Apollo-Backed Chiba AI Hub Targets $15 Billion Japan Buildout With JERA, Dell and RHAELM

The planned Chiba Project, an AI infrastructure development to be built at JERA's Chiba Thermal Power Station, is expected to require total capital deployment exceeding USD 15 billion across all phases, covering land, power infrastructure, facility construction, and AI compute.

Supported by power capacity of up to 400 MW, it would become the largest single-site AI infrastructure deployment in Japan and one of the largest in Asia today.

Operations are targeted to begin around 2028, with the facility behind-the-meter from JERA's operating generation asset, a configuration the companies say enables capacity delivery years ahead of a conventional grid-connected development schedule.

Framework Agreement Signed on October 1 to Standardize Deployment

The Chiba Project sits at the center of a Memorandum of Understanding signed on October 1, 2026, by JERA Co., Inc., Japan's largest power generator; Dell Technologies, a global technology leader; and RHAELM Holdings Ltd., a sovereign AI infrastructure developer.

The agreement establishes a standardized framework for building AI infrastructure at a national scale in Japan, with Chiba planned as the first application of the model.

According to the parties, the framework addresses a key constraint on rapid deployment of AI computing capacity across Japan: the current need to design and integrate power generation, electrical infrastructure, cooling, and AI compute on a project-by-project basis.

The companies aim to create a standardized, repeatable, and scalable model from the outset, reducing the lengthy lead time and complexity involved in developing each project independently. The model is intended to be established first in Japan, with opportunities in other markets to be explored over time.

The Chiba development will serve as a real-world basis for informing and refining the approach.

Distinct Roles for Each of the Three Companies

Each partner assumes a defined role under the arrangement. JERA acts as the energy partner, providing the large-scale, 24/7 power that AI infrastructure requires. Locating AI facilities on land adjacent to JERA's power stations can shorten the path to power, allowing computing capacity to come online more quickly and expand as demand grows.

Dell Technologies contributes the Dell AI Factory, which standardizes the compute layer through pre-integrated, rack-scale infrastructure designed for rapid deployment. RHAELM leads project delivery, drawing on its experience developing large-scale AI compute infrastructure and integrating JERA's power and site capabilities with the Dell AI Factory to create a scalable model for deployment across Japan.

The companies state that Japan's ability to scale AI infrastructure at speed will depend on reliable gas-fired generation and a resilient LNG value chain.

The collaboration combines JERA's integrated capabilities across LNG procurement, shipping, import and regasification, and power generation, with Dell's standardized rack-scale AI infrastructure and RHAELM's data center development and delivery capabilities, aiming to establish an integrated model connecting LNG supply with AI computing for deployment in Japan and globally.

Expansion Plans Point Toward Multi-Gigawatt Capacity in the 2030s

Beyond the initial site, JERA and RHAELM intend to explore deployment of the standardized model at other JERA sites, with the stated ambition of supporting multi-gigawatt-scale AI infrastructure capacity across Japan in the 2030s.

Apollo Global Management Inc. intends to serve as a strategic investment and financing partner for RHAELM for the first project in Chiba, according to the announcement. The three companies position the Chiba site as the template for broader deployment across Japan and, over time, potentially other markets.

Policy Alignment with Watt-Bit Collaboration and GX Strategy

The initiative supports Japan's national drive to expand domestic AI computing capacity and develop the power and digital infrastructure needed to underpin its AI economy.

It is closely aligned with the Government of Japan's push for "Watt-Bit Collaboration," the coordinated development of electricity and telecommunications infrastructure, and its broader GX Strategic Area policy encouraging data center clusters and new technology-led industrial hubs.

Executives Highlight Energy Scale, Sovereignty, and Stranded Power

Yukio Kani, Global CEO and Chair of JERA, said the company is uniquely positioned to power Japan's AI ambitions.

"We already generate one-third of Japan's electricity and supply nearly all of the power consumed in the Tokyo metropolitan area, with capabilities spanning the full LNG value chain, from fuel procurement, shipping, receiving terminals, and gas infrastructure through to downstream power generation and reliable operations, complemented by a growing renewable energy portfolio," Kani said.

He added that by combining those capabilities with Dell Technologies and RHAELM, AI infrastructure can come online faster with access to large-scale, reliable energy in a complex and fuel-constrained market like Japan, creating a model deployable at scale across Japan and, over time, potentially in other markets.

Arthur Lewis, President of Dell Technologies' Infrastructure Solutions Group, said deploying AI infrastructure at a national scale requires a foundation built for control, flexibility, and growth from day one.

"Dell Technologies provides a standardized platform that lets organizations run AI on their terms, with security and data sovereignty built in," Lewis said. "This collaboration with JERA and RHAELM is designed to deliver that foundation, creating the compute capacity Japan needs to develop and scale its own AI innovation."

Bradd Lewis, CEO and Chief Revenue Officer of RHAELM, said RHAELM was built to solve exactly this kind of challenge, taking stranded power capacity and turning it into sovereign AI infrastructure.