Japan and the United States have accelerated bilateral negotiations to identify inaugural projects under a monumental $550 billion investment initiative, with a major SoftBank Group infrastructure venture emerging as a leading candidate, according to sources familiar with the discussions.
The investment framework, originally conceived as part of broader trade negotiations between Tokyo and Washington, represents a strategic economic partnership designed to strengthen supply chain resilience and mutual economic interests. Four individuals with direct knowledge of the proceedings confirmed that governmental committees have intensified deliberations to finalize project selections ahead of Japanese Prime Minister Sanae Takaichi’s anticipated spring visit to the United States.
Among the shortlisted ventures is a substantial data center development project connected to SoftBank Group, though the technology conglomerate has not publicly commented on its potential involvement. The investment package will incorporate multifaceted financial instruments including direct equity positions, loan facilities, and guarantee mechanisms administered through Japan’s state-owned financial institutions.
The Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI) will serve as primary vehicles for deploying capital, with preliminary discussions already underway with major Japanese financial institutions regarding co-financing arrangements. Since December, bilateral consultation committees featuring representatives from multiple U.S. departments (Commerce and Energy) and Japanese ministries (Foreign Affairs, Finance, and Industry) have conducted four substantive meetings to evaluate potential investments.
The final selection process will involve recommendations from a U.S.-led investment committee headed by the Commerce Secretary to President Donald Trump, who retains ultimate authority over project approvals. Japanese officials have emphasized their commitment to advancing the initiative irrespective of pending Supreme Court rulings regarding the legality of presidential tariff authorities, characterizing the investment partnership as a mutually beneficial strategy for strengthening critical supply chains beyond temporary trade disputes.