Dive brief:
- Bechtel, the second largest contractor in the US by revenue, has signed a memorandum of understanding with the Department of Commerce to support Japan Investment of 550 billion dollars in the USA power, data center and manufacturing infrastructure, the firm announced Tuesday.
- In addition to Reston, Virginia-based Bechtel, the White House listed Omaha, Nebraska-based Kiewit as a contractor that will help meet these critical infrastructure needs.
- During his visit to Tokyo on Tuesday, President Donald Trump outlined the main ones projects included in Japan’s investment during a signing ceremony with the Japanese Prime Minister, Sanae Takaichi.
Diving knowledge:
The funds include up to $332 billion for critical energy infrastructure. Under that umbrella are power plants, substations and critical transmission systems, according to a White House fact sheet.
As the US pushes onshore manufacturing, data centers are booming in the age of artificial intelligence. Now they make up the much of the private non-residential constructionand contractors with data centers in their portfolios report an additional four months of backlog on their books.
To that end, the White House fact sheet says the agreement with Japan also contains:
- A $30 billion partnership with Mitsubishi Electric to supply power plant systems and data center equipment.
- Up to $25 billion in collaboration with TDK for advanced electronic components and power modules.
- Up to $20 billion with Fujikura to supply fiber optic cables.
“Technology leadership begins with infrastructure leadership. Before you can unlock computing power and power the next generation of AI, you must design and build its enabling infrastructure,” said Brendan Bechtel, Bechtel’s president and CEO, in a press release. “We are honored to play a role in this landmark agreement, advancing America’s innovation, AI leadership and energy security.”
