SoftBank says it will invest up to €75 billion to build French data centers

SoftBank committed up to €75 billion to build and operate French data centers with a target capacity of 5 gigawatts. The Japanese conglomerate plans to develop the infrastructure as part of broader European expansion efforts in AI-powered computing resources.

The investment reflects SoftBank's strategy to capture Europe's surging demand for data center capacity. Major cloud providers and AI companies require massive computing power, creating a bottleneck in available infrastructure. SoftBank's move positions it as a significant player in the European data center market, competing against operators like Digital Realty, Equinix, and local French providers.

France represents an attractive market for data center development. The country offers reliable power grids, favorable cooling conditions, and growing government support for AI infrastructure as part of European tech sovereignty initiatives. The 5-gigawatt capacity aligns with Europe's push to reduce dependence on U.S.-based cloud infrastructure and build homegrown AI capabilities.

SoftBank's Vision Fund has invested heavily in infrastructure globally. This French commitment extends that thesis into critical computing assets. The scale of investment suggests SoftBank expects sustained demand from hyperscalers, enterprise AI deployments, and government research initiatives across Europe.

Timing matters here. The EU's AI Act and digital regulations create incentives for European-based infrastructure. Companies operating under stricter data residency requirements need local capacity. SoftBank's plan addresses that regulatory tailwind while capturing value from infrastructure scarcity.

The 5-gigawatt target represents substantial capacity. For context, France currently operates roughly 1 gigawatt of hyperscale data center capacity. SoftBank's build-out would quintuple available resources, reshaping the European computing landscape. Execution remains critical. Data center construction faces supply chain constraints, rising energy costs, and permitting delays across Europe.