U.S. Energy Department Partners with SoftBank, AEP on $33.3 Billion Ohio Power and Data Center Project

The U.S. Department of Energy and Department of Commerce on March 20 announced a public-private partnership with SoftBank and AEP Ohio to redevelop federal land, expand energy infrastructure, and support advanced computing development in southern Ohio. The initiative centers on the Portsmouth site in Pike County, where SB Energy, part of SoftBank Group, plans to develop up to 10 gigawatts of new power generation capacity to supply a large data center complex and provide additional electricity to the regional grid.

The project includes 9.2 gigawatts of natural gas-fired generation supported by $33.3 billion in Japanese investment under the U.S.-Japan Strategic Trade and Investment Agreement. The generation buildout is designed to support a planned 10-gigawatt data center campus and meet rising electricity demand from digital infrastructure and advanced computing applications. Construction is expected to begin this year.

AEP Ohio and SB Energy will also invest $4.2 billion in new and upgraded transmission infrastructure across southern Ohio. The companies indicate that these upgrades will be privately funded, with excess generation and transmission capacity made available to the grid. The structure aligns with federal efforts to shield ratepayers from bearing the cost of large-scale infrastructure tied to rising electricity demand from data centers and advanced industries. On March 4, President Trump issued a proclamation titled “Ratepayer Protection Pledge,” under which leading AI companies and hyperscalers committed to protecting consumers from price hikes due to data center energy and infrastructure requirements and lowering electricity costs in the long term.

Federal agencies highlight that the additional supply and grid enhancements could ease regional power prices by increasing available capacity and improving system reliability. The initiative also includes environmental remediation work at the Portsmouth site, which has historical significance tied to national defense activities, alongside broader economic development efforts in the region.

The project is expected to create thousands of jobs across construction, manufacturing, and operations, while supporting domestic supply chains linked to energy infrastructure.