JERA Partners with Dell on $15 Billion AI Infrastructure Project to Transform Japan into AI Hub

JERA Unveils $15 Billion AI Infrastructure Development in Japan with Dell and RHAELM

Japan's largest power generator JERA signed a memorandum of understanding with Dell Technologies and UK-based AI infrastructure developer RHAELM to accelerate AI infrastructure development in Japan1

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. The partnership centers on a $15 billion hyperscale data center in Chiba that will become Asia's largest AI data center project outside China2

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. Apollo Global Management plans to serve as a strategic investor and financing partner for RHAELM in this venture3

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The three companies aim to create a standardized framework for building AI infrastructure at a national scale, addressing one of the biggest constraints on AI deployment: electricity supply constraints. This model will reduce the lengthy lead times and complexity involved in developing each project independently1

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400-Megawatt Data Center Targets 2028 Launch

The AI data center project in Chiba will deliver 400-megawatt capacity adjacent to JERA's Chiba Thermal Power Station near Tokyo. JERA will make available land next to its existing 4,380-megawatt power station, while RHAELM will develop, construct, operate and finance the 400-megawatt-class hyperscale AI data center3

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. Operations are expected to begin in phases around 2028, with full capacity targeted for 20291

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JERA will supply 400 megawatts of power capacity under a 15- to 25-year agreement, while Dell Technologies will provide standardized, rack-scale AI infrastructure1

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. The total capital deployment exceeds $15 billion across all phases, spanning land, power infrastructure, facility construction and AI computing equipment4

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Speed to Power: Bypassing Grid Constraints for Faster AI Computing Power

"The keyword is speed to power," said Yukio Kani, global chief executive of JERA2

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. The strategic positioning beside JERA's existing power station allows the data center to draw electricity directly from the site rather than wait for a conventional grid connection. This approach could bring AI computing power online years earlier than traditional development methods3

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Kani highlighted JERA's portfolio of 35 million tonnes of liquefied natural gas traded annually that can fire power stations, positioning Japan as a major data center market in Asia outside China2

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. The facility will not be connected to the grid, ensuring dedicated power supply for the hyperscale data center2

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Dell's AI-Server Business Sees Record Growth

Dell Technologies continues to experience extraordinary demand for AI infrastructure. The company's AI-server orders reached a record $60.9 billion in its latest quarter, while AI-server revenue hit $16.4 billion3

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. Dell ended the period with a $95 billion AI-server backlog and now expects $74 billion in fiscal 2027 AI-server revenue3

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. The Chiba AI data center project represents a significant opportunity for Dell to deploy its rack-scale computing infrastructure in one of Asia's largest facilities.

Japan's $140 Billion Push for National-Scale AI Deployment

The Chiba project serves as the foundation for a broader $140 billion investment scheme aimed at positioning Japan as the world's largest AI infrastructure hub outside the US and China2

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. JERA's Kani told the Financial Times that the three companies would aim to develop 3 to 4 gigawatts of AI data centers and gas power infrastructure within five years. He estimated 1 gigawatt costs $35 billion to $45 billion, implying the overall cost of $140 billion2

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JERA and RHAELM intend to explore rolling out the standardized framework at other JERA sites across Japan, planning to support multigigawatt AI infrastructure capacity across the country in the 2030s4

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. The partners also aim to establish the model first in Japan and explore opportunities for global expansion in other markets1

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Closing the Gap in Cloud Computing Infrastructure

Japan currently lags behind the US and China in data center capacity. According to an International Data Center Authority report, US data centers consume 29.2 gigawatts of electricity, accounting for 43 percent of global data center consumption, compared with 8.5 gigawatts in China and just 1.7 gigawatts in Japan2

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. The Japanese government is targeting ¥32.7 trillion ($206 billion) of public-private investment in cloud computing and data center infrastructure by 2035 as part of Prime Minister Sanae Takaichi's plan to invest in strategically important sectors2

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Japan is home to large data center operators such as NTT Data and SoftBank, while Blackstone plans its own $30 billion push in Japan over the coming years2

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. The JERA-Dell-RHAELM partnership represents a significant step in Japan's effort to close this infrastructure gap and establish itself as a competitive player in the global AI arms race.