Alibaba Group Holding Ltd. (NYSE:BABA), following Big Tech peers in the U.S., has struck a nuclear power partnership in China, underscoring how artificial intelligence is reshaping global energy strategies.

The Chinese e-commerce giant is moving to secure the massive electricity demand required for AI data centers by forming an electricity generation venture with a leading Chinese nuclear power group. This week, Alibaba established a 250 million yuan ($35.9 million) joint venture with China National Nuclear Power Co. and several other partners, Bloomberg reported on Wednesday, citing Tianyancha database filings.

The move mirrors a broader trend among global technology leaders. U.S. giants such as Meta Platforms Inc. (NASDAQ:META) and Microsoft Corp. (NASDAQ:MSFT) have also forged nuclear power agreements to ensure access to clean, round-the-clock electricity for energy-intensive data centers.

Big Tech is increasingly turning to nuclear power as grid limitations slow data center expansion, particularly in the U.S. An Alphabet Inc. (NASDAQ:GOOGL) Google executive said long grid interconnection delays, sometimes stretching beyond a decade, are pushing the company to place data centers directly next to power plants as a workaround.

The surge in AI-driven data center demand has drawn attention from investors and policymakers alike. Michael Burry recently urged President Donald Trump and Vice President JD Vance to accelerate a $1 trillion investment in nuclear energy and grid upgrades. Tesla Inc. (NASDAQ:TSLA) chief Elon Musk has also advocated for the shift, arguing that solar power will eventually dominate global energy generation.