Japan Eyes $140bn AI Data Centre Push with Dell and JERA, FT Reports
Japan’s biggest power generator, JERA, is partnering with Dell to build AI data centres nationwide. The ambitious project could cost up to $140 billion, according to a Financial Times report.
JERA, Dell, and UK developer RHAELM signed a non-binding agreement on Thursday. Private equity firm Apollo will provide funding for the venture as RHAELM’s financing partner.
The initial project, located adjacent to JERA's gas-fired power station in Chiba, east of Tokyo, is expected to consume approximately 400 megawatts and cost over $15 billion (¥2.3 trillion) throughout all phases. Operations are scheduled to begin around 2028. The FT reports that this site could become one of the largest AI data centres in Asia outside of China.
Skipping the Grid Queue
The project's primary advantage lies in its speed. By drawing power directly from JERA’s plant, the data centre can avoid lengthy waits for grid connection.
"We can deliver a 400MW facility years ahead of a conventional grid-connected timeline," stated Bradd Lewis, CEO of RHAELM.
Each company plays a distinct role: JERA provides land and power, Dell supplies ready-built server racks, and RHAELM handles the construction.
JERA, which generates approximately one-third of Japan's electricity, believes this partnership is crucial to advancing the country's AI ambitions.
Expanding Capacity in the 2030s
The partners aim to replicate this model at other JERA sites, with a long-term goal of several gigawatts of AI capacity across Japan in the 2030s. However, JERA has not provided an exact figure for this wider rollout. The $140 billion estimate comes from the FT's reporting.
Other players are also entering the market. In June, Blackstone announced plans to invest $30 billion in Japan's AI data centres over the next few years. Japan's digital minister has warned that falling behind could turn the country into an "AI colony."