Softbank to invest in AI data centers in France

Softbank to invest in AI data centers in France

Softbank Group Corp has said that it to invest as much as 75 billion euros (US$87.44 billion) to build 5 gigawatts (GW) of artificial intelligence (AI) data center capacity in France, adding that the country is poised to become a top European hub for AI infrastructure.

The first phase comprises an initial 45 billion euro investment to deliver 3.1GW of AI data center capacity in the Hauts-de-France region by 2031, Softbank said in a statement on Saturday.

The commitment, which the company called its biggest AI infrastructure investments in Europe, reflect personal diplomacy between French President Emmanuel Macron and Softbank founder Masayoshi Son, who met during the French president’s visit to Japan this year.

Softbank CEO Masayoshi Son attends an event to pitch artificial intelligence for businesses in Tokyo on Feb. 3 last year.

“I was very impressed by the fact that Emmanuel Macron is so personally committed to ensuring France’s economic success, even though our investments have so far been concentrated mainly in the US, as well as in Japan and Asia,” French outlet La Tribune cited Son as saying in an interview.

Softbank’s initial investment plans to deliver data centers in Dunkirk, Bosquel and Bouchain. The company also plans to develop additional sites across France, “reinforcing the country’s role as a leading European hub for next-generation digital infrastructure,” it said in a statement.

Schneider Electric SE said it is set to be a partner in Dunkirk, with a goal of creating a hub for AI infrastructure and robotics manufacturing at a site well located to serve customers in London, Brussels and Amsterdam.

Macron and Son are expected to formally announce the investment during the Choose France Summit, an annual gathering of industry leaders to attract investment and promote France’s business appeal.

The French plan follows Softbank’s announcement in March to launch a large-scale data center project in Ohio, potentially channeling US$500 billion to install 10GW of capacity. It would be an AI computing complex powered with about US$33 billion worth of natural gas-fired electricity.

These undertakings come on top of a US$500 billion Stargate initiative that Softbank is working on in partnership with OpenAI, Oracle Corp and Abu Dhabi’s MGX to roll out data centers across the US. The company has also committed to investing more than US$60 billion in OpenAI for a stake of about 13 percent.

The efforts highlight Son’s growing ambitions to secure data center bases in major locations across the globe as AI companies race to acquire sufficient computing power and meet rising demand for their services, even though there are questions about whether Son can tap enough financing to realize all of his AI ambitions.

Macron has been an outspoken proponent of countries beyond the US and China building their own AI infrastructure, championing the idea of sovereign AI and investment in local players such as Mistral AI so nations can control their data and technology.