SoftBank Aims to Invest Up to €75 Billion in French AI Centers

(SeaPRwire) –   SoftBank Group Corp. intends to invest up to €75 billion ($87 billion) to construct 5 gigawatts of artificial intelligence data center capacity in France, stating the nation is positioned to emerge as a leading European hub for AI infrastructure.

The initial phase involves a €45 billion investment to establish 3.1 gigawatts of AI data center capacity in the Hauts-de-France region by 2031, SoftBank announced on Saturday.

This commitment, described by SoftBank as its largest AI infrastructure investment in Europe, stems from personal diplomacy between French President Emmanuel Macron and SoftBank founder Masayoshi Son, who met during Macron’s trip to Japan earlier this year.

Bloomberg reported that Son previously suggested SoftBank could invest up to $100 billion in France. The Japanese investor, accustomed to similar proposals from corporate executives, was engaged by the direct approach from a head of state and began seriously evaluating the opportunity.

Read More: SoftBank in Talks for Major Data Center Project in France

“I was very impressed that Emmanuel Macron is so personally dedicated to securing France’s economic prosperity, even though our investments have primarily been focused in the US, Japan, and Asia until now,” Son said in an interview cited by French publication La Tribune.

The first phase of SoftBank’s investment will establish data centers in Dunkirk, Bosquel, and Bouchain. The company also aims to develop further sites throughout France, “strengthening the country’s position as a premier European hub for next-generation digital infrastructure,” according to its statement.

Schneider Electric SE stated it is poised to be a partner in the Dunkirk site, aiming to create a center for AI infrastructure and robotics manufacturing in a location strategically placed to serve clients in London, Brussels, and Amsterdam.

Macron and Son are anticipated to officially unveil the investment at the Choose France Summit, an annual event that convenes industry leaders to draw investment and highlight France’s business advantages.

The French initiative follows SoftBank’s March announcement of a major data center project in Ohio, which could direct $500 billion to install 10 gigawatts of capacity. That AI computing complex would be powered by approximately $33 billion worth of natural gas-fired electricity.

These projects are in addition to a $500 billion Stargate initiative SoftBank is pursuing with OpenAI, Oracle Corp., and Abu Dhabi’s MGX to deploy data centers across the United States. SoftBank has also pledged to invest over $60 billion in OpenAI for an approximate 13% stake.

These endeavors underscore Son’s expanding ambition to secure data center locations in key global markets as AI firms compete to obtain adequate computing power to meet growing service demand. For SoftBank, the new projects could diversify its AI-related revenue streams beyond ChatGPT.

Questions remain regarding Son’s ability to secure sufficient funding for all his AI ambitions. Bloomberg reported that SoftBank reduced plans for a $10 billion margin loan backed by its OpenAI stake after encountering reluctance from some lenders. The conglomerate and its assisting bankers have since discussed aiming for a sum as low as $6 billion.

Macron has been a vocal advocate for nations outside the US and China to develop their own AI infrastructure, promoting the concept of sovereign AI and backing local entities like Mistral AI to allow countries to maintain control over their data and technology.