JFE Holdings and Mitsubishi Corporation 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 Japan’s Keihin industrial district. This marks a significant step toward transforming former heavy industrial land into next-generation AI infrastructure. The agreement also follows earlier feasibility studies conducted since 2025 and moves the project into a concretization phase. This phase includes preparations for a joint venture and initial site development. The development will also combine hyperscale data center capacity with dedicated on-site power generation using an existing 190 MW captive power plant. Additionally, the development is expected to position the site as a key digital infrastructure hub near Tokyo. This is alongside others such as TY1 data center campus in Saitama City in the Greater Tokyo area.

Why JFE-Mitsubishi Integrated Power and Data Center Project is Important

The project is a show of the global shift toward co-located energy and data infrastructure, particularly as AI workloads drive exponential growth in power demand. In Japan, this challenge is especially acute due to limited urban land availability and grid constraints, making integrated solutions increasingly attractive.

Ohgishima – located in Kawasaki within the Keihin industrial belt – is undergoing a major transformation under JFE’s “OHGISHIMA 2050” land-use strategy. The strategy aims to repurpose former steelworks into a carbon-neutral industrial and digital hub.

For Mitsubishi, the project aligns with its positioning of data centers and power systems as “AI infrastructure”, essential for supporting digital economies. The initiative also builds on its existing partnership with Digital Realty through MC Digital Realty, which brings global hyperscale development expertise to the project.

Project cost

While there have not been updated costs in the latest MoU, a capital investment in the range of ¥100-150 billion ($660 million-$1 billion) for initial phases had been mentioned earlier.

Fact Sheet for JFE-Mitsubishi Integrated Power and Data Center Project

Project location: Ohgishima in Keihin District, Kawasaki, Japan

Site size: 5 hectares (initial phase)

Initial capacity: 60 MW data center

Power source: Existing 190 MW captive power plant

Target operations start: FY2031

Project type: Integrated power and data center infrastructure

Project team

JFE Holdings – Landowner, power infrastructure provider, and industrial redevelopment lead

Mitsubishi Corporation – Co-developer and strategic investor

MC Digital Realty – Data center development and operations partner

Digital Realty – Indirect partner via MC Digital Realty