Japan’s largest power producer JERA has partnered with Dell and UK developer RHAELM in a $140 billion initiative to develop AI data centres across the country, aiming to accelerate Japan’s AI infrastructure and reduce dependency on traditional grid connections.
- JERA, Dell, RHAELM, and Apollo team up for AI data centres
- Initial $15bn facility near Tokyo planned to open by 2028
- Focus on rapid deployment via direct power from JERA’s plants
What happened
Japan’s biggest electricity generator, JERA, has joined forces with technology giant Dell and UK infrastructure developer RHAELM to build AI data centres across Japan. They signed a non-binding agreement with financial backing from private equity firm Apollo. The cornerstone is a large-scale data centre adjacent to JERA’s gas-fired power station in Chiba, east of Tokyo. This facility alone will draw approximately 400 megawatts and cost over $15 billion, with operations expected to commence around 2028.
The deal leverages JERA’s ability to supply power directly to the data centres, bypassing lengthy grid connection delays. Dell will supply server racks, RHAELM will manage construction, and JERA will provide power and land. The partners envision replicating this model at multiple other JERA sites to build out several gigawatts of AI processing capacity nationwide by the 2030s.
Why it matters
This project represents one of Asia's largest AI data centre developments outside China, with a total estimated investment of up to $140 billion. By utilizing direct power connections from JERA's electricity plants, the data centres can be up and running years faster than typical grid-dependent facilities. Japan aims to significantly boost its AI processing infrastructure to avoid falling behind in the global AI race.
With additional investments like Blackstone’s $30 billion AI data centre plan in Japan, the country is rapidly scaling digital infrastructure critical for AI innovation and economic competitiveness. The government has warned about the risk of becoming an “AI colony” if Japan does not accelerate its domestic AI capabilities. This initiative exemplifies a strategic effort to assert leadership and secure technological sovereignty.
What to watch next
Key developments will include the progress and scale of the initial Chiba data centre, scheduled to begin operations in 2028. Observers will also watch whether JERA can successfully replicate the direct-power data centre model across other sites to achieve multi-gigawatt AI capacity in the coming decade.
Additionally, the project's financing and collaboration with private equity firms like Apollo will be crucial to scaling this infrastructure. The broader impact on Japan’s AI ecosystem, including any government support or regulatory facilitation, will also shape the long-term outcomes and competitiveness of Japan’s AI data centre industry.