Japan’s SoftBank Group has partnered with U.S. utility American Electric Power (AEP) to develop a large-scale artificial intelligence data centre campus in Ohio, backed by significant energy infrastructure and international investment. The project, announced on March , 2026, is part of a broader effort to strengthen the United States’ position in the global AI race.
The initiative will involve the construction of a 10-gigawatt AI data centre alongside a 9.2-gigawatt natural gas-fired power plant, making it one of the largest such developments globally. The facility will be built on federally owned land at the Portsmouth site in Pike County, Ohio, a location previously used for uranium enrichment during the Cold War and later decontaminated.
The project is supported by $33.3 billion in Japanese funding as part of a larger U.S.-Japan strategic trade agreement, which includes commitments to invest $550 billion across sectors such as energy, rare earths, and advanced technologies. The collaboration is aimed at boosting AI infrastructure while reducing reliance on China for critical electronic components.
As part of the development, SB Energy, a SoftBank subsidiary, will play a key role in building and connecting the gas-powered generation capacity to the grid. Additionally, the company is investing $4.2 billion with AEP Ohio to upgrade and expand transmission infrastructure in southern Ohio, ensuring reliable energy supply for the data centre operations.
The scale of the project reflects the rapidly rising energy demands of artificial intelligence systems. A single gigawatt of power can supply nearly 1 million homes, highlighting the immense electricity requirements of hyperscale data centres that support AI workloads. The Ohio campus is expected to significantly expand computing capacity while creating jobs and strengthening regional infrastructure.
Officials have described the project as a step toward reindustrializing the U.S. economy and ensuring leadership in next-generation technologies. By leveraging federal land and international investment, the initiative aims to accelerate the development of advanced computing ecosystems critical to AI innovation.
However, the reliance on natural gas has drawn criticism from environmental groups, who warn that the project could lead to long-term emissions and environmental impact. The debate highlights the growing tension between the need for massive energy capacity to power AI and the push for sustainable energy solutions.
The SoftBank-AEP partnership underscores a broader global trend where energy infrastructure and artificial intelligence development are becoming deeply interconnected. As countries compete to build large-scale AI capabilities, access to reliable and scalable power is emerging as a critical factor shaping the future of the industry.
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