JERA, Japan's largest power generator, has signed a memorandum of understanding with Dell Technologies and London-based RHAELM to build national-scale AI infrastructure in Japan, starting with a data center of up to 400 megawatts at its Chiba Thermal Power Station, the companies said Thursday. Total capital spending across all phases is expected to exceed $15 billion, or about 2.3 trillion yen, with operations targeted to begin around 2028.

What Happened

Under the agreement, each company takes a distinct role. JERA will supply round-the-clock power and land next to its generating stations. Dell will provide standardized, rack-scale AI systems through its Dell AI Factory offering. RHAELM, a developer of sovereign AI infrastructure that pairs power supply with data center projects, will lead delivery and integration. Apollo Global Management is named as the strategic investment and financing partner.

The Chiba site will run on gas-fired generation backed by JERA's own liquefied natural gas chain, which spans procurement, shipping, import and regasification as well as power generation. JERA describes the arrangement as a behind-the-meter model, meaning power flows directly from the plant to the data center. The companies said the Chiba project would be the largest single-site AI infrastructure deployment in Japan and one of the largest in Asia.

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JERA Global CEO and Chair Yukio Kani said the company's combined LNG and power business puts it in a position to deploy AI capacity quickly and at scale. Arthur Lewis, president of Dell's infrastructure solutions business, described a standardized compute platform with security and data sovereignty built in. RHAELM CEO Bradd Lewis said the model turns "stranded power capacity" into sovereign AI infrastructure years ahead of typical timelines.

Why It Matters

Power, more than chips, has become the binding constraint on AI data center growth in many markets, and Japan is no exception. Nikkei Asia, which reported the deal Thursday evening Tokyo time, said placing the facility next to the JERA plant is intended to avoid adding pressure to the grid. Locating compute at an existing power station lets a developer use generation and grid connections that are already in place instead of waiting for new transmission capacity.

The deal also matters for Japan's AI policy goals. The partners repeatedly framed the project as sovereign infrastructure, meaning computing capacity located and controlled domestically, a priority for governments that want AI workloads and sensitive data to stay inside their borders.

The Gas Question

Relying on gas-fired generation ties the project to JERA's LNG business. Japan imports nearly all of its natural gas, and JERA's control of procurement and shipping is central to its pitch that it can guarantee supply around the clock. It also means the campus will draw on fossil-fuel generation rather than new renewable supply.

What to Watch

The memorandum is not a final investment decision. The companies said they will first establish the standardized model at Chiba and then evaluate other JERA sites, with ambitions for multi-gigawatt capacity across Japan in the 2030s and possible expansion to other countries. Binding contracts, Apollo's financing commitment, permits and the identity of the first tenants have not been announced, and progress on those will show whether the 2028 start date holds.