Nvidia Explores Former Nuclear Sites for AI Data Centers

This article first appeared on GuruFocus.

AI chipmaker Nvidia Corp. (NVDA, Financials) has entered into a partnership with German energy business PreussenElektra to investigate the potential of converting decommissioned nuclear power plants into high-performance data centers.E.ON’s PreussenElektra is responsible for shutting down eight nuclear facilities in Germany.As those sites are being torn down, the corporation is looking at long-term new uses for the land and infrastructure.The evaluation with Nvidia will focus on current energy links, available space and whether the sites can match the technical and operational requirements of AI data centers.The corporations claimed the procedure is still in the experimental phase.No exact site, investment amount, or development plan authorized.The concept is important to investors since power supply is shaping up to be one of the main limitations for AI infrastructure expansion.Repurposing former nuclear plants may be advantageous if they can take advantage of existing grid connections and industrial infrastructure.That can cut development time versus creating whole new sites from scratch.Next we will monitor to see if the study throws up potential sites and whether E.ON progresses from feasibility studies to official AI data center proposals.