$36 billion! Japan's first investment pledged to Trump goes to US energy.

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Japan has fulfilled its first installment of the $550 billion investment commitment to the US, totaling $36 billion. Among the most notable is a natural gas power plant project with an installed capacity of 9.2 GW. This is one of the core contents of last year's US-Japan trade agreement.

US Commerce Secretary Howard Lutnick called the facility in Ohio the "largest natural gas power plant in history." The project will be operated by SB Energy, a subsidiary of Japan's SoftBank, aiming to enhance grid reliability, expand baseload power supply, and support US manufacturing with affordable energy.

The 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 $20–30 billion in US crude oil exports annually, with a daily export capacity of one million barrels.

This investment reflects the reality of surging US electricity demand, especially demand from AI-driven data centers. The International Energy Agency stated this week that global electricity demand is growing at the fastest rate in 15 years, and natural gas has become the preferred energy source for delivering reliable, round-the-clock power.

Largest Natural Gas Power Plant Ever Responds to AI Power Demand

The 9.2 GW natural gas power plant will be built in Ohio, taking up most of the $36 billion inaugural investment. Commerce Secretary Lutnick stated in a statement that the project will "strengthen grid reliability, expand baseload power, and support US manufacturing with affordable energy."

The project directly addresses the rapid growth in US electricity demand. According to the International Energy Agency, US electricity demand will grow by 2.1% in 2025, and by nearly 2% annually until 2030. The rapid expansion of data centers will drive half of this growth.

Natural gas, along with nuclear energy, has become the biggest winner in the AI race, as both can provide the round-the-clock power that data centers depend on. However, with longer construction cycles and higher costs for nuclear power, natural gas power plants have been given priority.

Deepwater Oil Terminal Promotes Energy Dominance Strategy

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

Transportation Secretary Sean Duffy said in a statement to Reuters: "The Texas GulfLink project demonstrates that when we cut unnecessary red tape and unleash the fossil fuel industry, we create jobs domestically and stability abroad. This critical deepwater port will enable the US to export our abundant resources faster than ever."

The Commerce Department stated in the briefing on the Japan agreement that this deepwater facility will generate $400–600 billion in revenue over 20 years and advance President Trump's energy dominance agenda.

Energy Commitments Under Trade Agreements

Last year, to avoid massive tariffs on US exports, most countries that struck trade deals with Trump made energy import commitments, and tariff threats proved an effective tool for pursuing energy dominance goals.

The US-Japan trade agreement was reached last summer, including a reduction in proposed tariffs on Japanese imports from 25% to 15%, as well as Japan's $550 billion investment commitment to the US economy. Japan also pledged to expand market access for US goods, including automobiles, agricultural products, and energy.

The most notable commitment in this regard is the EU's promise to purchase $750 billion of US oil and gas. Analysts believe this target is unattainable due to physical limitations, including constraints on available supply at such a scale, consumption limitations, and price considerations.

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