By Avi Salzman

A deal announced this week between the U.S. and Japan could help fund the largest power plant ever built in America, and benefit companies that drill and transport natural gas in the region. Japanese companies could also be winners.

President Donald Trump announced on Tuesday plans for a 9.2 gigawatt natural gas plant in Ohio, which is expected to receive funding from the Japanese government.

The plant would be more than twice as large as the biggest existing natural gas plant in America and could produce enough electricity to serve more than five million people. The total cost could come to $33 billion, according to the Commerce Department and the Japanese government.

The Commerce Department didn't respond to a request for details on the funding or the timeline for construction. Most conventional natural gas plants have less than 1 gigawatt of capacity and take at least five years to build.

There is a good chance the power plant will be used for other purposes beyond residential electricity, given there are few major population centers nearby.

The plant is being developed by SB Energy, which is backed by Japanese technology company Softbank. A fact sheet from the Japanese government says the plant will be used "to supply electricity to AI data centers, etc." Softbank has several data center projects under way in the U.S., including one in Lordstown, Ohio, that is expected to be completed this year and is part of its Stargate project with OpenAI.

The natural gas plant will be located in the southern Ohio town of Portsmouth. The area is rich in natural gas from deposits known as the Marcellus and Utica shale. Some of the producers and pipeline companies that operate there could be in good shape to profit off the project.

Two of the largest producers in the area are EQT and Expand Energy, says Rob Thummel, senior portfolio manager at Tortoise Capital.

Thummel also expects the plant to benefit companies that own nearby pipelines, including TC Energy and Enbridge.

Japanese companies should benefit, too. Japan is likely to offer debt financing to the project, according to Jennifer Schuch-Page, an energy expert at The Asia Group. And Japanese companies -- including names such as Toshiba, Hitachi, and Mitsubishi Electric -- may end up working on the project.

"The Japanese government is trying to show back to its public that it's not just giving money to the US -- that it's investing in projects that are profitable and will be beneficial to Japan's interest," Schuch-Page said.

Write to Avi Salzman at avi.salzman@barrons.com

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February 20, 2026 00:01 ET (05:01 GMT)

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