The City of Yokohama and JERA Co., Inc. have signed a Memorandum of Understanding related to deliberations aimed at realizing a data center project on the grounds of JERA's thermal power station located in the waterfront area of the Port of Yokohama. The agreement was signed on October 3, 2025.

AI Technology and Data Center Power Requirements

The MOU comes as AI technology has evolved at a remarkable pace in recent years. As a fundamental technology underpinning society and industry, AI is expected to make a significant contribution to Japan's economic growth and sustainable social development. However, the data centers that support the development of AI technology require enormous amounts of electricity.

Reducing the environmental impact associated with electricity consumption, achieving low-carbon or decarbonized electricity, is an issue that needs to be addressed.

JERA's Strategic Initiative

JERA is Japan's largest power generation company and has decided to consider the feasibility of attracting data centers to JERA's thermal power station in the waterfront area of the Port of Yokohama and offering them power and other services. This decision aims to provide solutions to challenges facing data center businesses. The company is a global energy leader established in 2015 that produces one-third of Japan's electricity and is one of the largest LNG buyers in the world.

JERA has global reach and strength throughout the energy supply chain, from participation in LNG upstream projects and fuel procurement, through fuel transportation to power generation. In support of a responsible energy transition, JERA has committed to achieving net-zero CO2 emissions from its domestic and overseas businesses by 2050.

Port of Yokohama's Strategic Importance

The Port of Yokohama, where these thermal power stations are located, has developed as one of Japan's leading international trading ports and plays an important role in supporting economic activity across a broad area, including the Tokyo metropolitan area and eastern Japan. The City of Yokohama is moving forward with the Port and Harbor Decarbonization Plan for the Port of Yokohama, which it drew up together with private-sector businesses, and the formation of a Carbon Neutral Port in the Port of Yokohama.

The Port and Harbor Decarbonization Plan for the Port of Yokohama is a plan drawn up by the City of Yokohama in March 2025 to promote effective port usage that contributes to decarbonization through public-private partnership. The plan was produced based on deliberations by the Council of Waterfront Area Businesses Promoting the Decarbonization of the Port of Yokohama and comments solicited from the public.

It outlines its basic policy, implementation period, and targets, projects for the promotion of port decarbonization, and methods for evaluating progress.

Collaborative Development Framework

Under this MOU, JERA, a leader in zero-emission initiatives in the energy sector, will collaborate with the City of Yokohama, which is working with a broad network of private companies to promote decarbonization in the waterfront area. Together, they aim to attract the development of a data center within the premises of a thermal power plant located in the Port of Yokohama.

This initiative will prioritize responsible development that respects local characteristics and port operations, preserves the Port's essential role as a logistics hub, and fosters harmony with the surrounding community. The partnership will also advance the use of low-carbon and decarbonized electricity to power the data center. The City of Yokohama and JERA, by promoting the integration of power and telecommunications (“watt-bit collaboration”) in the waterfront area of the Port of Yokohama, will accelerate the establishment of data centers that are essential for upgrading the industrial structure.

This will contribute to achieving the efficient utilization of power infrastructure, the shift to low-carbon and decarbonized energy, and the strengthening of Japan's industrial competitiveness. Data centers are facilities that utilize information and communication technology to securely and efficiently store, process, and distribute large amounts of data. They are foundational to the operation of and services provided by corporations, public institutions, and cloud service businesses.

Waterfront areas (port areas) refer to land areas adjacent to the water area of a port that serve a variety of roles in logistics, production, and recreation. Such areas are designated under the City Planning Act to ensure the integrated utilization of the water area and its adjoining land areas.

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