Japan's SoftBank and AEP strike public-private deal for Ohio natural gas power

By Timothy Gardner

WASHINGTON, March 20 (Reuters) - The U.S. on Friday announced a partnership between Japan's SoftBank Group 9434.T and U.S. group AEP AEP.O to build a giant natural gas power campus on federal land in Ohio, part of a wider Washington-Tokyo trade deal.

As countries vie for leadership in the artificial intelligence boom, SB Energy plans to connect a 9.2-Gigawatt gas plant to the local grid and power a new data center at Portsmouth in Pike County, Ohio. One gigawatt is enough power for about 1 million U.S. homes.

During the Cold War, the U.S. produced enriched uranium for weapons at Portsmouth. The U.S. has spent billions of dollars decontaminating the site and its hundreds of buildings.

The public-private partnership includes $33.3 billion in funding from Japan, the Department of Energy said.

The investment is part of a U.S. trade deal with Japan struck in October that committed to invest $550 billion across the United States on nuclear power, rare earth minerals, and other projects as both countries looked to reduce China's dominance over electronic components.

"With this historic trade deal we are reindustrializing the country through critical projects like this $33-billion-dollar power project," said Secretary of Commerce Howard Lutnick.

Friday's announcement also said SB Energy is investing $4.2 billion with AEP Ohio to upgrade and build transmission lines in Southern Ohio.

Masayoshi Son, chairman and CEO of SoftBank Group Corp, said the deal strengthens U.S. artificial intelligence leadership and helps to secure capacity for energy and computing.

U.S. Energy Secretary Chris Wright said 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.”