TOKYO (dpa-AFX) - JFE Holdings, Inc. (JFEEF5411.T), and Mitsubishi Corp. (8058.T, MSBHF), said they have signed a second memorandum of understanding.
The agreement moves forward a joint plan to build a power and data center project in the Ohgishima area of the Keihin District, with the goal of forming a joint venture.
The second MOU follows an initial agreement signed in March 2025 to study the project's feasibility.
The companies, along with MC Digital Realty, confirmed that a data center can be built on about five hectares of land using power from JFE's existing plant.
The project will combine a data center and power supply, supported by a 190 MW power plant located about 20 km from central Tokyo.
The company aims to start operations of an initial 60 MW data center in fiscal year 2031, with plans to expand capacity over time.
The partners will also study increasing power generation and using greener energy, including a planned hydrogen hub, to meet future demand.
The companies said the project is intended to meet rising demand for data centers and ensure a stable and sustainable power supply, while supporting Japan's industrial growth.
JFE Holdings is currently trading 0.89% lesser at JPY 1,834.50 on the Tokyo Stock Exchange.
Mitsubishi is currently trading 1.10% lesser at JPY 5,415 on the Tokyo Stock Exchange.
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