SoftBank Plans $676 Million AI Data Center in Japan in Collaboration with OpenAI
SoftBank’s Major Acquisition for AI Development
On Friday, SoftBank Corp, a prominent Japanese investment firm, announced a significant deal to acquire properties linked to Sharp Corp’s liquid crystal panel factory located in Sakai City, Osaka Prefecture. This acquisition is valued at around 100 billion yen, which translates to approximately $676 million. The primary goal of this investment is to develop a large-scale data center focused on artificial intelligence (AI).
Details of the Acquisition
SoftBank’s strategic decision involves acquiring about 450,000 square meters of land and approximately 840,000 square meters of existing building space at the Sharp Sakai factory. The plan is to transform these assets into an AI data center capable of handling a 150-megawatt power capacity, with operations expected to commence by 2026. Reports indicate that there are future plans to enhance this facility’s power receiving capacity to over 250 megawatts.
Partnership with OpenAI
SoftBank has confirmed that this acquisition is part of its ongoing partnership with OpenAI, the organization behind the popular AI application, ChatGPT. Through this data center, SoftBank aims to foster the development of generative AI and other related AI technologies. Additionally, this facility will cater to a variety of external clients, including universities, research institutions, and private companies, thereby addressing diverse AI needs.
Strategic Investments in AI
In line with its ambitions in AI, SoftBank is also reportedly negotiating an investment ranging from $15 billion to $25 billion in OpenAI. If successful, this would make SoftBank the largest investor in OpenAI, surpassing Microsoft Corp, which has invested approximately $14 billion. Such investments illustrate the increasing competitive landscape among tech giants to dominate the AI sector.
The Stargate Initiative
In a related development, former President Donald Trump announced in January 2025 a significant investment initiative involving OpenAI, SoftBank, and Oracle Corp. This initiative, dubbed the Stargate project, aims to expand AI infrastructure across multiple sites, potentially totaling up to 10 locations. OpenAI and Oracle are collaborating to establish a data center in Texas that will utilize advanced AI chips from Nvidia Corp to support their $100 billion Stargate venture.
Collaboration on Data Center Development
OpenAI and Oracle have a history of working together, particularly in designing and implementing the Abilene data center, where Oracle is responsible for developing a powerful supercomputer. This partnership illustrates the commitment from both companies to push the boundaries of AI research and applications.
Facilities and Future Developments
The new AI data center planned by SoftBank will not only support internal AI development but will also serve as a resource for various sectors, allowing them to leverage advanced AI capabilities. The strategy reflects a broader trend where tech companies are investing heavily in infrastructure to improve AI technologies and services.
Broader Implications
The acquisition of the Sharp facility by SoftBank reflects how companies are positioning themselves in the rapidly evolving field of AI. As organizations like SoftBank and OpenAI drive innovation, the landscape of artificial intelligence will likely continue to expand, impacting various industries and societal norms. This strategic move by SoftBank highlights the growing importance of data centers in supporting AI developments, indicating significant future growth in this sector.
