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 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 supply 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 support national security efforts. It also aims to strengthen America’s position in advanced computing and artificial intelligence technologies.

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 will help bring new power online while supporting technological growth and keeping costs down for Americans.

Commerce Secretary Howard Lutnick said, “Our Japanese partnership is a direct result of President Trump’s America First trade policies,” noting Japan’s commitment to invest $550 billion across America as part of broader reindustrialization efforts. Bill Fehrman, Chairman and CEO of AEP Ohio, said the collaboration would not have been possible without all parties involved: “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 the project would “help deliver the next-generation infrastructure needed to unlock those breakthroughs” in artificial intelligence.

The investment will provide affordable energy through grid upgrades and excess capacity delivery; create jobs; support innovation via a large-scale data center; advance environmental cleanup at Portsmouth; and promote community development. Assistant Secretary of Environmental Management Tim Walsh called it “a major step forward for Southern Ohio’s economic and energy future,” emphasizing its role in restoration efforts at Portsmouth.

Construction is expected to begin this year. The announcement comes as DOE continues other initiatives such as providing $225 million for building energy code implementation according to DOE, encouraging international cooperation on clean energy transitions as seen in a July 2022 video, highlighting technology development for environmental management according to testimony before Congress, using innovative processes for groundwater remediation as reported by DOE Office of Environmental Management, announcing $96 million for clean vehicle technologies according to DOE, and launching over 140 programs supporting disadvantaged communities under Justice40 according to DOE.



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