Japan, US shortlist initial $550B investment projects
Japan and the United States have narrowed down a selection of projects as the first candidates under Tokyo’s planned $550 billion investment in the US, including a large-scale SoftBank Group-linked data centre project, according to two sources familiar with the matter, News.Az reports, citing Reuters.
The two governments have been intensifying discussions to select the initial projects under the investment scheme, which was agreed as part of Japan’s deal with Washington to reduce tariffs on Japanese exports to the United States, the sources said on Monday.
Officials aim to formalize the first project ahead of Prime Minister Sanae Takaichi’s planned visit to the United States this spring, according to the sources, who spoke on condition of anonymity due to the confidential nature of the talks.
A total of four sources confirmed that the shortlisted projects include a major infrastructure plan led by SoftBank Group focused on data centre construction.
Japan's investment package would include equity, loans and loan guarantees from state-owned agencies Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI).
Japan and the U.S. have held four consultation committee meetings since December to discuss potential projects, involving the U.S. Department of Commerce and Department of Energy, and from Japan, the ministries of foreign affairs, finance and industry, along with JBIC and NEXI.
Talks have already begun with Japanese megabanks, which could join JBIC in financing the projects, the sources added.
Based on input from the consultation committee, the investment committee led by the U.S. Secretary of Commerce will make recommendations to President Donald Trump, who will make the final selection.
While a U.S. Supreme Court ruling on the legality of Trump's global tariffs is imminent, Tokyo has said it plans to proceed with the investment initiative regardless of the outcome, saying it's designed to jointly build key supply chains and benefit both countries.
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