Energy Department announces partnership for new power generation and data center in Ohio

Chris Wright, U.S. Secretary of Energy
Chris Wright, U.S. Secretary of Energy
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The U.S. Department of Energy announced on Mar. 20 a public-private partnership with the Department of Commerce, SoftBank, and AEP Ohio to redevelop federal land, modernize energy infrastructure, and develop advanced computing 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 new data center at the Portsmouth Site in Pike County without cost to American families.

This project is expected to lower electricity costs in the region, create thousands of jobs, and strengthen national security. It also aims to provide affordable energy through grid upgrades and deliver excess capacity onto the grid for consumers. According to U.S. Energy Secretary Chris Wright, “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 said that working with partners like SoftBank and AEP Ohio will help bring new power online while supporting technological growth.

U.S. Commerce Secretary Howard Lutnick said, “Our Japanese partnership is a direct result of President Trump’s America First trade policies.” Lutnick noted Japan’s commitment to invest $550 billion across America as part of this agreement and highlighted additional projects announced in other states.

SB Energy will invest $4.2 billion with AEP Ohio for transmission line upgrades in Southern Ohio at no cost to ratepayers. Bill Fehrman, Chairman and CEO of AEP, said: “If it were not for the partnership between all parties – the Administration, SoftBank and our team – this type of investment would not be possible.” Masayoshi Son, Chairman and CEO of SoftBank Group Corp., added: “AI will transform every industry, and the PORTS Technology Campus will help deliver the next-generation infrastructure needed to unlock those breakthroughs.”

The project supports job creation and workforce development while revitalizing domestic manufacturing. It also advances environmental cleanup at the Portsmouth site—a location important for national security—and promotes community development initiatives benefiting Southern Ohio residents.

Assistant Secretary of Environmental Management Tim Walsh said: “By capitalizing on investments in America and federal land assets, the partnership will safely advance restoration and revitalization of the Portsmouth site with enormous economic benefit to the region and the country.” Construction is expected to begin this year.

In related efforts by DOE under previous administrations: On July 21, 2022,the department announced a $225 million program funded by President Biden’s Bipartisan Infrastructure Law for implementing resilient building energy codes; Secretary Jennifer Granholm encouraged international cooperation on clean energy transitions; DOE officials highlighted technology development’s role in environmental management before Congress; innovative passive energy processes have been used at Savannah River Site for groundwater remediation; $96 million was allocated for clean vehicle technologies; and 146 programs were launched supporting President Biden’s Justice40 Initiative targeting investments toward disadvantaged communities.



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