The U.S. Department of Energy (DoE) and Department of Commerce (DoC) have announced a partnership with SoftBank and AEP Ohio to redevelop federal land and expand energy and computing infrastructure in southern Ohio. Parts of the initiative were previously included in the U.S.-Japan Strategic Trade and Investment Agreement, which outlined US$ 33.3 billion in Japanese funding for the natural gas component.
According to a press release, all the agencies and companies are involved in a 10 GW data center complex project which includes US$ 4.2 billion in transmission upgrades in southern Ohio, funded by SB Energy in partnership with AEP Ohio. The upgrades are intended to expand grid capacity and integrate new generation without increasing customer rates in line with the administration’s “Ratepayer Protection Pledge.”
The project centers on the Portsmouth Site in Pike County, where SB Energy, a SoftBank subsidiary, plans to build 10 GW of new power generation. Most of that capacity 9.2 GW would come from natural gas. The electricity is intended to supply a planned 10 GW data center complex while also connecting to the local grid.
“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,” said Chris Wright, U.S. Secretary of Energy.
Masayoshi Son, SoftBank CEO, said that the development would support artificial intelligence infrastructure, adding, “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, AI will transform every industry, and the PORTS Technology Campus will help deliver the next-generation infrastructure needed to unlock those breakthroughs.”
Bill Fehrman, American Electric Power, President and CEO, said, “If it were not for the partnership between all parties – the Administration, SoftBank and our team – this type of investment would not be possible. This partnership unlocks billions of dollars of electric transmission infrastructure, all without increasing customer rates.”
This project complies with U.S. President Donald Trump’s Ratepayer Protection Pledge, which protects ratepayers from paying for energy infrastructure improvements needed to power the ongoing technological boom. Numerous representatives and political leaders have stated their support and optimism for this new partnership and project.
Howard Lutnic, Commerce Secretary, connected the deal to broader trade policy by saying “Our Japanese partnership is a direct result of President Trump’s America First trade policies, Japan has committed to invest US$ 550 billion across America. With this historic trade deal we are reindustrializing the country through critical projects like this US$ 33 billion dollar power project in Portsmouth, Ohio with additional mega projects in Alabama, Pennsylvania, Tennessee and Texas.”
Tim Walsh, Republican Party Member, said, “By capitalizing on investments in America and federal land assets, the partnership will safely advance restoration and revitalization of the Portsmouth site with enormous economic benefit to the region and the country.”
This project shall begin its development in late 2026 under the Department of Energy, and intends to support environmental clean up and redevelopment of the Portsmouth site, a former uranium enrichment facility, alongside job creation and regional economic development.