$36 billion! Japan commits Trump's first investment, pouring into U.S. energy

Japan has fulfilled its first investment commitment of $55 billion to the U.S., totaling $36 billion, with the most notable being a 9.2-gigawatt natural gas power plant project. This was one of the core elements of last year’s Japan-U.S. trade agreement.

U.S. Secretary of Commerce Howard Lutnick described this facility in Ohio as “the largest natural gas power plant in history.” The project will be operated by SB Energy, a subsidiary of SoftBank Japan, aiming to enhance grid reliability, expand base load power supply, and support American manufacturing with affordable energy.

Remaining funds will be used to build a synthetic diamond factory and the Texas GulfLink deepwater oil export terminal in Texas. The latter is expected to generate $20 billion to $30 billion annually in U.S. crude oil exports, with a daily export capacity of 1 million barrels.

This investment reflects the reality of surging U.S. electricity demand, especially driven by data centers powered by artificial intelligence. The International Energy Agency stated this week that global electricity demand is growing at the fastest rate in 15 years, with natural gas becoming the preferred energy source for providing uninterrupted power around the clock.

Largest Natural Gas Power Plant in History to Meet AI Power Needs

The 9.2-gigawatt natural gas power plant will be built in Ohio, accounting for most of the $36 billion initial investment. Secretary Lutnick stated that the project will “strengthen grid reliability, expand base load power, and support American manufacturing with affordable energy.”

The project directly responds to the rapid growth in U.S. electricity demand. Data from the International Energy Agency shows that U.S. electricity demand will grow by 2.1% in 2025, with an annual increase of nearly 2% expected by 2030. The rapid expansion of data centers will drive about half of this growth.

Natural gas, along with nuclear power, has become a major winner in the AI race, as both can provide the around-the-clock, uninterrupted power that data centers rely on. However, due to longer construction cycles and higher costs, natural gas power plants have gained priority.

Deepwater Oil Terminal Advances Energy-Driven Strategy

The Texas GulfLink deepwater oil export terminal project received approval from the Trump administration earlier this month. Led by Sentinel Midstream, it has a daily export capacity of 1 million barrels of crude oil.

Transportation Secretary Sean Duffy stated in a press release to Reuters: “The Texas GulfLink project demonstrates that by cutting unnecessary red tape and unleashing the fossil fuel industry, we create jobs domestically and stability abroad. This critical deepwater port will enable the U.S. to export our abundant resources faster than ever before.”

The Department of Commerce, in its briefing on the Japan agreement, indicated that this deepwater facility will generate between $400 billion and $600 billion in revenue over 20 years and advance President Trump’s energy-driven agenda.

Energy Commitments Under the Trade Agreement

Last year, most countries that reached a trade agreement with Trump to avoid large-scale tariffs on U.S. exports made commitments to energy imports, with tariff threats proving an effective tool in pursuing energy dominance.

The Japan-U.S. trade agreement was reached last summer, including proposals to reduce tariffs on Japanese imports from 25% to 15%, and Japan’s commitment to invest $5.5 trillion in the U.S. economy. Japan also pledged to expand market access for U.S. goods, including automobiles, agricultural products, and energy.

The most notable commitment in this regard is the EU’s pledge to purchase $750 billion worth of U.S. oil and natural gas. Analysts believe this target is unfeasible due to physical constraints, including limitations on the availability of such large-scale commodities, consumption restrictions, and price considerations.

Risk Warning and Disclaimer

Market risks are present; investment should be cautious. This article does not constitute personal investment advice and does not consider individual users’ specific investment goals, financial situations, or needs. Users should consider whether any opinions, views, or conclusions herein are suitable for their particular circumstances. Invest at your own risk.