Key points
- JERA, Dell, and RHAELM plan AI data centers across Japan
- The first project could exceed $15 billion in investment
- It would draw power directly from JERA's Chiba plant
JERA, Dell Technologies (DELL), and AI cloud company RHAELM signed a memorandum of understanding to develop a repeatable model for AI data centers across Japan, JERA announced on Oct. 1. Their first project is planned at JERA's Chiba Thermal Power Station near Tokyo, with up to 400 megawatts of power capacity and operations targeted to begin around 2028.
Investment in Chiba is expected to exceed $15 billion (2.3 trillion yen) across all phases, covering land, power infrastructure, construction, and AI computing equipment. Apollo Global Management (APO) intends to serve as an investment and financing partner for RHAELM on the project.
The power plant is the selling point
The Chiba project would draw electricity directly from JERA's operating plant, a setup known as behind-the-meter. The companies say this would allow it to come online years sooner than a project waiting for a conventional grid connection.
JERA, Japan's largest power generator, lists Chiba's maximum output at 4,380 megawatts. The data center's planned power capacity would equal about 9% of that.
"By co-locating at JERA's Chiba station and deploying the Dell AI Factory as our compute standard, we can deliver a 400MW facility years ahead of a conventional grid-connected timeline," RHAELM CEO Bradd Lewis said.
Each of the three companies has a role. JERA would provide power, fuel, and land next to its plants. Dell would supply its AI Factory infrastructure, including pre-integrated server racks designed for quick deployment. London-based RHAELM would lead construction and project delivery. The announcement didn't specify how much of the expected investment would go toward Dell equipment.
Chiba could become a model for other JERA sites
JERA and RHAELM plan to explore similar projects at other JERA sites, aiming for multiple gigawatts of AI capacity across Japan in the 2030s. JERA lists more than 20 thermal power stations in the country.
JERA says it generates about a third of Japan's electricity. It is owned equally by TEPCO Fuel & Power and Chubu Electric Power, according to its company profile. The release says the partnership is closely aligned with Japan's "Watt-Bit Collaboration" policy, which coordinates the development of power and telecommunications infrastructure.
For Dell, the partnership could create another market for its AI servers. The company raised its full-year revenue forecast by $25 billion on Sept. 1, when its AI server backlog reached $95 billion. The announcement doesn't disclose a Dell order.
