Energy Department announces partnership for major energy and data center project in Ohio

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Chris Wright, Secretary, U.S. Department of Energy | U.S. Department of Energy

Energy Department announces partnership for major energy and data center project in Ohio

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The U.S. Department of Energy announced on Mar. 20 a new public-private partnership with the Department of Commerce, SoftBank, and AEP Ohio to redevelop federal land and modernize energy infrastructure in Southern Ohio. The initiative includes plans by SB Energy, a SoftBank Group company, to build 10 gigawatts of new power generation—primarily natural gas—to support a large-scale data center at the Portsmouth Site in Pike County.

The project aims to deliver lower electricity costs across the region, create thousands of jobs, and strengthen national security by supporting advanced computing needs. According to the announcement, these efforts will not increase costs for American families.

U.S. Energy Secretary Chris Wright said, “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.” Wright added that working with partners like SoftBank and AEP Ohio would help bring new power online and upgrade existing infrastructure to support technological growth while keeping costs down.

Commerce Secretary Howard Lutnick said, “Our Japanese partnership is a direct result of President Trump's America First trade policies. 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.”

AEP Chairman Bill Fehrman said that without collaboration between all parties involved—including the Administration and SoftBank—the investment would not be possible: “This partnership unlocks billions of dollars of electric transmission infrastructure, all without increasing customer rates.” Masayoshi Son, Chairman and CEO of SoftBank Group Corp., said their work with DOE would "strengthen America’s AI leadership" and provide "the next-generation infrastructure needed to unlock those breakthroughs." Assistant Secretary Tim Walsh called it "a major step forward for Southern Ohio’s economic and energy future," emphasizing benefits for both restoration efforts at Portsmouth and regional economic growth.

The DOE has previously launched programs aimed at lowering utility bills through updated building codes according to an announcement from July 2022. The department also encouraged international cooperation on clean energy transitions as seen in a video released in July 2022. Technology development remains central to environmental management missions according to testimony before Congress, while innovative processes have been used for groundwater cleanup at other DOE sites as reported by DOE Office of Environmental Management.

In addition, DOE has supported decarbonization efforts through funding opportunities such as a $96 million program announced in July 2022 targeting clean vehicle technologies according to DOE. The department also supports more than 140 programs under President Biden’s Justice40 Initiative aimed at delivering clean energy investments to disadvantaged communities according to an announcement from July 2022.

Construction on the Southern Ohio project is expected to begin this year.

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