The U.S. Department of Energy announced on Mar. 20 a public-private partnership with the Department of Commerce, SoftBank, and AEP Ohio to redevelop federal land and modernize energy infrastructure in Southern Ohio. The initiative includes plans by SB Energy, a SoftBank Group company, to build 10 gigawatts of new power generation—primarily natural gas—to supply a new data center at the Portsmouth Site in Pike County without cost to American families.
This project is expected to lower electricity costs in the region, create thousands of jobs, and support national security efforts. The announcement builds on previous commitments under the U.S.-Japan Strategic Trade and Investment Agreement, which included $33.3 billion in Japanese funding for natural gas generation.
U.S. Energy Secretary Chris Wright said, “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.” Wright added that working with SoftBank and AEP Ohio will help bring new power online and upgrade existing infrastructure to support technological growth while keeping costs down.
Commerce Secretary Howard Lutnick said, “Our Japanese partnership is a direct result of President Trump’s America First trade policies,” noting Japan’s commitment to invest $550 billion across America through projects like this one in Portsmouth as well as others recently announced in Alabama, Pennsylvania, Tennessee, and Texas.
SB Energy will invest $4.2 billion with AEP Ohio for transmission upgrades at no cost to ratepayers. Bill Fehrman, Chairman and CEO of AEP Ohio 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.” Masayoshi Son, Chairman and CEO of SoftBank Group Corp., said their collaboration will help deliver next-generation infrastructure needed for AI advancements.
The project also aims to provide affordable energy through grid upgrades; foster job creation; enable scientific research including fusion and quantum computing; advance environmental cleanup at the Portsmouth site; and promote community development initiatives.
Assistant Secretary of Environmental Management Tim Walsh 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.” Construction is expected to begin this year.
In related efforts supporting energy affordability nationwide,the Department of Energy previously announced a $225 million program funded by President Biden’s Bipartisan Infrastructure Law for implementing updated building energy codes. Additionally,Secretary Jennifer Granholm has encouraged international cooperation on clean energy transitions through forums such as GCEAF.DOE officials have also highlighted technology development’s role in environmental management missions before Congress.Innovative processes are being used at other DOE sites for environmental remediation.DOE has also provided funding opportunities aimed at decarbonizing transportation.The department supports over 140 programs aligned with President Biden’s Justice40 Initiative targeting investments toward disadvantaged communities.
