SoftBank plans €75 billion investment in French AI data centres

Japanese investment giant SoftBank has announced plans to invest up to €75 billion (around $87 billion) to build and expand artificial intelligence-focused data centres in France, marking what the company describes as its largest AI infrastructure investment in Europe. The project is aimed at supporting the growing demand for AI computing power, which has surged as businesses and governments increasingly adopt artificial intelligence technologies. The investment also strengthens France's position as one of Europe's key destinations for AI development and digital infrastructure.

What is SoftBank planning to build?

According to SoftBank, the investment will support the development and operation of up to 5 gigawatts of additional data centre capacity across France. The first phase of the project will focus on three locations in northern France Dunkirk (Loon-Plage), Bosquel and Bouchain. Together, these facilities are expected to deliver 3.1 gigawatts of data centre capacity to the Hauts-de-France region by 2031.

Data centres are critical facilities that house the servers and computing infrastructure needed to run cloud services, artificial intelligence models and digital applications. As AI systems become more advanced, demand for these facilities has increased significantly around the world.

Why is AI driving demand for data centres?

Artificial intelligence models require vast amounts of computing power to train and operate. Companies developing advanced AI systems often need thousands of specialised chips working together inside large-scale data centres. As AI adoption expands across industries, the need for computing infrastructure continues to grow. SoftBank is both an investor in and a customer of OpenAI, giving the company direct exposure to the increasing demand for AI-related computing resources. Industry analysts say the AI boom is creating a global race to build more data centres, secure electricity supplies and increase computing capacity.

Why France is attracting investment

The announcement is being viewed as a major win for France's technology ambitions. French officials have been actively promoting the country as a centre for AI development, digital infrastructure and advanced technology investment. French economic minister Roland Lescure said the investment reflects President Emmanuel Macron's efforts to position France as a leading destination across the AI value chain. France has increasingly attracted technology investments due to its energy infrastructure, strategic location within Europe and government support for innovation and digital transformation.

Growing concerns around data centre expansion

While demand for AI infrastructure continues to grow, large-scale data centre projects have also sparked debate in several countries. In the United States, some communities have raised concerns about the environmental impact of data centres, including electricity consumption, water usage and pressure on local power grids.

Critics argue that rapidly expanding AI infrastructure could increase energy demand and potentially affect electricity prices in some regions. Supporters, however, say data centres are essential for economic growth, technological innovation and maintaining competitiveness in the global AI race.

SoftBank's broader AI strategy

The French investment is part of SoftBank's wider push into artificial intelligence infrastructure. The company has been increasing its exposure to AI through investments, partnerships and large-scale infrastructure projects. Earlier, SoftBank announced plans to build a major data centre in Ohio in the United States, supported by a new 9.2-gigawatt natural gas power plant.

Analysts believe the company sees AI infrastructure as one of the most important long-term growth opportunities in the technology sector. By investing heavily in data centres, SoftBank is positioning itself to benefit from rising demand for AI computing capacity from businesses, governments and technology companies.