SoftBank to spend $87B on data centers in France
What's the story
SoftBank Group has announced its plan to invest as much as €75 billion (nearly $87 billion) in expanding data center capacity in France. The investment will be used to develop and operate up to 5GW of additional data center capacity. The first phase of the project includes building facilities in Loon-Plage, Bosquel, and Bouchain, providing 3.1GW of capacity by 2031.
Strategic move
Investment amid US data center pushback
SoftBank's investment in French data centers will be its biggest AI infrastructure project in Europe. The company's decision comes at a time when there is increasing opposition to data center construction in the US over environmental concerns and their impact on the electrical grid and utility prices. Despite this, SoftBank had previously announced plans for a data center in Ohio, powered by a new 9.2GW natural gas plant.
Official endorsement
France government backs SoftBank's investment
The French government has welcomed SoftBank's announcement. Economic Minister Roland Lescure calling it a "testament to President Emmanuel Macron's ambition to position France as a leading destination all along the AI value chain." This endorsement highlights the strategic importance of SoftBank's investment in bolstering France's position in the global AI landscape.