Nvidia-backed gaming giant Ubitus seeks nuclear proximity for its new data center in Japan

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By Hazel Moises

Cloud gaming leader Ubitus K.K., backed by tech giant Nvidia, is on the hunt for a unique location for its new data center in Japan: one fueled by nuclear power. While the 2011 Fukushima disaster cast a long shadow over the country’s nuclear industry, Ubitus sees it as the key to powering its expansion into generative artificial intelligence (AI).

Bloomberg reported that according to Ubitus CEO Wesley Kuo, for industrial use, especially AI, they need a constant, high-capacity supply of clean energy and right now, nuclear offers the most competitive option in terms of cost and scale, especially compared to the inconsistency of renewables like solar and wind.

Ubitus joins a growing trend of tech companies looking to nuclear power as demand for AI and data centers soars. However, in Japan, securing nuclear energy remains a challenge. Strict regulations implemented after Fukushima have kept many reactors offline, despite the potential cost benefits for regions like Kyoto, Shimane, and Kyushu which house operational nuclear plants.

Undeterred, Ubitus is actively scouting locations in these areas. According to Kuo, they are aiming to finalize a site by next year’s first quarter. “Access to a stable, nuclear-powered grid is crucial for our AI ambitions,” said Kuo.

This approach differs from some US tech giants who are directly investing in nuclear plants. Ubitus seeks a region with existing nuclear infrastructure to benefit from lower electricity rates. This aligns with the company’s existing data center strategy, where locations near major gaming clients (Tokyo and Osaka) were prioritized.

Ubitus’ new data center will initially require 2-3 megawatts of power, with potential for expansion to 50 megawatts. The company’s pivot to AI necessitates a shift in focus from physical proximity to gamers to securing a robust and affordable energy source.

 

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