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Jera, Dell and Rhaelm sign MoU for 400MW AI campus at Chiba gas plant

Apollo Global Management backs the first project, with operations targeted in or around 2028 and an estimated $15 billion across all phases.

At a glance

  1. The Chiba project is planned for up to 400MW of power capacity, with operations targeted for in or around 2028 and an investment across all phases—land, power infrastructure, construction and AI compute—estimated at $15 billion.
  2. The $15 billion is a program number rather than a building number.
  3. Chiba is an LNG-powered station with 4.38GW of maximum output, so the planned 400MW load is roughly a tenth of the host plant's capacity—a substantial data center and a contained draw on the generation behind it.

Jera, Dell Technologies and Rhaelm have signed a memorandum of understanding to develop what they describe as national-scale AI infrastructure in Japan, beginning with a behind-the-meter data center at Jera's Chiba Thermal Power Station that Apollo Global Management is backing, Data Center Dynamics reported. The Chiba project is planned for up to 400MW of power capacity, with operations targeted for in or around 2028 and an investment across all phases—land, power infrastructure, construction and AI compute—estimated at $15 billion.

The $15 billion is a program number rather than a building number. Divided across 400MW it comes to roughly $37.5 million a megawatt, and because the estimate also covers land, power infrastructure, cooling, construction and AI hardware, the per-megawatt figure is not a real estate figure.

A plant with 4.38GW already attached

Chiba is an LNG-powered station with 4.38GW of maximum output, so the planned 400MW load is roughly a tenth of the host plant's capacity—a substantial data center and a contained draw on the generation behind it. Because the campus sits behind the meter, it skips the interconnection queue that paces grid-connected development; Bradd Lewis, Rhaelm's chief executive and chief revenue officer, says co-locating at Chiba lets the facility be delivered "years ahead of a conventional grid-connected timeline," and that the deployment uses "the Dell AI Factory as our compute standard." Dell is supplying standardized rack-scale AI infrastructure, Rhaelm is handling data center development and delivery, and that leaves Jera with the site, the electrical works and the fuel.

The fuel is the more interesting half of the trade, because Jera's capabilities run the length of the LNG chain, from procurement, shipping and receiving terminals through gas infrastructure to downstream generation. Yukio Kani, Jera's global chief executive and chair, says the company is "uniquely positioned to power Japan's AI ambitions," describing a business that generates "one third of Japan's electricity" and supplies "nearly all of the power consumed in the Tokyo metropolitan area." For a gas-fired campus behind the meter, owning the fuel chain from procurement to regasification is the closest thing to controlling the input cost.

It is the dispatchable-asset case, and it matches this publication's reading of the transition premium: value accrues to whoever owns the dispatchable asset or the customer relationship, not to generation volume on its own. Jera's advantage is that Chiba looks like a template for repeat deployments: the partners say they will look at other Jera sites—more than 20—for similar projects, aiming for a multi-gigawatt footprint across Japan in the 2030s.

Read that ambition against what a build like this actually requires: a brownfield station brings land, fuel handling and a power connection that already exists, and a fleet of more than 20 such sites is inventory that cannot be assembled quickly from scratch. Whether the standard kit—Jera power, Dell racks, Rhaelm delivery—travels across that fleet is the open question, and Apollo's participation, the disclosed capital commitment behind the first instance, comes in a size and form the coverage does not specify.

Rhaelm, described in the report as a sovereign AI provider, is headquartered in London with operations in Europe and Asia Pacific and a stated ambition to reach gigawatt scale, making Chiba—power that already exists, converted into compute that is sold—the model it would need to repeat. The 2028 start date tests the first instance; the second test is whether the next sites arrive with tenants and prices attached, or with a name and a megawatt figure.

Reported by the Energy Transition desk from Data Center Dynamics. Published . Corrections

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