Alibaba’s Nuclear Power Venture Fails to Energize Investors
Alibaba Group Holding Ltd. shares dipped slightly after announcing a $36 million joint venture with China National Nuclear Power Co., underscoring investor skepticism about the tech giant's energy strategy for its AI-driven data centers.
The partnership aims to secure low-carbon electricity for Alibaba's expanding infrastructure, but the modest capital commitment—against its $53 billion AI investment—left markets questioning execution risks. Nuclear alliances have become a hallmark for tech firms like Microsoft and Meta, yet Alibaba's move triggered short-term hesitation.
Analysts note the venture aligns with China's carbon neutrality goals but lacks clarity on scalability. With data center reliability at stake, the market awaits details on whether this signals a deeper push into modular reactors or merely offsets existing grid dependencies.
