SoftBank Commits €75 Billion to Build 5GW AI Data Center Network in France

SoftBank committed up to €75 billion to build a network of AI data centers across France, making it the largest single AI infrastructure investment in Europe to date. Phase 1 targets €45 billion for 3.1 gigawatts of compute capacity in the Hauts-de-France region by 2031. The full buildout reaches 5 gigawatts.

Initial construction is planned across three sites: Loon-Plage in Dunkirk, Bosquel, and Bouchain — all in northern France. The location is deliberate. France generates roughly 70% of its electricity from nuclear power, giving SoftBank access to predictable baseload pricing that is structurally harder to secure in Germany, the UK, or the United States, where grid composition and pricing vary far more.

SoftBank’s stock surged 13% to 8,460 yen on June 1 — a historic high — when the investment was formally announced through a direct agreement with the French government. The deal was co-signed by President Emmanuel Macron at the “Choose France” foreign investment summit, giving it political backing that typically accelerates permitting.

The scale becomes clearer in comparative terms. The combined publicly announced data center commitments from all US hyperscalers (Amazon, Microsoft, Google, and Meta) in Europe for 2025 and 2026 amounted to roughly €60 billion. SoftBank alone is pledging more than that figure for a single country within a similar timeframe.

This is CEO Masayoshi Son’s largest individual infrastructure bet since the Vision Fund’s peak years. It marks a strategic shift: own the physical layer — power, land, cooling, and fiber — rather than backing software companies alone. France offers that combination at a scale few European countries can match.

Hauts-de-France’s industrial corridor along the northern coast works in SoftBank’s favor. Former steel mills and mining infrastructure provide brownfield sites with grid connections already in place and industrial-grade water access for cooling. That reduces permitting timelines and construction cost compared to greenfield developments in more suburban markets.

Phase 1 has signed land agreements and committed capital. The broader €75 billion pledge depends on financing conditions and build progress over the coming years. But the physical work begins now. The infrastructure layer of France’s AI ecosystem is being laid this year, and SoftBank is holding the shovel.

Sources

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