JERA Partners with Dell and RHAELM to Develop AI Infrastructure

Dell Technologies, JERA, and RHAELM Holdings agreed to collaborate on AI infrastructure projects in Japan. They aim to standardize power, electrical, cooling, and computing systems for large-scale AI data centers. The first project, in Chiba, will have 400 MW capacity and require $15B in investment, with operations starting around 2028.

JERA, Dell, and RHAELM signed an MoU to develop AI infrastructure in Japan, starting with a $15B data center in Chiba. JERA will provide land and power, RHAELM will develop and operate, and Dell will supply AI infrastructure. The project aims to begin operations in 2028 and reach full capacity in 2029.

JERA and Dell plan a standardized AI data center in Chiba, Japan, with Apollo Global Management as a partner. The project, starting in 2028 and reaching full capacity in 2029, aims to create a reusable template. JERA's 15- to 25-year power deal for the 400 MW facility could make the $15 billion project more financeable, with predictable electricity costs and standardized design reducing risks for investors.

Susquehanna reiterated its Positive rating on Dell (NYSE: DELL) with a $700 price target, implying 28% upside. Analyst Mehdi Hosseini cited AI inferencing demand as a growth driver. Dell reported record revenue of $47B in Q2 2027, up 58% YoY, with AI servers contributing $16.4B. The company raised its fiscal 2027 guidance to $192B in revenue and $74B in AI server revenue.

Susquehanna reiterated a Positive rating on Dell (NYSE:DELL) with a $700 price target, citing AI-driven demand for servers. The stock has risen 335% YTD, with analysts projecting continued growth. Dell's revenue grew 49% over the last year, and 22 analysts revised earnings estimates upward. The company recently raised $5B in senior unsecured notes and is focusing on AI investments.

Dell Technologies' stock fell 2.8% to $546.86 after joining Nvidia's OpenShell AI ecosystem. The company has $130B in AI-server orders and expects $74B in fiscal 2027. Dell aims to expand beyond server supply, offering AI systems and management services. Its shares are 134.9% above the GF Value estimate.