Ubitus K.K., a Tokyo-based cloud services company backed by Nvidia (Nasdaq: NVDA), is planning to construct its third data center in Japan specifically designed for generative artificial intelligence operations, according to a report from Bloomberg. The company is actively searching for locations near nuclear power facilities, citing the need for stable and cost-effective energy supply.
CEO Wesley Kuo revealed in a Thursday interview that the company is evaluating potential sites in Kyoto, Shimane, and Kyushu, regions known for their nuclear power infrastructure. The project marks a strategic shift for Ubitus, which currently operates two gaming-focused data centers in Tokyo and Osaka.
“Nuclear is still the most competitive option in terms of cost and the scale of supply,” Kuo explained, dismissing renewable alternatives like solar and wind power as too inconsistent for AI applications that require constant, high-capacity power.
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This move aligns Ubitus with major tech companies including Amazon (Nasdaq: AMZN), Alphabet-owned Google (Nasdaq: GOOGL), and Microsoft (Nasdaq: MSFT), who have recently invested in nuclear power access to support their growing AI operations.
However, the company faces unique challenges in Japan, where nuclear power remains a sensitive issue following the 2011 Fukushima disaster. Despite having 33 commercially operable reactors, many remain inactive due to strict post-Fukushima regulations.
The proposed data center would initially operate with a power-receiving capacity of 2-3 megawatts, with potential expansion plans up to 50 megawatts. Ubitus aims to select a final location during the first quarter of next year, with Kuo having already conducted site visits in Kyoto and Shimane, and planning to explore options in Kyushu.
The selected regions offer strategic advantages: Kyoto’s proximity to Kansai Electric Power Co.’s nuclear facilities, Kyushu’s four operational units under Kyushu Electric Power Co., and Shimane’s upcoming reactor restart in December under Chugoku Electric Power Co. These areas typically benefit from lower electricity rates due to their nuclear power infrastructure.
Founded in Taiwan in 2007 and now headquartered in Tokyo, Ubitus partners with companies like Nintendo Co. and received funding from Nvidia earlier this year.
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
