On January 21, Trump officially announced an AI infrastructure investment plan called "Stargate" in the White House. The plan aims to invest heavily in AI infrastructure through Stargate, a joint venture jointly established by OpenAI, SoftBank and Oracle. The estimated start-up capital is $100 billion, and the investment scale will increase to $500 billion within 4 years.
As early as the Biden era, the US government has invested heavily in the infrastructure of AI data centers. On January 7 this year, Trump publicly stated that his friend, UAE billionaire Hussein Sajwani, will invest $20 billion to build data centers in the United States, and will support the construction of large new data centers in the "Sunshine Belt" in the Midwest, South and Southwest of the United States.
On January 20, US President Trump announced the revocation of Biden's "Executive Order on the Safe, Reliable and Trustworthy Development and Use of Artificial Intelligence" (hereinafter referred to as the AI Executive Order). This executive order is the first regulatory law in the United States for generative AI and is regarded as a milestone AI policy. Trump's decision foreshadows the relaxation of US AI regulation.
After taking office, Trump has invested more actively in US AI construction, trying to build a leading position in US AI. Whether it is the implementation of the Stargate program, the relaxation of AI regulation, or the introduction of investment from "friends", the government-led data center construction in the Trump era will indeed usher in explosive growth.
Nuclear energy is the core demand for data center construction
The large-scale construction of data centers has brought about a surge in electricity demand, and the target of this ultra-high electricity demand environment is nuclear power.
Last year, Microsoft signed a 20-year power purchase agreement with CEG to restart the Three Mile Island Nuclear Power Plant. This once closed nuclear power plant will provide electricity exclusively for Microsoft's data centers.
In the same year, Google also announced a partnership with nuclear energy startup Kairos to purchase 6 to 7 small modular nuclear reactors with a total capacity of 500 megawatts to meet the energy needs of its data centers and AI businesses.
Oracle's chairman also revealed last year that he was designing a data center that requires more than 1,000 megawatts of electricity and plans to provide power through three small nuclear reactors.
Amazon also announced last year that it would invest in the development of small nuclear reactors and signed an agreement with Dominion Energy (D.US) to promote the implementation of this technology near the North Anna Nuclear Power Plant. In addition, it plans to build four X-energy reactors in Washington State to meet its energy needs in the late 2030s.
Recently, Trump's energy secretary candidate Chris Wright also plans to give priority to nuclear energy production in the United States.
VST.US
As the most powerful power stock last year, VST has a cumulative increase of 263% in 2024, surpassing Nvidia. The company currently has about 6.4GW of nuclear power installed capacity in the United States, and owns the Comanche Peak Nuclear Power Plant in Texas, the Beaver Valley Nuclear Power Plant in Pennsylvania, and the Perry and Davis-Besse Nuclear Power Plants in Ohio. Since the beginning of 2021, the company has spent a total of US$4.25 billion on repurchases, while the company's latest market value is only US$45.2 billion.
The announcement of Trump's Stargate initiative marks a significant shift in the U.S. approach to artificial intelligence and data center construction. By leveraging nuclear energy, this strategy not only addresses the escalating energy demands of modern data centers but also aligns with recent moves by tech giants. Microsoft's renovation of the Three Mile Island Nuclear Power Plant, combined with Google's partnership with Kairos, reinforces the importance of clean energy sources in powering the future of AI. The inclusion of friends and allies in investment decisions, like the $20 billion from UAE billionaire Hussein Sajwani, showcases an interconnected global approach to AI development. In the current landscape, the focus on nuclear energy reflects a broader trend toward sustainable and reliable energy solutions as the backbone for the next generation of technology infrastructure. With Trump signaling a relaxation of regulatory frameworks, the stage is set for explosive growth in AI through innovative partnerships and significant private investments. As the Biden administration previously invested in AI infrastructure, Trump's approach, particularly through initiatives like Stargate, represents a shift towards a more aggressive and pronounced governmental role in shaping the future of the industry. This could spark a new wave of technological innovations, positioning the United States at the forefront of the global AI race.
