesley Kuo, the Chief Executive Officer of Ubitus K.K., revealed the company's plans during an interview last Thursday. The company, which already operates two data centers for gaming purposes, is planning to establish a third one dedicated to AI. Kuo stated that nuclear power remains the most competitive option in terms of cost and scale of supply, especially for industrial use and AI, which require a constant, high-capacity supply.

Nuclear Power in Japan

In Japan, nuclear power is a contentious issue due to the 2011 Fukushima disaster and the stringent regulations implemented in its aftermath. Currently, only 33 reactors are available, many of which are still inactive.

Revival of Nuclear Power

The revival of nuclear power has been gaining momentum recently. This was evident with the news of the restart of the Three Mile Island nuclear plant near Harrisburg, Pennsylvania, and the Biden administration's provision of a $1.5 billion loan to revive Holtec's Palisades nuclear plant in Michigan. Moreover, tech giants like Amazon, Microsoft, and Google have shown interest in nuclear power, with a dormant nuclear plant in Iowa also potentially restarting.

NextEra Energy's Plans

During a recent earnings call, NextEra Energy CEO John Ketchum informed investors that the company might restart the Duane Arnold Energy Center (DAEC), Iowa's only nuclear power plant. He mentioned that while nuclear will play a role, there are some practical limitations. However, the company is currently evaluating the recommissioning of the Duane Arnold nuclear plant as a potential solution.

Big Tech's Interest in Nuclear Power

The interest of big tech companies in nuclear power and their efforts to revive the industry provide a significant boost to the "Next AI Trade." This strategy was identified in April as a long-term favorite trade, highlighting various investment opportunities for powering up America.

Recent Developments in the Atomic Revival

Several recent developments have marked the revival of the atomic industry. These include NextEra's evaluation of restarting Iowa's only nuclear plant, the planned restart of Three Mile Island to power Microsoft data centers, and Google's decision to use nuclear power for its data centers.

Looking Back

In December 2020, the nuclear theme was first introduced to readers with the headline: "Buy Uranium: Is This The Beginning Of The Next ESG Craze."

Bottom Line

The recent interest of tech companies in nuclear power signals a potential revival of the industry. However, the practical limitations and controversies surrounding nuclear power cannot be ignored. What are your thoughts on this development? Do you think nuclear power is the future of the tech industry? Share this article with your friends and discuss. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.