Pranav Hotkar
Tokyo, Japan - April 6, 2026 - Mitsubishi Corporation and JFE Holdings have signed a second memorandum of understanding (MoU) to advance plans for a large-scale integrated power and data center project in the Ohgishima area of the Keihin industrial district, as demand for AI infrastructure accelerates.
The agreement follows an initial MoU signed in March 2025 and marks a transition toward the “concretization phase,” with both companies now aiming to establish a formal joint venture to develop and operate the combined power and data center business.
The project will be developed on a site of approximately five hectares located adjacent to JFE’s existing captive power plant, which has a generating capacity of around 190 megawatts. The facility is expected to support at least two data centers, with an initial 60 MW facility targeted to begin operations in fiscal year 2031.
The companies plan to leverage the proximity of the power plant to ensure stable and cost-competitive electricity supply, addressing one of the key constraints in hyperscale and AI-driven data center development. The initiative also includes plans for phased expansion, with the potential to scale into a multi-hundred-megawatt data center campus over time.
The development will be supported by MC Digital Realty, a joint venture between Mitsubishi Corporation and Digital Realty, which will provide expertise in data center design, development, and operations.
In parallel, Mitsubishi Corporation and JFE will explore enhancements to the existing power infrastructure, including potential capacity expansion and the integration of green energy sources. The companies are evaluating the use of hydrogen-based energy as part of a broader plan to establish a sustainable power supply aligned with future data center demand.
The Ohgishima site, located approximately 20 kilometers from central Tokyo, is part of a broader industrial land redevelopment initiative aimed at repurposing legacy industrial zones into next-generation infrastructure hubs. The project is positioned as a model for combining power generation and digital infrastructure to support AI and cloud computing growth.
Industry analysts note that integrated power and data center developments are becoming increasingly important as operators seek to secure reliable energy sources amid rising compute demand. The collaboration reflects a growing trend of co-locating data centers with dedicated power assets to improve efficiency and resilience.
With the second MoU in place, Mitsubishi Corporation and JFE are moving closer to formalizing the joint venture, positioning the project as a key component of Japan’s evolving AI infrastructure landscape.
