Japan has delivered the first portion of its $550 billion investment commitment to the United States, totaling $36 billion. The most notable project is a natural gas power plant with a capacity of 9.2 gigawatts. This initiative was a key component of the US-Japan trade agreement finalized last year.
The facility, located in Ohio, has been described as the largest natural gas power plant in history. It will be operated by SB Energy, a subsidiary of Japan's SoftBank, and aims to enhance grid reliability, expand baseload power supply, and support American manufacturing with affordable energy.
The remaining funds will be allocated to the construction of a synthetic diamond factory and the Texas GulfLink deepwater crude oil export terminal in Texas. The latter is projected to handle 1 million barrels per day, generating between $20 billion and $30 billion in annual US crude exports.
This investment reflects the surging demand for electricity in the United States, particularly driven by data centers powering artificial intelligence. The International Energy Agency noted this week that global electricity demand is growing at its fastest pace in 15 years, with natural gas emerging as the preferred energy source for providing round-the-clock power.
The 9.2-gigawatt natural gas plant, which will consume the majority of the initial $36 billion, is a direct response to rapidly increasing US power needs. Data indicates US electricity demand grew by 2.1% in 2025 and is expected to increase by nearly 2% annually through 2030, with data center expansion accounting for half of this growth.
Natural gas and nuclear power have become the primary beneficiaries of the AI boom, as both can supply the uninterrupted power required by data centers. However, natural gas plants are being prioritized due to nuclear power's longer construction timelines and higher costs.
The Texas GulfLink deepwater oil export terminal received approval from the previous administration earlier this month. The project, led by Sentinel Midstream, will have a daily export capacity of 1 million barrels of crude oil. Officials stated that the deepwater port will enable the US to export its abundant resources more efficiently than ever before. The facility is expected to generate between $400 billion and $600 billion in revenue over 20 years, advancing the nation's energy dominance agenda.
Under last year's trade agreement, which helped Japan avoid substantial tariffs on exports to the US, several nations made energy import commitments. The US-Japan pact, reached last summer, included reducing proposed tariffs on Japanese imports from 25% to 15%, alongside Japan's $550 billion investment pledge. Japan also committed to expanding market access for US goods, including automobiles, agricultural products, and energy.
The most notable commitment in this regard came from the European Union, which pledged to purchase $750 billion worth of US oil and gas. Analysts, however, consider this target unachievable due to physical constraints, including limitations on commodity availability, consumption patterns, and price considerations.