Introduction
This article provides an in-depth overview of the Southern Ohio Data Center project in Pike County, intended for industry professionals, local contractors, and stakeholders interested in the region’s economic and technological transformation. The Southern Ohio Data Center is a proposed 10-gigawatt, AI-focused campus paired with a 9.2-gigawatt natural-gas power plant on the former Portsmouth Gaseous Diffusion Plant site. The Portsmouth Gaseous Diffusion Plant, a decommissioned uranium enrichment facility, is being redeveloped into a large-scale data center and power generation site in southern Ohio. This development represents a fundamental shift in how digital infrastructure gets built and powered in the United States, with significant implications for economic impact, technological advancement, and workforce opportunities in the region.
Key Takeaways
The Southern Ohio Data Center in Pike County is a proposed 10-gigawatt, AI-focused campus paired with a 9.2-gigawatt natural-gas power plant on the former Portsmouth Gaseous Diffusion Plant site. This development represents a fundamental shift in how digital infrastructure gets built and powered in the United States.
- Combined investment exceeds $60 billion, making it potentially the largest private-sector project in Ohio history
- SoftBank (via SB Energy) will finance and operate the data center, with Japanese government backing for the $33.3 billion power plant and $4.2 billion in new transmission infrastructure
- Projected to create 35,000 construction jobs at peak and roughly 2,500 long-term operations positions
- Long equipment lead times, regulatory approvals, and grid upgrades could push timelines beyond initial 2029 power-on expectations
- Southern Ohio contractors and workforce development programs face a once-in-a-generation opportunity
Southern Ohio Data Center at PORTS: A New Benchmark for AI Infrastructure
Redeveloping a Historic Site
Where uranium enrichment once powered Cold War defense, artificial intelligence will soon drive the future. The Southern Ohio Data Center sits on the former Portsmouth Gaseous Diffusion Plant in Piketon, Pike County—federal land being transformed from nuclear history into cutting-edge computing. The Portsmouth Gaseous Diffusion Plant, a decommissioned uranium enrichment facility, is now being redeveloped as a data center and power generation site in southern Ohio. Piketon, Ohio, is now recognized as a significant site for both data center and energy development, marking a major shift in the region’s economic landscape.
Unprecedented Scale and Reliability
The data center campus is planned for up to 10 gigawatts of capacity, rivaling the largest single data center development ever announced in the country. SoftBank executives have claimed that the facility could surpass the combined computational power of today’s leading AI systems by hosting advanced machine learning workloads and large language models at an unprecedented scale.
Most data center facilities in the region adhere to Tier III standards, featuring N+1 or 2N redundancy for power and cooling systems. This means the Southern Ohio Data Center will be designed for high reliability, with backup systems to ensure continuous operation during maintenance or unexpected outages.
Opportunities for Contractors
For construction and electrical contractors across the Ohio Valley region, this project signals the arrival of AI-era infrastructure demanding specialized expertise in mission-critical and industrial energy construction.
Investment Scale, SoftBank’s Role, and International Backing
Massive Financial Commitment
The data center project is expected to cost $30-40 billion. The dedicated natural gas power plant adds another $33.3 billion, pushing total campus investment well beyond $60 billion.
SoftBank’s Strategic Vision
The company behind this initiative, SoftBank Group Corp, led by CEO Masayoshi Son, will fund and operate the data center through SB Energy. This positions the development as central to SoftBank’s $500 billion global AI infrastructure strategy. The power plant financing is expected to come from Japanese government-backed investment as part of the U.S.-Japan Strategic Trade and Investment Agreement—a commitment that emerged following discussions at the White House.
Regional and International Impact
This project is a major driver of commerce, strengthening regional and international economic activity through the U.S.-Japan Strategic Trade and Investment Agreement and supporting broader reindustrialization efforts. SB Energy has committed approximately $4.2 billion to high-voltage transmission upgrades with AEP Ohio. Masayoshi Son has pledged $300 million in site upgrades every five years and a one-time $40 million contribution to the local community.
This level of international capital flowing into a rural region creates rare opportunities for local contractors aligned with merit-shop principles to participate in world-scale work.
Why Southern Ohio? Site Selection, Energy, and Hyperscale Trends
Land and Transmission Advantages
Traditional data center hubs around Northern Virginia and Silicon Valley face mounting constraints: limited land, power bottlenecks, and community resistance. These pressures are pushing hyperscale developers toward emerging regions like Southern Ohio.
Pike County and the PORTS site offer distinct advantages:
- Abundant available land on federal property
- Existing high-voltage transmission lines from the former enrichment facility
Southern Ohio offers access to a high-capacity 765 kVA power system, with dense electric transmission lines and substations.
Natural Gas Resources
- Proximity to natural gas resources in the Appalachian Basin
Federal Ownership Benefits
- Federal ownership streamlines certain redevelopment aspects
To fully support the energy needs of a large-scale southern Ohio data center, new transmission lines will be necessary to expand grid capacity and ensure reliable power delivery.
The data center industry’s pivot toward AI makes energy demand and reliability the top site-selection criteria. Southern Ohio is quickly emerging as a regional digital infrastructure cluster, with additional proposals, including a 500,000-square-foot facility in Scioto County.
The 9.2 GW Natural Gas Plant: Co-Locating Power and Compute
Scale and Integration
The project’s dedicated 9.2 gigawatt natural gas power plant would be one of the largest gas-fired facilities ever proposed—capable of powering more than half of Ohio’s typical electrical load.
The plant is expected to consume roughly one-third of Ohio’s daily natural gas production. It’s designed as a “behind-the-fence” power source, tightly coupled to the data center campus, with excess electricity sold back into the grid during periods of lower demand.
Construction Requirements
Construction will require:
- Multiple large-frame gas turbines
- Extensive cooling systems
- Gas compression and metering infrastructure
- Water intake and discharge structures
- Robust physical security systems
This approach reflects a broader industry shift toward pairing AI facilities with dedicated on-site power generation rather than relying solely on regional utilities.
Transmission, Pipelines, and the Supporting Energy Ecosystem
Transmission Upgrades
The data center and gas plant cannot operate at full scale without parallel buildout of high-voltage transmission infrastructure and expanded pipeline capacity.
SB Energy’s $4.2 billion commitment with AEP Ohio covers new substations and high-voltage corridors tying the Piketon facility into the PJM Interconnection regional grid. Existing transmission lines from the legacy Department of Energy site provide a partial backbone but require significant reinforcement.
Pipeline Expansion
New and expanded natural gas pipelines will likely connect to major interstate lines serving the Utica and Marcellus shale regions. The regulatory approval process for new pipelines and transmission infrastructure can be complex and impact project timelines, making streamlined processes critical for timely completion. This layered energy infrastructure creates an ecosystem of sustained work for civil, electrical, mechanical, and pipeline contractors.
Economic Impact, Jobs, and Workforce Development in Southern Ohio
The Southern Ohio Data Center and power plant are projected to create up to 35,000 construction jobs at peak and about 2,500 long-term operations positions.
Construction phases will span a decade or more:
- Site Preparation: Remediation, grading, civil work
- Heavy Construction: Foundations, structural steel
- Systems Installation: Electrical, mechanical, HVAC
- Fit-Out: White space, low-voltage, fiber
- Ongoing Expansion: Phased capacity additions
Skilled trades in the highest demand include electricians, pipefitters, millwrights, HVAC technicians, and controls specialists. Data center and power plant projects require elevated safety standards and around-the-clock schedules—creating strong demand for contractors with accredited safety education and robust training programs.
Construction Challenges, Timelines, and Bottlenecks
While officials have referenced March 20, 2026, for groundbreaking ceremony activities and 2029 for initial power-on, significant uncertainties remain. Large-scale infrastructure projects like the Southern Ohio Data Center do not happen overnight; they require careful planning, coordination, and extended timelines.
Key bottlenecks include:
- Turbine lead times: Global demand has created wait times up to seven years for large-frame gas turbines
- Grid interconnection: PJM operates under a 5-6 year backlog for studies and approvals
- Pipeline permitting: New natural gas infrastructure requires multi-year federal and state reviews
Intel’s $28 billion semiconductor project near Columbus offers a realistic comparison—despite massive resources, that project has encountered multi-year schedule shifts. Even well-funded megaprojects must navigate structural constraints facing the broader construction and energy sectors.
Policy, Energy Strategy, and Electricity Cost Concerns
The Southern Ohio Data Center emerges amid national concerns about how rapid growth in data center development affects electricity demand and ratepayer costs, including its potential impact on consumers’ electricity bills.
SoftBank has pledged that the project will not increase electricity bills for the local community. The privately funded transmission investment is designed to ensure grid upgrades aren’t charged to Ohio consumers. The Ohio Consumers’ Counsel and regulators will scrutinize rate impacts as plans advance.
The project’s reliance on natural gas reflects the reality that AI facilities require consistent, around-the-clock power that intermittent renewables alone cannot yet provide. Major investments like this one are increasingly expected to internalize energy and infrastructure costs to win community support.
What the Southern Ohio Data Center Means for the Future of Digital Infrastructure
The Southern Ohio Data Center isn’t just another project—it’s a prototype for how future AI campuses may be designed and powered nationwide.
Three features make it a bellwether:
- Unprecedented computing density at 10 gigawatts
- Direct pairing with a massive dedicated natural gas plant
- Location in a rural region historically peripheral to the tech economy
The Trump administration played a significant role in facilitating large-scale infrastructure projects in the region, including the announcement of a $33 billion natural gas plant, which set the stage for major economic and energy investments such as the Southern Ohio Data Center.
Regions with access to land, energy resources, and adaptable construction workforces may see increasing interest from hyperscale investors. Contractors, suppliers, and industry professionals should view Piketon as a living case study in which construction, energy policy, and technology strategy converge at an unprecedented scale.
Southern Ohio Data Center Landscape: Regional Growth and Advantages
Southern Ohio, particularly the greater Columbus and Dayton areas, is a rapidly growing hub for data centers. Key facilities in Southern Ohio include Google and Amazon in New Albany and Iron Mountain in Dayton. The region offers access to a high-capacity 765 kVA power system, with dense electric transmission lines and substations. Data centers in the region offer high-security, carrier-neutral connectivity, and advanced, sustainable cooling. The region has favorable tax incentives for data center projects, including exemptions for IT equipment and building materials. Local governments in Ohio frequently grant property tax abatements lasting 15 to 30 years for data centers. Ohio offers up to 100% exemption on sales and use taxes for qualifying equipment, software, and construction materials. These advantages, combined with reliable infrastructure and a skilled workforce, make Southern Ohio an attractive destination for hyperscale and enterprise data center development.
FAQ
When is construction on the Southern Ohio Data Center and power plant expected to begin?
Public briefings have pointed to 2026 as a target year for major construction activity, following ongoing demolition and site preparation by the Department of Energy. Notably, a key project milestone was announced during a “Data Center Friday” event, underscoring the significance of the Southern Ohio Data Center’s development timeline. However, full build-out will likely extend into the 2030s due to equipment lead times, PJM grid approvals, and pipeline permitting.
How will this project affect local contractors and construction firms?
The scale of work creates opportunities for general contractors, specialty trades, and suppliers across civil, electrical, mechanical, and data center fit-out scopes. Firms with strong safety records, mission-critical experience, and robust apprenticeship programs will be best positioned to compete.
Will the data center and gas plant increase electricity bills for Southern Ohio residents?
SoftBank leadership has publicly pledged that the project will not result in higher electricity bills. SB Energy’s privately funded transmission upgrades are designed to avoid shifting costs onto existing Ohio customers, though regulators will continue to scrutinize rate impacts.
How does this project compare to Intel’s chip plant near Columbus?
With a combined investment exceeding $60 billion, the Piketon campus would be larger in nominal terms than Intel’s $28 billion semiconductor project. Both represent long-term, multi-phase buildouts signaling Ohio’s growing role in high-tech infrastructure.
What role can workforce development programs play in this project?
The 35,000 construction jobs at peak will require coordinated expansion of training and apprenticeship programs. Organizations that run merit-shop apprenticeships and safety training help prepare workers for complex industrial environments, ensuring that local residents capture economic benefits.
What other data centers and advantages does Southern Ohio offer?
Southern Ohio, especially the greater Columbus and Dayton areas, is home to major data center facilities, including Google and Amazon in New Albany and Iron Mountain in Dayton. The region offers access to a high-capacity 765 kVA power system, dense electric transmission lines and substations, and high-security, carrier-neutral connectivity with advanced, sustainable cooling. Favorable tax incentives include exemptions for IT equipment and building materials, property tax abatements lasting 15 to 30 years, and up to 100% exemption on sales and use taxes for qualifying equipment, software, and construction materials. These factors make Southern Ohio a leading destination for data center development.
