AI and Chip Manufacturing Drive Japan's Nuclear Energy Expansion
Tyler Durden

The world continues to "warm" back up to nuclear, with the latest example coming out of Japan, where its Shimane nuclear power station in western Japan has been restarted for the first time since the 2011 Fukushima meltdown.

Japan's long-delayed restart of the 820 MW No. 2 reactor at the Shimane plant, shut down since January 2012, raises the number of operational reactors to 14, with a total capacity of 13,253 MW, according to Reuters.

Tohoku Electric Power also recently resumed operations of its 825 MW No. 2 reactor at the Onagawa plant, reducing Japan's reliance on liquefied natural gas and thermal coal.

Reuters writes that the expanded use of nuclear energy is expected to support Japan's growing power needs, particularly for semiconductor plants and AI-driven data centers.

The government projects power demand will rise from 1 trillion kWh this decade to 1.35–1.5 trillion kWh by 2050, fueled by the expansion of energy-intensive industries like chip manufacturing.

For Chugoku Electric, restarting the Shimane reactor, after investing 900 billion yen ($6 billion) in post-Fukushima safety upgrades, is set to improve profitability. The utility expects a recurring profit increase of 11 billion yen for the fiscal year ending March, driven by reduced fossil fuel costs, the report says. 

About a week ago, Meta became the latest tech giant to embrace nuclear power with open arms. 

We noted that the tech giant had issued a sweeping "request for proposals" (RFP) aimed at identifying developers capable of bringing nuclear reactors online by the early 2030s to support its energy-intensive data centers and surrounding communities.

Axios wrote that Meta's RFP targets an ambitious pipeline of new generation capacity ranging from one to four gigawatts. The company seeks partnerships with entities that can streamline the entire lifecycle of nuclear projects—from site selection and permitting to design, construction, and operation.

And just days ago we published a note from OilPrice.com asking whether or not the world has finally overcome the Chernobyl Disaster. It noted what we have been predicting for years: despite past challenges, there is a growing global interest in nuclear power as a key component of a sustainable energy future.

And as we have continued to report, accelerating power demand growth from AI data centers has sparked a nuclear power revival in the US:

• Amazon To Invest More Than $500 Million In Small Modular Nuclear Reactors To Power AWS
• Nuclear Names Surge After Three Mile Island Planned Restart To Power Microsoft Data Centers
• Nuclear Is Back: US Closes On $1.5 Billion Loan To Resurrect Holtec's Palisades Nuclear Plant
• Sam Altman-Backed Nuclear Startup Oklo Signs Agreement With Dept. Of Energy For Next Phase Of Siting In Idaho

For those who missed it, in our note "The Next AI Trade" from April of this year, we outlined various investment opportunities for powering up America, most of which have dramatically outperformed the market.

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