Softbank to invest in AI data centers in France

Softbank Group Corp has announced a €75 billion (US$87.44 billion) investment to construct 5 gigawatts (GW) of AI data center capacity in France, aiming to establish the country as a leading European hub for AI infrastructure. The first phase involves a €45 billion commitment to deliver 3.1GW of capacity in the Hauts-de-France region by 2031, with data centers planned in Dunkirk, Bosquel, and Bouchain. The project reflects personal diplomacy between French President Emmanuel Macron and Softbank founder Masayoshi Son, who discussed the investment during Macron’s visit to Japan earlier this year. Softbank described the initiative as its largest AI infrastructure investment in Europe, emphasizing France’s strategic role in next-generation digital infrastructure. Schneider Electric SE will partner in Dunkirk to create a hub for AI infrastructure and robotics manufacturing, serving customers in London, Brussels, and Amsterdam. Macron and Son are expected to formally announce the investment at the Choose France Summit, an annual event attracting global industry leaders. The French project follows Softbank’s March announcement of a US$500 billion data center initiative in Ohio, targeting 10GW of capacity powered by natural gas. Additionally, Softbank is collaborating with OpenAI, Oracle Corp, and Abu Dhabi’s MGX on a US$500 billion Stargate initiative to deploy data centers across the US, alongside a US$60 billion investment in OpenAI for a 13% stake. These moves align with Son’s global ambitions to secure AI computing bases amid rising demand for AI services. Macron has advocated for countries outside the US and China to develop their own AI infrastructure, promoting sovereign AI and supporting local players like Mistral AI. The French initiative underscores efforts to decentralize AI computing power and ensure national control over data and technology. Softbank’s plans, however, face scrutiny over financing feasibility as AI companies compete for sufficient computing resources.