Japan, U.S. Shortlist First Projects Under $550 Billion Investment Plan, Including SoftBank-Linked Proposal

TOKYO — Jan 19 (GeokHub) Japan and the United States have narrowed down an initial group of projects under Tokyo’s planned $550 billion investment initiative targeting the U.S., with one of the leading candidates involving SoftBank Group, sources familiar with the matter told source on Monday.

The shortlist follows intensified talks between the two governments as they move to implement the investment package, which was agreed as part of a broader deal aimed at reducing U.S. tariffs on Japanese exports.

Officials are seeking to formalise the first project ahead of Prime Minister Sanae Takaichi’s expected visit to the United States later this spring, according to the sources, who spoke on condition of anonymity because the discussions are not public.

SoftBank Data Centre Project Among Leading Candidates

Four sources said one of the front-running proposals involves a large-scale data centre infrastructure project linked to SoftBank, highlighting growing cooperation between the two countries in digital infrastructure and advanced technology.

SoftBank did not immediately respond to a request for comment.

Japan’s investment package is expected to include a mix of equity investments, loans and loan guarantees, backed by state-owned institutions including the Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI).

Bilateral Consultations Intensify

Since December, Japan and the U.S. have held four consultation committee meetings to identify potential projects. The talks involve the U.S. Departments of Commerce and Energy, alongside Japan’s ministries of foreign affairs, finance and industry, as well as JBIC and NEXI.

Discussions have also begun with Japanese megabanks, which could join JBIC in financing selected projects, the sources said.

Based on recommendations from the consultation committee, an investment committee led by the U.S. Secretary of Commerce will submit proposals to President Donald Trump, who will make the final decisions.

Investment Plan to Proceed Despite Tariff Uncertainty

The initiative is moving forward even as the U.S. Supreme Court prepares to rule on the legality of Trump-era global tariffs. Tokyo has said the investment plan will proceed regardless of the outcome, stressing that it is designed to strengthen shared supply chains and deliver mutual economic benefits.