Dive Brief:
Bechtel, the second largest contractor in the U.S. by revenue, has signed a memorandum of understanding with the Department of Commerce to support Japan’s $550 billion investment in U.S. power, data center and manufacturing infrastructure, the firm announced Tuesday.
In addition to Reston, Virginia-based Bechtel, the White House listed Omaha, Nebraska-based Kiewit as a contractor that will help deliver those critical infrastructure needs.
While on his visit to Tokyo, President Donald Trump Tuesday outlined major projects included in Japan’s investment during a signing ceremony with Japanese Prime Minister Sanae Takaichi.
Dive Insight:
The funds include up to $332 billion for critical energy infrastructure. Under that umbrella are critical power plants, substations and transmission systems, per a White House Fact Sheet.
As the U.S. pushes manufacturing onshore, data centers are booming in the age of artificial intelligence. They now make up the bulk of private nonresidential construction, and contractors with data centers in their portfolios report four additional months of backlog on their books.
To that end, the White House fact sheet says the deal with Japan also contains:
A $30 billion partnership with Mitsubishi Electric to supply power station systems and equipment for data centers.
Up to $25 billion in collaboration with TDK for advanced electronic components and power modules.
Up to $20 billion with Fujikura to supply optical fiber cables.
“Leadership in technology begins with leadership in infrastructure. Before you can unlock computing power and power the next generation of AI, you have to design and build its enabling infrastructure,” Brendan Bechtel, Bechtel chairman and CEO, said in a news release. “We’re honored to play a role in this historic agreement, advancing innovation, AI leadership, and America’s energy security.”
AloJapan.com