TLDR
- Dell Technologies, JERA, and RHAELM signed an MoU to build standardized AI infrastructure in Japan.
- The first project is a 400-megawatt hyperscale data center in Chiba, costing over $15 billion.
- JERA will supply power directly from its Chiba Thermal Power Station site.
- Apollo Global Management will serve as a financial partner for RHAELM on the project.
- Full operations are targeted for 2029, with phased rollout starting in 2028.
Dell Technologies (DELL) stock is in focus this week after the company announced a major partnership in Japan. Dell shares were largely steady following the news, as investors wait to see how the deal plays out over the next few years.
Dell has teamed up with Japanese power generator JERA and UK-based AI infrastructure developer RHAELM. The three companies signed a memorandum of understanding on Thursday to build a standardized model for AI infrastructure across Japan.
The plan starts with a hyperscale data center in Chiba. It’s expected to cost more than $15 billion once complete.
JERA will provide the land next to its Chiba power station for the project. RHAELM will handle construction, operation, and financing of the facility.
Dell’s role is to supply standardized, rack-scale AI infrastructure for the site. This means the computing hardware will follow a repeatable design rather than being custom-built each time.
Power Supply Details
The data center is planned to run at 400 megawatts once fully built out. JERA will supply that power under a long-term agreement lasting between 15 and 25 years.
Because the facility sits right next to JERA’s existing power plant, it can draw electricity directly from the site. This setup avoids some of the delays tied to traditional grid connections.
Apollo Global Management is also involved. The firm plans to act as a strategic investment and financing partner for RHAELM on the Chiba build.
Timeline and Expansion Plans
The companies expect to begin operating the data center in phases starting in 2028. Full capacity of 400 megawatts is targeted for 2029.
Beyond Chiba, the partners want to use this same model at other sites. JERA and RHAELM are already looking at additional locations across Japan.
The longer-term goal is to support several gigawatts of AI infrastructure capacity nationwide. That buildout would stretch into the 2030s.
The three companies say the point of standardizing the process is to cut down on lead times. Building each data center from scratch tends to be slow and complex.
By using one repeatable framework, they hope future projects move faster. The companies also said they plan to explore applying this model in other countries outside Japan.
JERA is Japan’s largest power generator and the world’s biggest buyer of liquefied natural gas. Its backing gives the project direct access to power infrastructure that smaller developers typically lack.
RHAELM will be the operator and developer on the ground for the Chiba facility. Dell’s part stays focused on the computing side of the buildout.
The MoU was signed Thursday and confirmed by all three companies in a joint statement. No additional financial terms beyond the $15 billion figure and power capacity were disclosed.
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