SoftBank to build $677 million AI data center with OpenAI for Japanese market

SoftBank‘s plan to transform a former Sharp LCD plant into a massive AI data center marks a significant step in Japan‘s AI infrastructure development. The $677 million acquisition of the Osaka facility represents a strategic collaboration with OpenAI to commercialize AI agents specifically for the Japanese market, potentially triggering a new wave of localized AI deployment and customization in Asia’s advanced economies.

The big picture: SoftBank intends to convert Sharp’s closed TV LCD factory in Osaka into one of Japan’s largest data centers through a ¥100 billion ($677 million) investment, according to a Nikkei report.

• The facility will power AI agents developed in partnership with OpenAI, creating a significant new hub for AI operations in Japan.
• The data center is scheduled to begin operations in 2026 with a substantial power capacity of 150 megawatts.

Why this matters: The partnership aims to commercialize OpenAI’s AI agent model specifically for the Japanese market, creating customized AI services for local businesses.

• The collaboration will train AI models on client companies’ data to deliver tailored AI agents, potentially accelerating enterprise AI adoption across Japan.
• This represents one of the most significant physical infrastructure investments for AI deployment in Japan to date.

Behind the numbers: The total investment could approach ¥1 trillion ($6.77 billion), signifying SoftBank’s substantial commitment to establishing AI infrastructure.

• This massive financial commitment reflects the growing recognition that advanced AI systems require specialized physical infrastructure and considerable power resources.
• The 150-megawatt power capacity highlights the energy-intensive nature of running sophisticated AI systems at scale.

Where we go from here: Neither SoftBank nor OpenAI immediately responded to Reuters‘ request for comment on the reported plans.

• If confirmed, this partnership could establish a new model for localized AI infrastructure development that could be replicated in other markets.
• The 2026 operational timeline suggests a multi-year buildout process for the specialized facility.