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SoftBank launches AI cloud venture, eyes 10GW U.S. data center by 2030

Japan Times Tech3h ago3 min read
SoftBank launches AI cloud venture, eyes 10GW U.S. data center by 2030

Key takeaway

SoftBank is launching a new AI cloud venture called SB Neo that will rent computing resources to U.S. companies starting next fiscal year, with plans to operate 10 gigawatts of data center capacity by around 2030. The business could substantially increase SoftBank's operating income and reflects the billionaire Masayoshi Son's strategic pivot toward AI hardware and data center infrastructure to capitalize on soaring demand for AI computing power.

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3 Key Points

  • What happened

    SoftBank Group and its telecom unit are establishing SB Neo this month, a new venture that will start renting AI computing resources to U.S. companies next fiscal year. The venture plans to ramp up capacity to supply 10 gigawatts of data center power by around 2030 for large-scale AI model training and inference.

  • Why it matters

    The neocloud business has potential to triple or quadruple SoftBank's annual operating income to ¥3 trillion to ¥4 trillion ($18.5 billion(約3兆円) to $25 billion(約4兆円)), according to people familiar with the company's plans. For context, SoftBank's parent company has committed to investing about $65 billion(約10兆円) in OpenAI by October, signaling confidence in AI infrastructure demand.

  • What to watch

    SoftBank is building a $500 billion(約80兆円) data center project in Ohio with 10GW capacity, among the largest in the world. The company also has domestic data center campuses under construction in Hokkaido and Sakai, Osaka Prefecture. SoftBank says it has a competitive edge in securing power sources from gas-fired plants.

FAQ

When will SoftBank start offering these AI cloud services?
SoftBank will start renting AI computing resources to U.S. companies next fiscal year. The new venture, SB Neo, is being set up this month.
How much computing capacity does SoftBank plan to build?
SoftBank plans to ramp up its computing resources to supply 10 gigawatts of data center capacity by around 2030. The company is also envisaging a $500 billion(約80兆円) data center project in Ohio with 10GW capacity.
Who owns the new AI cloud venture?
SB Neo is 51% owned by SoftBank's mobile carrier unit and 49% owned by SoftBank Group, its parent company.

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