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Japan eyes $140bn AI data centre push with Dell and JERA, FT reports

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Japan’s biggest power generator is teaming up with Dell to build AI data centres across the country. The push could cost as much as $140bn, the Financial Times reported. JERA, Dell and UK developer RHAELM signed a non-binding agreement on Thursday, JERA said. Private equity firm Apollo will help fund the work as RHAELM’s financing partner.The first project sits next to JERA’s gas-fired power station in Chiba, east of Tokyo. It will draw about 400 megawatts and cost more than $15bn, or ¥2.3tn, across all phases.Operations are due to start around 2028. The FT said the site would be among Asia’s largest outside China.

Skipping the grid queue

The plan’s selling point is speed. The data centre will take power straight from JERA’s plant, rather than wait years for a grid connection.

“We can deliver a 400MW facility years ahead of a conventional grid-connected timeline,” said Bradd Lewis, RHAELM’s chief executive.

Each firm has a set role. JERA brings the land and power, Dell supplies ready-built racks of servers, and RHAELM runs the build.

JERA says it generates about a third of Japan’s electricity.

“JERA is uniquely positioned to power Japan’s AI ambitions,” said Yukio Kani, its global chief executive.

The partners want to copy the model at other JERA sites. The aim is several gigawatts of AI capacity across Japan in the 2030s.

A crowded field

JERA has not put its own figure on that wider rollout. The $140bn estimate comes from the FT’s reporting.

Others are piling in too. In June, Blackstone said it planned $30bn for Japan AI data centres over the next few years.

Japan’s digital minister has warned the country could become an “AI colony” if it falls behind.



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