Keppel partners with Mitsui Fudosan on data centre deal

Singapore’s Keppel has announced an agreement to acquire an AI-ready data centre being developed by Japan’s Mitsui Fudosan in Tokyo. The deal comes shortly after Keppel revealed plans to significantly increase its data centre funds under management, aiming to take advantage of the growing AI sector.

Mitsui Fudosan will handle the core and shell development of the facility, while Keppel’s private fund will oversee the fit-out works. The data centre is expected to be completed by 2027, with Keppel taking on the role of facility manager, which will contribute to its recurring income stream.

Keppel emphasised its ongoing partnership with Mitsui Fudosan to develop a strong pipeline of assets for its upcoming Keppel Data Centre Fund III. Financial details of the transaction have not been disclosed due to confidentiality agreements.

Google’s AI data centre in Saudi Arabia raises climate concerns

Google has announced plans to open a new AI-focused data centre in Saudi Arabia, aligning with Saudi Arabia’s Public Investment Fund to expand research in Arabic language AI models and ‘Saudi-specific AI applications.’ The project arrives as Google continues to face scrutiny over meeting its own climate goals, including its commitment to reduce carbon emissions by 2030.

The tech giant’s choice of location, a region highly dependent on fossil fuels, has raised eyebrows, given Google’s 2020 pledge to avoid developing AI algorithms for oil and gas. Aramco, Saudi Arabia’s state-owned petroleum company, currently uses AI to enhance production, with one oil field reportedly seeing a 15% boost through AI integration. While Google has stated the partnership ‘comports’ with its climate pledges, the data centre may contribute to advancing AI within the oil and gas sector.

The exact nature of ‘Saudi-specific AI applications’ remains unclear, though the centre could have implications for energy production as AI’s role in Saudi industry expands.

Wooden satellite LignoSat begins space mission

In a groundbreaking test for sustainable space exploration, Japan has launched the world’s first wooden satellite, LignoSat, aboard a SpaceX mission. Developed by Kyoto University and Sumitomo Forestry, LignoSat will orbit approximately 400 kilometers above Earth to test whether timber can endure the harsh conditions of space, marking an early step toward using wood in lunar and Mars habitats.

LignoSat, crafted from Japanese honoki wood, will remain in orbit for six months, with onboard sensors monitoring the wood’s resilience to extreme space temperatures and radiation. Researchers believe that, unlike metals, wood can burn up cleanly upon reentry, potentially reducing space debris and environmental impact compared to traditional satellites.

Kyoto University astronaut and project leader Takao Doi sees LignoSat as a first step toward a future where timber could be used to build sustainable housing on the moon and Mars. Doi’s team is exploring honoki wood’s effectiveness as a protective material in space, highlighting its role in possibly reinvigorating Japan’s timber industry while opening new paths for green technology in space missions.

NTT DATA partners with Google Cloud to boost AI and cloud solutions in the Asia Pacific region

NTT DATA and Google Cloud have partnered to accelerate the adoption of cloud-based data analytics and generative AI solutions across the Asia Pacific region. By combining NTT DATA’s industry expertise and client base with Google Cloud’s cutting-edge technologies, the partnership aims to drive innovation, improve operational efficiency, and enhance agility for enterprises.

Specifically, the collaboration focuses on co-developing industry-specific solutions for sectors such as healthcare, financial services, manufacturing, retail, and the public sector. A new NTT DATA Google Cloud Business Unit will also be created to focus on joint solutions in data analytics, GenAI, applications, infrastructure, cybersecurity, and SAP on the Google Cloud Platform (GCP).

The expansion also involves enhancing internal expertise, as NTT DATA plans to certify at least 1,000 more engineers in the APAC region and provide advanced training to its teams to ensure successful solution delivery. With global public cloud spending projected to grow significantly, the partnership aims to capture the increasing demand for cloud services and AI-driven solutions.

The goal is to grow NTT DATA’s cloud business in APAC by more than 10 times over the next three years. By combining NTT DATA’s digital transformation portfolio with Google Cloud’s advanced technologies, the collaboration is set to drive modernisation in AI, cloud infrastructure, and cybersecurity, offering businesses secure and efficient solutions to accelerate their digital transformation.

Constellation eyes new data center opportunities

Constellation Energy remains committed to establishing data centers at its US power plants despite a recent regulatory challenge. Last week, the Federal Energy Regulatory Commission (FERC) blocked a deal to expand power capacity for an Amazon data centre connected to a Talen Energy nuclear facility, a decision seen as discouraging similar co-location projects. Despite this, Constellation aims to advance its vision, particularly for AI-driven facilities seeking quick, large-scale power access.

Company CEO Joseph Dominguez expressed that Constellation will continue pursuing commercial co-location strategies permitted within existing regulations while seeking further guidance from FERC. Dominguez suggested future data centers could draw directly from nuclear power and, in times of grid emergencies, redirect electricity back to the network, highlighting potential safeguards for grid reliability and regional power stability.

FERC’s decision arose partly from concerns raised by other energy providers, who argued that the Talen-Amazon arrangement risked inflating energy prices for regular consumers and straining the grid. Specifically, Talen’s proposed data center campus could have supplied 960 megawatts—enough for a city the size of Philadelphia—but FERC limited it to 300 megawatts, citing grid impact concerns.

Constellation, largest nuclear operator in the US, had supported Talen in the regulatory process, underscoring the potential for data centers to meet surging digital demand. Although Constellation’s stock dropped following FERC’s ruling, the company is exploring alternative pathways with stakeholders to move its data center plans forward efficiently.

Tenstorrent partners with Japan to train chip designers

Tenstorrent, a Silicon Valley startup founded by veterans from Apple and Intel, has secured a deal with the Japanese government to train up to 200 Japanese chip designers over the next five years. This partnership, announced on Tuesday, includes a $50 million investment shared between Tenstorrent and Japan’s Leading-edge Semiconductor Technology Centre. It is part of Japan‘s initiative to revitalise its semiconductor industry, which has seen a significant decline since its dominance in the 1980s.

Central to this revitalisation effort is Rapidus, a government-backed contract chipmaker aiming to begin mass production of advanced semiconductors by 2027. To support Rapidus’s goals, the collaboration with Tenstorrent focuses on creating future customers by educating Japanese engineers in the US about chip design. Starting in April 2025, these engineers will work closely with Tenstorrent’s experienced team, including industry veterans who have worked on Apple chips.

The agreement allows Tenstorrent to retain the chip designs created during the training, which will utilise RISC-V, an open chip design architecture. Upon returning to Japan, the engineers will be equipped to leverage their new knowledge to develop their own RISC-V designs, further contributing to the growth of Japan’s semiconductor capabilities. Tenstorrent’s Chief Customer Officer, David Bennett, emphasised that Japan’s proactive investments reflect its commitment to taking control of its technological future.

SpaceX asks Taiwanese partners to relocate amid rising tensions

SpaceX, the aerospace company founded by Elon Musk, is urging its Taiwanese suppliers to relocate manufacturing operations off the island due to rising geopolitical tensions between China and Taiwan. This shift, aimed at reducing risk amid China’s increased military drills around Taiwan, has led some suppliers to transfer parts of their production to countries such as Vietnam and Thailand. Notable Taiwanese companies, including Chin-Poon Industrial and Wistron NeWeb Corporation (WNC), confirmed that SpaceX requested they move production, citing geopolitical concerns.

In response, WNC has already started producing network equipment for SpaceX’s Starlink project in Vietnam, with plans to double its workforce there. Similarly, Universal Microwave Technology has expanded in Southeast Asia, investing in new factories in Vietnam and Thailand, while Shenmao Technology is establishing a $5 million unit in Vietnam. These shifts align with Taiwanese tech companies’ broader efforts to diversify their operations outside Taiwan, aiming to insulate their supply chains from potential disruptions.

SpaceX’s approach underscores Musk’s complicated relationship with Taiwan, heightened after his comments last year calling Taiwan an “integral part” of China, which sparked backlash from the Taiwanese government. The company’s interest in building a manufacturing hub in Vietnam reflects an increasing trend of high-tech industries seeking stability amid geopolitical tensions, with Southeast Asia emerging as a crucial alternative for production.

MIT introduces new data-rich approach for training robots

MIT has unveiled a new method for training robots that scales up data in a way similar to large language models (LLMs), marking a shift from the narrow, task-focused data sets traditionally used in robotics. Imitation learning, where robots learn by observing humans, often struggles with new variables like lighting changes or unexpected obstacles. By adopting a vast data approach similar to that used in models like GPT-4, MIT’s researchers aim to help robots adapt more flexibly in varied environments.

The team developed a new architecture called Heterogeneous Pretrained Transformers (HPT), which combines information from multiple sensors and diverse settings to build robust training models. Larger transformers yielded improved outcomes, aligning with trends seen in LLMs, as HPT integrates data from multiple sources for more adaptable robotic responses.

Ultimately, researchers aspire to create a universal ‘robot brain’ that can be downloaded and used immediately without extra training. While still in early stages, the project has support from Toyota Research Institute, which recently partnered with Boston Dynamics to integrate learning research with advanced robotic hardware.

Strategic prudence in AI: Experts advise incremental approach for meaningful advancements

At TechCrunch Disrupt 2024, data management leaders advised AI-driven businesses to focus on incremental, practical applications rather than expansive, large-scale projects. Chet Kapoor, CEO of DataStax, stressed that AI’s effectiveness relies heavily on having robust, unstructured data at scale, but warned companies against rushing into overly ambitious initiatives. The discussion featured insights from Kapoor, Vanessa Larco of NEA, and Fivetran’s CEO George Fraser, all of whom advocated a targeted approach to data application in generative AI.

Rather than applying AI across all company functions immediately, Larco suggested that firms begin with well-defined objectives. Identifying relevant data is key, she said, and applying it selectively can avoid the pitfalls of costly errors. Companies looking to capitalise on AI should ‘work backwards’, focusing first on the issue to be solved and gathering the specific data required, Larco added.

Fraser underscored the importance of addressing current needs before planning for broader scaling. Many innovation costs, he pointed out, stem from projects that fail rather than those that succeed. His advice: ‘Only solve the problems you have today’.

Kapoor likened today’s generative AI era to the early days of mobile apps, emphasising that most AI projects are currently in exploratory stages. He believes next year will see transformational AI applications begin to shift company trajectories.

Data center growth at power plants faces regulatory hurdles

The Federal Energy Regulatory Commission (FERC) is examining the rapid growth of energy-intensive data centers being built next to US power plants. Known as co-location, this trend is driven by the tech sector’s need for large amounts of power for AI and other data-heavy operations. Co-locating data centers near power plants offers companies quicker access to electricity, bypassing the longer process of connecting to the broader grid.

However, regulators and industry experts are concerned about the impact on costs and reliability for other electricity consumers. If data centers use power plants that typically supply the public grid, there are questions about how such facilities will handle power disruptions and whether they will lean on the grid as backup. This could mean higher electricity bills for consumers who fund grid infrastructure, a point raised by FERC Commissioner Mark Christie.

The regulatory scrutiny comes as companies like Amazon and Google look to establish co-located data centers to meet growing energy needs. A recent arrangement in Pennsylvania, where Amazon bought a data center linked to a nuclear plant, has stirred debate among electric utilities over infrastructure costs and reliability. FERC’s review could lead to new guidelines clarifying financial responsibilities and operational rules for these partnerships.