SoftBank has announced a major investment in artificial intelligence infrastructure by acquiring Sharp’s former LCD panel plant in Sakai, Osaka, for approximately $676 million. The facility will be transformed into a large-scale AI data center, developed in collaboration with OpenAI, marking a significant step in Japan’s AI ecosystem.
A Major Shift from Manufacturing to AI
Originally built for LCD panel production, the Sharp plant will undergo a complete transformation into a high-performance AI computing hub. The facility will start with a 150-megawatt power capacity, making it one of the largest AI data centers in Japan. Future expansion plans aim to increase capacity beyond 250 megawatts, allowing it to support growing AI workloads across industries.
SoftBank and OpenAI’s Strategic AI Partnership
SoftBank’s collaboration with OpenAI includes the joint development of enterprise-focused AI solutions, leveraging OpenAI’s models to create AI agents tailored for businesses. The initiative will focus on:
- Custom AI models designed for corporate clients, integrating OpenAI’s technology with industry-specific data.
- Automation of business processes, including customer service, marketing, and human resource management.
- Scalability for enterprises, allowing businesses to use AI tools that can adapt and improve based on real-world interactions.
SoftBank has already launched SB OpenAI Japan, a venture dedicated to bringing OpenAI’s innovations to Japan while ensuring compliance with local data sovereignty laws.
Positioning Japan as a Key AI Player
The transformation of this facility represents a major push to strengthen Japan’s AI infrastructure. The new data center will:
- Increase local AI computing capacity, reducing reliance on overseas cloud services.
- Encourage AI adoption in research and business sectors, offering computing resources to universities, corporations, and startups.
- Support Japan’s digital transformation, allowing domestic industries to integrate AI-driven automation and analytics into their operations.
SoftBank plans to invest up to $6.77 billion in this project over time, ensuring that the facility remains at the cutting edge of AI computing.
A Global AI Race and Data Sovereignty Concerns
With increasing concerns over data sovereignty and AI regulation, many countries are focusing on developing domestic AI capabilities rather than relying on foreign cloud services. SoftBank’s AI data center will serve as a localized alternative for businesses and institutions that require AI processing with strong data privacy protections.
This move also positions SoftBank as a direct competitor to global cloud providers, offering AI infrastructure that aligns with Japan’s regulatory frameworks and economic goals.
What This Means for the Future of AI in Japan
- AI-driven enterprises in Japan will have access to dedicated infrastructure tailored to their needs.
- More AI innovation is expected as startups and researchers gain access to computing power.
- OpenAI’s expansion into Japan could lead to further collaborations and AI-driven advancements.
With the plant set to become operational by 2026, this initiative is poised to reshape Japan’s role in AI development and accelerate the adoption of AI solutions across industries.
