SoftBank Acquires $676M Sharp Factory for AI Data Center in Japan

SoftBank is advancing its goal to establish a major AI hub in Japan, both independently and through partnerships like OpenAI. The tech giant confirmed on Friday it will invest $676 million to acquire a former Sharp LCD panel factory, transforming it into an AI data center.

SoftBank’s deal with Sharp includes the land and buildings of the Sakai Plant in Osaka, purchased for 100 billion yen ($676 million).

This acquisition is a critical step for SoftBank, as data centers are essential for the generative AI revolution, requiring significant capacity to train models and support ongoing services.

When asked if the site will support efforts to commercialize OpenAI’s models in Japan, a SoftBank spokesperson referred TechCrunch to a prior announcement about a collaboration with OpenAI to launch an advanced enterprise AI, “Cristal Intelligence,” in Japan. OpenAI declined to comment on the development.

OpenAI reportedly plans to introduce its foundational AI models to Japan, using GPUs at the Sakai plant to develop models. SB OpenAI Japan, a joint venture between SoftBank and OpenAI, will train models with client data from marketing and other activities, then offer tailored AI agents to clients, according to Nikkei.

The data center initiative highlights the expanding partnership between SoftBank and OpenAI.

The companies announced their joint venture in Japan after OpenAI’s collaborations with SoftBank, Oracle, and others to develop multiple AI data centers in the U.S. SoftBank, a major Japanese telecom, is also investing in OpenAI, with reports suggesting a potential $25 billion investment at a $300 billion valuation, though the deal remains unconfirmed.

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SoftBank’s acquisition of the plant follows a memorandum of understanding signed about 10 months ago to build a large AI data center at a former Sharp LCD panel facility.

SoftBank plans to begin operations in 2026, expecting the Sakai factory’s power capacity to support the AI data center, starting at 150 megawatts and scaling to over 240 megawatts.

The Sakai facility will mark SoftBank’s third data center, alongside an existing one in Tokyo and another under construction in Hokkaido.