Trump Deal for a $33B Gas Megaplant in Ohio Faces Huge Hurdles

The Trump administration recently unveiled plans for a massive $33 billion, 9.2-gigawatt natural gas-fired power plant in southern Ohio, to be developed by SB Energy, a subsidiary of Japanese tech giant SoftBank. The project, touted by the U.S. Department of Commerce as part of a trade deal with Japan, is slated for an area near Portsmouth, with Energy Secretary Chris Wright, Commerce Secretary Howard Lutnick, Interior Secretary Doug Burgum, and SoftBank CEO Masayoshi Son expected to provide more details in Piketon, Ohio. Despite the grand announcement, the project faces substantial skepticism and numerous hurdles. Energy analysts, such as Dennis Wamsted from the Institute for Energy Economics and Financial Analysis, express doubts about the plant's construction, particularly at the proposed size. Key challenges include securing equipment amid a supply chain backlog for gas turbines—which are reportedly sold out through 2029 or 2030—and finding skilled labor due to high demand in other energy sectors, including data centers. Regulatory approvals present another significant obstacle. The project must gain approval from PJM Interconnection, the grid operator for the region, which has a backlog of applications. PJM spokesperson Jeff Shields confirmed that the operator was unaware of the project prior to the announcement but acknowledged the need for new supply due to "burgeoning data center/large load demand growth." Additionally, SB Energy needs siting and construction permits from Ohio regulators, for which no applications have yet been filed. While a new state law aims to expedite priority project permits, issuance is not guaranteed, and appeals could add years. Further complicating matters, the U.S. Supreme Court recently ruled against the widespread tariff program that formed the basis of trade concessions, potentially impacting SoftBank's commitment if financial risks for the Ohio plant increase without the threat of higher tariffs. The project also requires new pipelines and infrastructure for natural gas supply, necessitating additional state and federal regulatory approvals.