Mitsubishi Corp. Commits $3.9 Billion to Expand U.S. Solar Operations by 160% by 2028

Japanese trading house Mitsubishi Corp,will boost its solar power generation capacity in the U.S. by 160% by 2028, Nikkei has learned, with a total project cost estimated at $3.9 billion.

The company will prioritize local procurement of solar equipment and leverage generous U.S. tax incentives designed to accelerate clean energy deployment.

Driven by the explosive growth of electricity demand, especially from data centers, global competition in energy infrastructure is intensifying. In this landscape, solar energy continues to stand out as a cost-effective alternative to offshore wind and nuclear, particularly in the geographically expansive U.S. market.

The U.S. Energy Information Administration (EIA) forecasts a 49% growth in solar capacity by 2026, far exceeding the projected 13% rise in wind and flat growth in nuclear.

Through its Boston-based affiliate Nexamp, Mitsubishi currently manages around 1.1 GW of solar assets. By 2028, it plans to grow this figure to 2.9 GW, fueled by a projected capital outlay of 550 billion yen ($3.9 billion).

To date, Nexamp has focused on small-scale solar installations along the East Coast. That will change in 2027, when it launches its first utility-scale solar farm in the Southwest, followed by large-capacity projects in the Midwest and beyond. These will be paired with battery energy storage systems to ensure a stable electricity supply for major consumers, including data centers.

The U.S. solar market also benefits from abundant land and less logistical complexity in domestic sourcing. Even during the Trump administration, solar projects remained eligible for federal tax credits, attracting Japanese investment from groups like Itochu and SoftBank.

Itochu’s U.S. subsidiary, Tyr Energy, is currently developing 29 solar projects totaling 5 GW and aims to reach 10 GW by 2030. The firm plans to invest 100–150 billion yen ($687 million–$1.03 billion) over the next 3–5 years, targeting an increase in annual U.S. energy sector profits from 11.5 billion yen in FY2024 to 30 billion yen by FY2028.

Meanwhile, SoftBank Group’s U.S. power business operates 2.55 GW across eight solar sites and is constructing three more. Its goal is to surpass 15 GW in the mid- to long term. In 2024, SoftBank launched a 900 MW solar plant in Texas that supplies electricity to Google’s data centers.

The U.S. currently offers a 30% federal tax credit for solar development, a policy introduced in the 2000s and retained during Trump's presidency. Under President Joe Biden, the credit was expanded by an additional 10%–20% for projects using American-made components.

According to an Itochu spokesperson, the declining cost of solar technology now enables projects to move forward even without subsidies.