Sumitomo Corp. and SBI Holdings are betting big on artificial intelligence, each taking a 20% stake in FPT Smart Cloud Japan. The investment, expected to close by May 2025, gives a boost to FPT Group's efforts to expand its AI infrastructure using Nvidia's (NVDA, Financials) technology.

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FPT Smart Cloud Japan, launched in late 2024 by Vietnam's FPT Group, is building data centers designed to power AI across fast-moving industries like healthcare, education and manufacturing. As AI tools become essential for businesses, the need for reliable, energy-hungry data centers is growing just as quickly.

But building AI infrastructure is only half the battle. Keeping it running takes serious power. Nvidia Chief Executive Officer Jensen Huang recently met with Japanese Prime Minister Shigeru Ishiba, pushing for more electricity generation to fuel AI's future. Huang praised Japan's leadership in robotics and manufacturing, but made it clear: without enough energy, that leadership could stall.

Japan is already exploring options from restarting nuclear reactors to importing more fossil fuels and even investing in a $44 billion liquefied natural gas project in Alaska.

For FPT Smart Cloud Japan, the new backing from Sumitomo and SBI isn't just about money. It's part of a much bigger race to build the digital backbone needed for the AI-driven economy that's rapidly taking shape.

This article first appeared on GuruFocus.

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