SoftBank Plans $676 Million AI Data Center in Japan Through OpenAI Partnership
SoftBank’s Strategic Acquisition of Sharp’s Facilities for AI Development
Overview of the Acquisition
On Friday, SoftBank Corp, the Japanese investment company, announced a significant agreement to acquire the land, buildings, and assets associated with Sharp Corp’s liquid crystal panel factory located in Sakai City, Osaka Prefecture. This deal, estimated to be worth about 100 billion yen (approximately $676 million), aims to establish a large-scale artificial intelligence (AI) data center.
Purpose of the Acquisition
SoftBank’s strategic acquisition is designed to further its collaboration with OpenAI, a leading AI organization known for developing cutting-edge technologies. The new data center will span around 450,000 square meters of land and utilize approximately 840,000 square meters of existing buildings from the Sharp facility. With a projected power capacity of 150 megawatts, operations at this data center are expected to commence in 2026.
Future Plans for the AI Data Center
SoftBank has plans to expand the power capacity of the data center to over 250 megawatts. This facility is envisioned to support the development of generative AI technologies and other AI-related ventures. In addition to its own projects, SoftBank intends to make the data center available to universities, research institutions, and corporate entities, addressing diverse external demands.
Investment in OpenAI
In a further commitment to AI development, SoftBank is reportedly discussing a substantial investment ranging from $15 billion to $25 billion in OpenAI. If realized, this investment would position SoftBank as the largest stakeholder in the company, overtaking Microsoft Corp’s previous investment of $14 billion in OpenAI.
Broader AI Initiatives
The acquisition of Sharp’s facility is part of a larger initiative involving OpenAI, SoftBank, and Oracle Corp. In January 2025, President Donald Trump announced a monumental $500 billion collaboration aimed at expanding AI infrastructure. Under this initiative, the companies plan to introduce a new data center in Texas, which will utilize AI chips from Nvidia Corp. This facility represents a part of the planned Stargate initiative, which could potentially expand to ten locations.
OpenAI and Oracle are also working together on another data center project in Abilene, Texas. Here, Oracle is tasked with orchestrating the development of the supercomputer that will be established at the site, enhancing computational capabilities for AI projects.
SoftBank’s Role in AI Development
SoftBank’s movement into the AI space highlights a broader trend within the technology sector, as companies recognize the significance of large-scale AI infrastructures. The emergence of generative AI and machine learning applications necessitates robust data management and processing capabilities, which reinforces the need for substantial investment and infrastructure development in this area.
With this acquisition, SoftBank is not only positioning itself as a key player in the AI field but also ensuring that it can provide necessary resources and capabilities to both its own projects and external clients. The upcoming data center is expected to become a pivotal resource for advancing AI technologies and supporting research and development across various sectors.
By enhancing its infrastructure and forming strategic partnerships, SoftBank is setting the stage for long-term growth in the rapidly evolving landscape of artificial intelligence. This initiative reflects the company’s vision to embrace advanced technologies and harness the potential of AI to transform industries.
Important Takeaways
- SoftBank’s acquisition of Sharp’s facility is part of a broader strategic move to establish an AI data center.
- The facility will support generative AI development and serve external clients, including educational and research institutions.
- Ongoing discussions for a potential investment in OpenAI further solidify SoftBank’s commitment to the AI sector.
- The partnership with Oracle and the establishment of data centers across regions signifies a strong collective effort to advance AI capabilities.
Related Developments
As the tech industry continues to evolve rapidly, SoftBank’s actions reflect an increasing focus on building robust AI infrastructures to meet future demands. The planned AI data center and its capabilities are a critical step toward achieving this goal, aligning with global trends in AI innovation and application.
