Commerce, Energy Departments Partner to Ensure Affordable Energy and Power America’s AI Future

Estimated reading time: 3 minutes

The U.S. Department of Commerce (DOC), alongside the U.S. Department of Energy (DOE), announced a unique public-private partnership with SoftBank and AEP Ohio to redevelop DOE land, modernize energy infrastructure, and develop advanced computing in Southern Ohio. As part of the partnership, SB Energy, a SoftBank Group company, is planning to build 10 gigawatts (GW) of new power generation—including 9.2 GW of natural gas generation—that will connect to the local grid and provide power to a new 10 GW data center development at the Portsmouth Site in Pike County, Ohio at no cost to American families. These collective efforts will deliver lower electricity costs across the region, create thousands of American jobs, and strengthen America’s national security.

Portions of this announcement were previously announced as part of President Trump’s U.S.-Japan Strategic Trade and Investment Agreement. This includes the $33.3 billion in Japanese funding for 9.2 GW of new natural gas generation.

“Our Japanese partnership is a direct result of President Trump's America First trade policies,” said U.S. Commerce Secretary Howard Lutnick. “Japan has committed to invest $550 billion across America. With this historic trade deal we are reindustrializing the country through critical projects like this $33 billion dollar power project in Portsmouth, Ohio. Yesterday we announced additional mega projects in Alabama, Pennsylvania, Tennessee and Texas.”

“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,” said U.S. Energy Secretary Chris Wright. “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.”

This project complies with President Trump’s Ratepayer Protection Pledge, which protects ratepayers from paying for energy infrastructure improvements needed to power the ongoing technological boom. In compliance with the pledge, SB Energy is investing $4.2 billion with AEP Ohio to upgrade and build new transmission lines in Southern Ohio. This critical grid investment, at no cost to the public, will help lower local utility rates for American families and businesses. SB Energy has committed to making excess transmission and generation capacity available to the grid.

“AEP Ohio is proud that this partnership will bring critical infrastructure to Appalachian Ohio,” said Bill Fehrman, AEP Chairman, President and Chief Executive Officer. “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.”

“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,” said Masayoshi Son, Chairman and CEO of SoftBank Group Corp. “AI will transform every industry, and the PORTS Technology Campus will help deliver the next-generation infrastructure needed to unlock those breakthroughs.”

The investment will support:

• Access to affordable energy through grid upgrades and the delivery of excess capacity onto the grid to help lower consumer electricity prices.
• Job creation and workforce development, delivering thousands of jobs and revitalizing the domestic manufacturing base that will support the project.
• Innovation and scientific discovery, developing a new large-scale data center that could have dedicated support of advanced research including around fusion, quantum computing, and national security.
• Environmental cleanup and remediation, advancing the revitalization of the Portsmouth site, that for decades played a pivotal role in our nation’s security.
• Community and economic development initiatives, ensuring residents of Southern Ohio and the broader region benefit directly from the investment.

“This partnership is a major step forward for Southern Ohio’s economic and energy future,” said Assistant Secretary of Environmental Management Tim Walsh. “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 on the project is expected to begin this year.