DOE, SoftBank and AEP Ohio to Strengthen Grid Electricity with $33 Billion Power and AI Infrastructure Project in Southern Ohio

In a major push to strengthen energy infrastructure and accelerate AI-driven growth, the U.S. Department of Energy (DOE), in collaboration with the U.S. Department of Commerce (DOC), has announced a public-private partnership with SoftBank and AEP Ohio to redevelop federal land and build advanced energy and computing infrastructure in Southern Ohio.

The initiative will see SB Energy, a subsidiary of SoftBank Group, develop 10 gigawatts (GW) of new power generation capacity, including 9.2 GW of natural gas-based generation. The power will support a large-scale 10 GW data center project at the Portsmouth Site in Pike County, positioning the region as a critical hub for next-generation computing and AI infrastructure.

The project forms part of the broader U.S.-Japan Strategic Trade and Investment Agreement, under which Japan has committed significant investments in U.S. infrastructure, including $33.3 billion dedicated to natural gas power generation under this initiative.

According to U.S. Energy Secretary Chris Wright, the partnership leverages federal land assets to expand power generation, modernise infrastructure, and support emerging technologies, while maintaining cost stability for consumers.

U.S. Commerce Secretary Howard Lutnick highlighted that the collaboration reflects growing international investment driven by U.S. trade policies, contributing to the reindustrialisation of key regions across the country.

As part of the agreement, SB Energy will invest approximately $4.2 billion in collaboration with AEP Ohio to upgrade and expand transmission infrastructure in Southern Ohio. The upgrades are expected to enhance grid reliability, enable additional power capacity, and lower electricity costs for consumers without increasing rates.

Bill Fehrman, Chairman, President and CEO of AEP, noted that the partnership unlocks significant investment in transmission infrastructure, bringing economic development benefits to Appalachian Ohio without burdening ratepayers.

Masayoshi Son, Chairman and CEO of SoftBank Group, stated that the project will strengthen the United States’ leadership in artificial intelligence by ensuring access to both energy and advanced computing infrastructure, with the Portsmouth Technology Campus playing a key role in future innovation.

The investment is expected to deliver multiple benefits, including lower electricity costs through enhanced grid capacity, large-scale job creation, and workforce development. It will also support the establishment of a major data center ecosystem with potential applications in advanced research areas such as fusion energy, quantum computing, and national security.

Additionally, the project will contribute to environmental remediation efforts at the Portsmouth site, historically significant for national security operations, while promoting broader community and economic development across Southern Ohio.

Tim Walsh, Assistant Secretary of Environmental Management, emphasised that the partnership will drive both environmental restoration and economic revitalisation in the region.

Construction of the project is expected to commence later this year, marking a significant milestone in the integration of energy infrastructure with next-generation digital technologies in the United States.