The White House meeting between President Donald Trump and Japanese Prime Minister Sanae Takaichi led to major power industry investments, part of a previously announced Strategic Trade and Investment Agreement.
The U.S. Department of Energy and U.S. Department of Commerce are implementing part of that agreement with a public-private partnership with SoftBank and AEP Ohio. The plan is to build 10 GW of new generation (including 9.2 GW of natural gas) to connect to the local grid in southern Ohio and to serve a 10 GW data center being built at the Portsmouth Site. The 9.2 GW gas plant is being funded by $33.3 billion in Japanese funding.
“Thanks to President Trump, the U.S. government is leveraging its assets — like our federal lands — to add power generation, create jobs, and ensure the United States wins the AI race,” Energy Secretary Chris Wright said in a statement March 20. “I’m pleased to be working with our partners at SoftBank and AEP Ohio on this important project. By bringing new power online and upgrading our existing infrastructure, this investment supports the AI boom and cutting-edge technologies while strengthening our energy system and helping keep costs down for the American people.”
Overall, Japan has committed to invest $550 billion in the United States. More of it is geared to meeting the growing demand for electricity, which is driven, in part, by the AI race.
“With this historic trade deal, we are reindustrializing the country through critical projects like this $33 billion power project in Portsmouth, Ohio,” Commerce Secretary Howard Lutnick said in a statement. The day before, the administration announced “mega projects in Alabama, Pennsylvania, Tennessee and Texas.”
SoftBank subsidiary SB Energy is investing $4.2 billion with AEP Ohio to build out the transmission grid to connect the massive new generator and data center to the grid. DOE said that investment comes at no cost to the public.
AEP Ohio said some of the transmission investment would be for 765-kV lines, which are rare in the United States, but growing more common. AEP has plenty of experience with the voltage, having operated lines since 1969. Lines at 765 kV can carry six times more energy than 345-kV transmission.
AEP Ohio and SB Energy will work with regulators and stakeholders to provide details on the projects and the proposed cost-recovery approach in upcoming regulatory filings.
“If it were not for the partnership between all parties — the Administration, SoftBank and our team — this type of investment would not be possible,” AEP CEO Bill Fehrman said in a statement. “This partnership unlocks billions of dollars of electric transmission infrastructure, all without increasing customer rates.”
Construction on the project is expected to start in 2026 and is expected to produce thousands of jobs and clean up the Portsmouth Site, which was used to produce uranium for nuclear weapons and reactors. Excess power from the 10 GW generator will be sold back onto the grid and reduce prices for consumers, DOE projected.
“Our partnership with the Department of Energy strengthens America’s AI leadership, secures the energy and compute needed for the future, and powers the next era of innovation for the United States,” SoftBank CEO Masayoshi Son said in a statement. “AI will transform every industry, and the PORTS Technology Campus will help deliver the next-generation infrastructure needed to unlock those breakthroughs.”
Other investments for the power sector from the Japanese trade deal include up to $40 billion for small modular reactors from GE Vernova Hitatchi in Tennessee and Alabama, up to $17 billion for natural gas generation in Pennsylvania, and $16 billion for natural gas generators in Texas, the Commerce Department said.
NextEra Energy reported it was going to develop and construct up to 10 GW of natural gas generation in Pennsylvania and Texas. It reported the investment is subject to negotiations, but the power plants would be owned jointly by Japan and the United States while operated by NextEra.
The firm is using its “hub strategy” for the 10 GW of new gas, which pairs investment in power plants with high demand sites such as data centers.
“Our hub strategy is designed to scale quickly and support rising demand while strengthening America’s energy security — without increasing electricity costs for American households,” NextEra CEO John Ketchum said in a statement. “We are pleased that our Texas and Pennsylvania hubs have been selected to advance the president’s goal of American energy dominance.”
