WASHINGTON, D.C. — A major federal partnership to build new power generation and a large-scale data center in southern Ohio is expected to lower electricity costs, expand energy capacity, and create thousands of jobs.
What This Means for You
- A new energy and data center project could lower regional electricity costs
- Thousands of jobs are expected from construction and long-term operations
- The project expands U.S. energy capacity to support growing AI demand
The U.S. Department of Energy and Department of Commerce announced a public-private partnership with SoftBank and AEP Ohio to redevelop federal land at the Portsmouth Site in Pike County.
Project Scope and Investment
As part of the project, SB Energy, a SoftBank Group company, plans to build 10 gigawatts of new power generation, including 9.2 gigawatts fueled by natural gas.
The power will support a new 10-gigawatt data center development at the site, designed to meet growing demand for computing tied to artificial intelligence and advanced technologies.
Officials said the project includes $33.3 billion in Japanese-backed funding tied to a broader U.S.-Japan trade and investment agreement.
Infrastructure and Cost Impact
The partnership also includes a $4.2 billion investment in transmission infrastructure upgrades across southern Ohio.
According to officials, these upgrades will be made without increasing costs to ratepayers and are intended to improve grid reliability while lowering electricity prices over time.
SB Energy has also committed to making excess power capacity available to the broader grid.
“AEP Ohio is proud that this partnership will bring critical infrastructure to Appalachian Ohio,” said AEP Chairman, President and Chief Executive Officer Bill Fehrman.
Focus on Energy and Technology Growth
Federal officials said the project is designed to support increased electricity demand driven by data centers and emerging technologies.
“By bringing new power online and upgrading our existing infrastructure, this investment supports the AI boom and cutting-edge technologies while strengthening our energy system and helping keep costs down for the American people,” said U.S. Energy Secretary Chris Wright.
SoftBank CEO Masayoshi Son said the project will help deliver infrastructure needed for next-generation computing and innovation.
Broader Economic and Community Impact
Officials said the investment is expected to support job creation, workforce development, and economic growth in southern Ohio.
The project also includes environmental cleanup efforts at the Portsmouth site, which has historically played a role in national security operations.
“This partnership is a major step forward for Southern Ohio’s economic and energy future,” said Assistant Secretary of Environmental Management Tim Walsh.
Next Steps
Construction on the project is expected to begin later this year.
Officials said the initiative is part of a broader effort to expand domestic energy production, strengthen supply chains, and support long-term economic development tied to advanced technologies.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.