SoftBank plans up to 5GW data center buildout in France, investment of up to €75bn

SoftBank plans to develop and operate 5GW of AI data center capacity in France, with an investment of up to €75 billion ($87.5bn). The first phase, requiring an initial €45bn ($52.5bn) investment, aims to deliver 3.1GW of AI data center capacity in the Hauts-de-France region by 2031. The initial data centers are planned for Dunkirk (Loon-Plage), Bosquel, and Bouchain. “AI is entering a new era, and the countries that build the infrastructure for this transformation will shape the future of technology, industry and society,” said SoftBank founder Masayoshi Son. “SoftBank is proud to make this major commitment to France. With its industrial capabilities, talent base and national ambition, France is uniquely positioned to become a leading AI infrastructure hub in Europe.” Roland Lescure, France’s Minister of economy, finance, & industrial, energy, & digital sovereignty, said: “SoftBank’s decision to invest massively in AI data centers in France – a first for the group in Europe – is testament to President Emmanuel Macron’s ambition to position France as a leading destination all along the AI value chain.” “It reflects our country’s substantial assets: fast access to the most reliable electrical grid in Europe, a strong digital and industrial ecosystem with a skilled workforce, and a government that works in unison with local authorities and stakeholders to fast track procedures for strategic projects.” State-owned nuclear energy giant EDF is partnering on the buildout, with the company providing the site of a former power plant in Bouchain to SoftBank for development. Alongside the planned data center buildout, SoftBank plans to partner with French power and cooling giant Schneider Electric to develop a large-scale industrial production cluster at the Port of Dunkirk. The cluster will include two facilities, with a SoftBank-operated site to manufacture enclosures, and a Schneider site to integrate data center power modules. Olivier Blum, CEO of Schneider Electric, said: “The challenge of AI is to deliver both speed and energy efficiency at scale — and Schneider Electric’s role is to enable and accelerate this transformation as the energy technology partner. “By connecting energy and AI, we provide the electrical and digital backbone that makes high-performance, efficient and sustainable infrastructure possible. Our prefabricated power modules are a key lever to combine speed, scalability and energy optimization. Together with SoftBank, we are proud to contribute to a major investment strengthening France as a leading European hub for next-generation digital infrastructure.” Schneider Electric did not disclose financial terms of the partnership. SoftBank is a major investor in OpenAI, as well as the company’s Stargate data center program. It has separately pitched a 10GW data center at a former DOE nuclear enrichment site in Ohio. The company, which has over $130bn in debt, secured a $40bn bridge loan in March to fund its latest OpenAI investment. However, the company has a number of other planned investments – including $16bn in Stargate, and $9bn for the acquisitions of ABB Robotics and DigitalBridge, according to analysts from TD Cowen – leading to doubts about how it will fund its AI expansion plans. SoftBank expects to go public with a robotics data center construction business, Roze AI, with a target valuation of $100bn.