Japan’s largest power generator JERA has signed a memorandum of understanding with Dell Technologies and UK-based developer RHAELM to develop a major AI data center next to its Chiba Thermal Power Station. The project carries an expected total investment exceeding $15 billion and is designed to deliver up to 400 megawatts of capacity.

Apollo Global Management intends to join as RHAELM’s strategic investment and financing partner. The facility will operate behind the meter, drawing electricity directly from JERA’s existing generation assets rather than relying on a conventional grid connection.

Project Structure and Roles

Under the agreement, JERA will supply the land and continuous power under a contract lasting 15 to 25 years. Dell Technologies will provide standardized rack-scale AI computing infrastructure. RHAELM will oversee development, construction, operations and financing of the data center.

The partners aim to establish a repeatable template that combines power generation, cooling systems and AI compute into a single standardized design. This approach is intended to speed future deployments by avoiding the need to rebuild electrical, cooling and computing systems from scratch at each new site.

Timeline and Capacity

Phased operations are targeted to begin around 2028, with the site expected to reach full capacity by 2029. At 400 MW, the Chiba facility would rank among the largest single-site AI deployments in Japan and one of the biggest in Asia.

If the initial project proceeds as planned, the companies intend to replicate the model at additional JERA power sites. Their longer-term ambition is to support multi-gigawatt AI capacity across Japan during the 2030s.

Addressing Power Constraints

New grid connections in the Tokyo area can require five to ten years, a delay that has repeatedly slowed data center development even after funding is secured. By placing the facility directly beside an operating thermal plant, the partners seek to bring computing capacity online years earlier than a standard grid-tied project would allow.

JERA generates roughly one-third of Japan’s electricity and supplies nearly all the power used in the Greater Tokyo region. The long-term power purchase agreement locks in electricity costs for the data center while securing a stable offtaker for JERA.

Broader Context

The initiative aligns with Japan’s Watt-Bit Collaboration policy, which seeks closer coordination between power and digital infrastructure. Japanese officials have previously expressed concern that the country must expand domestic computing capacity to keep pace with the United States and China.

The $15 billion Chiba project forms part of a wider wave of capital flowing into AI infrastructure. Large U.S. investors have already signaled interest in Japanese data center development, and the addition of Apollo further expands that presence.

By integrating power supply, financing and standardized computing hardware at a single location, the partners aim to create a scalable framework that can be applied more rapidly across Japan and potentially beyond.