SoftBank to build up AI data centers in France with major investment
SoftBank Group Corp. is moving forward with plans to develop artificial intelligence (AI) data centers in France, including a significant project in Bosquel. The Japanese technology conglomerate, through a joint venture majority-owned by SoftBank Group and formed with Sesterce, has been selected to develop and operate a 1-gigawatt (GW) AI data center campus in Bosquel, France.
This initiative is part of SoftBank's broader strategy to build out AI infrastructure, with potential investments reaching multibillion-dollar figures. Discussions regarding a major AI data center project in France have been ongoing between SoftBank Group founder and CEO Masayoshi Son and French President Emmanuel Macron.
The Bosquel project is described as an important step in SoftBank's commitment to establishing a foundation in France, aiming to integrate large-scale compute capacity with local partnerships to support Europe's AI ecosystem, according to MarketScreener. Sesterce stated that the partnership represents a defining moment for the company and for the future of sovereign AI infrastructure in Europe.
The project is designed to deliver immediate economic impact and long-term value for Bosquel, the Hauts-de-France region, and France's wider AI ecosystem. This includes local job creation, regional investment, skills development, and community infrastructure, as reported by MarketScreener.
Masayoshi Son and President Macron held discussions about the project during a recent meeting in Tokyo, where Macron initially proposed the AI idea, according to people familiar with the matter. An announcement regarding the ambitious French AI data center project could potentially come as soon as this month, possibly during the annual "Choose France" Summit. The summit, launched by President Macron in 2018, aims to attract foreign investment and promote France's business appeal.
The overall investment being considered by SoftBank in France for AI-focused semiconductor fabs and data centers could reach as much as $100 billion, Bloomberg reported, citing people familiar with the matter. The broader Izanagi Project, a next-generation AI semiconductor fund and industrial initiative valued at approximately $100 billion, could potentially be centered in France, according to Thelec.net.
SoftBank's focus on AI infrastructure extends beyond France. The company has committed to investing more than $60 billion in OpenAI for a stake of about 13%. However, Bloomberg reported that SoftBank downsized plans for a $10 billion margin loan backed by the OpenAI stake after hesitation from some creditors, with discussions for the loan amount falling to as low as $6 billion.
The Bosquel data center campus is expected to combine large-scale data center capacity with local benefits. "This partnership with SoftBank represents a defining moment for Sesterce and for the future of sovereign AI infrastructure in Europe," MarketScreener quoted Sesterce as saying.