Japan unveiled up to $73 billion in new energy investments in the United States, as Prime Minister Sanae Takaichi met President Donald Trump at the White House in a summit overshadowed by the ongoing U.S.-led conflict with Iran and mounting pressure on Tokyo to contribute militarily in the Strait of Hormuz.
The package, announced through a document titled “Joint Announcement on Strategic Investments between the U.S. and Japan,” represents the second tranche of Japan’s $550 billion investment commitment made under a tariff agreement with Washington last year roughly doubling the $36 billion first round announced just last month
The centerpiece is up to $40 billion for small modular nuclear reactors developed by GE Vernova [GE Vernova Inc. +2.20%] Hitachi Nuclear Energy, a joint venture between the two companies. The reactors will be built in Tennessee and other locations across the United States, according to Japan’s Yomiuri Shimbun. An additional $33 billion will fund two natural gas-fired power plants in Pennsylvania and Texas.
All three projects are aimed at meeting surging electricity demand driven by data centers powering artificial intelligence. Japanese companies including Toshiba, Mitsubishi Electric, and Hitachi will supply critical parts and equipment, a strategy Tokyo sees as an engine for Japanese export growth.
The GE Vernova Hitachi BWRX-300 small modular reactor already has regulatory momentum in the United States. The Tennessee Valley Authority submitted a construction permit application to the Nuclear Regulatory Commission in May 2025 for the first such reactor at Clinch River in Oak Ridge, Tennessee, and the Department of Energy awarded a $400 million grant to accelerate its deployment later that year.
