SoftBank to Invest Up to $87 Billion in AI Data Centers in France

Japanese conglomerate SoftBank has announced Europe’s largest investment in artificial intelligence infrastructure. The company plans to invest up to €75 billion ($87 billion) to build five gigawatts of data center capacity in France. The first phase of the €45 billion ($52 billion) project will launch three sites in the Île-de-France region with a total capacity of 3.1 GW by 2031.

A key factor in choosing France was its energy infrastructure. The country generates about 70% of its electricity from nuclear power plants operated by EDF and is the world’s largest net exporter of electricity. Industrial electricity rates here are more than twice as low as those in the UK. SoftBank CEO Masayoshi Son highlighted that access to an existing low-carbon grid was a decisive advantage.

The project includes the reconstruction of a former power plant in Bouchain, which EDF will transfer to SoftBank for redevelopment. An industrial cluster is planned at the port of Dunkirk, featuring factories for producing data center enclosures and integrating energy modules. The partnership with Schneider Electric will allow SoftBank to expand vertical integration, adding production of ready-made energy solutions to its existing assets (Arm, robotics, and proprietary data center batteries).

Unlike its plans in the U.S., where SoftBank must build a $33 billion gas-fired power plant to support a 10-GW data center in Ohio, the company can connect to France’s existing grid. This avoids issues with overloaded energy systems and local resistance that hinder infrastructure development in the U.S.

The investment in France complements SoftBank’s global expansion, which includes over $30 billion in OpenAI and a debt load exceeding $130 billion. The €75 billion figure is a maximum target, with SoftBank initially committing only €45 billion and 3.1 GW of capacity.