$36 billion! Japan's first investment promised to Trump is directed towards American energy

Japan has fulfilled its first tranche of the $550 billion investment commitment to the U.S., totaling $36 billion, with the most notable project being a 9.2 gigawatt natural gas power plant. This was one of the core elements of last year's U.S.-Japan trade agreement. U.S. Secretary of Commerce Howard Lutnick referred to the facility in Ohio as "the largest natural gas power plant in history." The project will be operated by SB Energy, a subsidiary of Japan's SoftBank, and aims to enhance grid reliability, expand baseload power supply, and support U.S. manufacturing with affordable energy. The remaining funds will be used to build a synthetic diamond factory and the Texas GulfLink deepwater oil export terminal in Texas. The latter is expected to generate $20 billion to $30 billion in U.S. crude oil exports annually, with a daily export capacity of 1 million barrels. This investment reflects the reality of surging electricity demand in the U.S., particularly driven by data centers powered by artificial intelligence. The International Energy Agency stated this week that global electricity demand is growing at its fastest pace in 15 years, with natural gas becoming the preferred energy source for providing round-the-clock uninterrupted power. The Largest Natural Gas Power Plant to Meet AI Power Demand The 9.2 gigawatt natural gas power plant will be built in Ohio, accounting for the majority of the $36 billion initial investment. Secretary Lutnick stated in a press release that the project will "strengthen grid reliability, expand baseload power, and support U.S. manufacturing with affordable energy." The project directly responds to the rapid growth in U.S. electricity demand. According to the International Energy Agency, U.S. electricity demand is expected to grow by 2.1% in 2025 and nearly 2% annually by 2030. The rapid expansion of data centers will drive half of this growth. Natural gas, along with nuclear power, has emerged as the biggest winner in the AI race, as both can provide the uninterrupted power that data centers rely on. However, due to the longer construction cycles and higher costs associated with nuclear power, natural gas power plants have been prioritized. Deepwater Oil Terminal Advances Energy Dominance Strategy The Texas GulfLink deepwater oil export terminal project received approval from the Trump administration earlier this month. The project, led by Sentinel Midstream, has a daily export capacity of 1 million barrels of crude oil. Transportation Secretary Sean Duffy stated in a release to Reuters, "The Texas GulfLink project demonstrates that when we cut unnecessary red tape and unleash the fossil fuel industry, we create jobs domestically and stability abroad. This key deepwater port will enable the U.S. to export our abundant resources faster than ever before." The Department of Commerce stated in a briefing on the Japan agreement that the deepwater facility is expected to generate $400 billion to $600 billion in revenue over 20 years and advance President Trump's energy dominance agenda. Energy Commitments Under the Trade Agreement Most countries that reached trade agreements with Trump last year to avoid large tariffs on exports to the U.S. made energy import commitments, with the threat of tariffs proving to be an effective tool in pursuing energy dominance goals The Japan-U.S. trade agreement was reached last summer, which includes a proposal to reduce tariffs on Japanese imports from 25% to 15%, as well as Japan's commitment to invest $550 billion in the U.S. economy. Japan also promised to expand market access for U.S. goods, including automobiles, agricultural products, and energy. The most notable commitment in this regard is the European Union's promise to purchase $750 billion worth of U.S. oil and natural gas. Analysts believe this target is unattainable due to physical factors, including limitations on the availability of such a large volume of goods, consumption restrictions, and price considerations