WASHINGTON, March 20 (Reuters) - The U.S. on Friday

announced a partnership between Japan's SoftBank Group

and U.S. group AEP to build a giant natural gas power

campus on federal land in Ohio, part of a wider Washington-Tokyo

trade deal.

As countries vie for leadership in the artificial intelligence

boom, SB Energy plans to connect a 9.2-Gigawatt gas plant to the

local grid and power a new data center at Portsmouth in Pike

County, Ohio. One gigawatt is enough power for about 1 million

U.S. homes.

During the Cold War, the U.S. produced enriched uranium for

weapons at Portsmouth. The U.S. has spent billions of dollars

decontaminating the site and its hundreds of buildings.

The public-private partnership includes $33.3 billion in

funding from Japan, the Department of Energy said.

The investment is part of a U.S. trade deal with Japan struck in

October that committed to invest $550 billion across the United

States on nuclear power, rare earth minerals, and other projects

as both countries looked to reduce China's dominance over

electronic components.

"With this historic trade deal we are reindustrializing the

country through critical projects like this $33-billion-dollar

power project," said Secretary of Commerce Howard Lutnick.

Friday's announcement also said SB Energy is investing $4.2

billion with AEP Ohio to upgrade and build transmission lines in

Southern Ohio.

Masayoshi Son, chairman and CEO of SoftBank Group Corp, said

the deal strengthens U.S. artificial intelligence leadership and

helps to secure capacity for energy and computing.

U.S. Energy Secretary Chris Wright said the U.S. government

"is leveraging its assets - like our federal lands - to add

power generation, create jobs, and ensure the United States wins

the AI race."