Japan, U.S. narrow first $550 billion investment picks, including SoftBank-linked data center project

Japan and the United States have short-listed initial projects under Tokyo’s planned $550 billion U.S.-bound investment initiative, including a large-scale data center construction project linked to SoftBank Group, two sources familiar with the matter told Reuters on January 19, 2026. The governments aim to finalize the first project ahead of Prime Minister Sanae Takaichi’s spring visit to the U.S., as part of a broader agreement to reduce tariffs on Japanese exports. Four sources confirmed that the SoftBank-led infrastructure proposal is among the finalists. Japan’s funding will include equity, loans, and guarantees from state agencies JBIC and NEXI. The U.S. Department of Commerce and Department of Energy, along with Japanese ministries and financial institutions, have held four consultation meetings since December. Final recommendations will be made by the U.S. investment committee led by Secretary of Commerce Howard Lutnick and submitted to President Donald Trump for approval. Japan plans to proceed regardless of an upcoming Supreme Court ruling on Trump’s global tariffs, emphasizing shared supply chain development benefits.