Updated March 20, 2026, 1:52 p.m. ET
PIKETON — Just outside the once-bustling Portsmouth Gaseous Diffusion Plant there is a national focus on producing energy, enough perhaps to power half the state of Ohio.
Amid the rusting hulks of old buildings and decades-old water towers, there is land that the U.S. Department of Energy hopes will become an energy hub for Ohio and model for the rest of the nation.
The U.S. Departments of Energy and Commerce on March 20 announced a unique public-private partnership with SoftBank and AEP Ohio to redevelop the land, modernize energy infrastructure, and develop advanced computing in southern Ohio. More details were to be released after a March 20 event.
SB Energy, a SoftBank Group company, is planning a 10-gigawatt power generation facility, including 9.2 gigawatts of natural gas generation, that will connect to the local grid and provide power to a new 10 gigawatt data center development at the Portsmouth site in Pike County.
Similar efforts will deliver lower electricity costs across the region, create thousands of American jobs, and strengthen America’s national security, officials have said.
The Japanese-owned SoftBank group is investing in the $33.3 billion facility.
“Thanks to President Trump, the U.S. government is leveraging its assets—like our federal lands—to add power generation, create jobs, and ensure the United States wins the AI race,” said Energy Secretary Chris Wright in prepared statements.
“Our Japanese partnership is a direct result of President Trump’s America First trade policies,” said Commerce Secretary Howard Lutnick said. “Japan has committed to invest $550 billion across America. The other projects include Alabama, Pennsylvania, Tennessee and Texas.”
The investment will support affordable energy, jobs creation, scientific discovery and environmental remediation.
AEP has said that a 765-kilovolt (kV) electric transmission facility would serve data center development at the site.
SB Energy is committed to paying for the $4.2 billion in new transmission investments to help avoid increases to transmission rates for Ohio residents. AEP Ohio expects power to begin flowing to the site in 2029.
“Ohio is experiencing some of the fastest electricity demand growth in the nation, driven by data centers. AEP Ohio is proud to have brought together our experienced team, the U.S. Department of Energy and SB Energy to develop this framework, and we celebrate the potential this investment has to help Pike County and Appalachian Ohio grow,” said Marc Reitter, AEP Ohio president. “The new transmission facilities are essential to powering this project and will unlock billions of dollars in regional investment. I am especially proud that our teams were able to develop a plan that supports economic development while protecting our ratepayers from the costs associated with this new infrastructure.”
Initial transmission lines are being planned and AEP Ohio is preparing to meet with community members for feedback.
The Ohio Power Siting Board will oversee the permitting of any new transmission lines, and the permitting process requires public input, environmental impact studies and socioeconomic and land use analysis.
Growth and development reporter Dean Narciso can be reached at dnarciso@dispatch.com.
