Japan plans to focus its next major investment projects in the US on the energy sector. This was stated by Japanese Minister of Economy, Trade and Industry Ryosei Akazawa in an interview with Nikkei Asia.
Energy is becoming one of the main pillars of the strategic economic partnership between Tokyo and Washington. The reason is the rapid increase in electricity consumption in the US, including due to the development of data centers and infrastructure for artificial intelligence.
The plans are part of the broader Japan-US Strategic Investment Initiative worth up to $550 billion. The mechanism was agreed in 2025 and provides for investments, loans and guarantees for projects in the US in areas strategically important for economic security.
The Japanese government emphasizes that the amount of $ 550 billion represents the maximum total amount of the financial framework, and not a one-time direct transfer of funds to the US.
Electricity for the AI boom
The direction of investments is already visible in the first approved projects.
In February 2026, Japan and the US agreed on the first package of three projects. The largest among them is a project for gas-fired power plants worth an estimated $33.3 billion, which should provide electricity, including for data centers with artificial intelligence.
Japanese companies such as Toshiba, Hitachi, Mitsubishi Electric and SoftBank Group have expressed interest in supplying equipment and participating in related activities.
Another project is for infrastructure for the export of American crude oil worth about $2.1 billion. Japanese companies such as Mitsui O.S.K. Lines, Nippon Steel, JFE Steel and MODEC.
The third project, estimated at approximately $600 million, is for the production of synthetic industrial diamonds used in the processing of automotive, aviation and semiconductor components.
The three projects have a combined estimated value of about $36 billion.
Nuclear power is also among the possibilities
Energy cooperation between the two countries is not limited to gas-fired power plants.
Earlier plans for Japanese investment in the United States included options for building new nuclear power plants, including Westinghouse AP1000 reactors and small modular reactors.
Such projects are considered participation of Japanese manufacturers and suppliers such as Mitsubishi Heavy Industries, Toshiba and IHI.
The reason for the increased interest in power generation is structural. The expansion of cloud services, data centers and artificial intelligence systems creates a need for significant amounts of reliable electricity and new infrastructure to transmit it.
Tokyo also seeks benefits for Japanese businesses
For Japan, the initiative is not just a tool for investing capital in the American economy. The government in Tokyo insists that the projects also create opportunities for Japanese companies.
This includes the supply of turbines, electrical equipment, components, materials and engineering services. The authorities are seeking to involve not only large industrial groups but also small and medium-sized Japanese enterprises in the projects.
Akazawa has already stated that the aim of the initiative is to bring mutual economic benefit, strengthen supply chains and increase the economic security of both countries.
The Japanese government also emphasizes that the mechanism does not mean automatic financing of every project proposed by Washington. The proposals go through a bilateral procedure for discussion and evaluation.
Energy becomes a strategic industry
The focus on electricity shows how the boom in artificial intelligence is also beginning to change international investment relations.
The development of AI no longer depends only on the production of semiconductors and the construction of data centers. An increasingly important question is where the electricity will come from and whether the grids can provide the necessary capacity.
It is precisely this need that Tokyo sees as an opportunity for Japanese industry. If the next projects are implemented according to plan, the energy sector could become one of the main areas through which Japan will fulfill its investment commitment to the United States.
For Washington, this means additional capital and industrial capacity to expand energy infrastructure. For Tokyo, the stakes are that Japanese companies will gain access to one of the fastest-growing investment markets created by the global race in artificial intelligence.