SoftBank plans 75 billion euro AI data center buildout in France

SoftBank plans to invest 75 billion euros in a massive AI data center buildout in France, the company announced in a joint statement with the French government. The project, one of the largest single AI infrastructure investments in Europe, aims to support the surging demand for computing power needed to train and run advanced artificial intelligence models. SoftBank will begin construction within five years, with specific sites still under evaluation.

The Plan

SoftBank’s 75-billion-euro commitment will fund multiple hyperscale data centers across France. The company expects the buildout to create thousands of jobs during construction and operation phases. French President Emmanuel Macron welcomed the investment as a major boost for the country’s ambition to become a European AI hub.

The data centers will be designed to host high-performance GPUs and next-generation chips, primarily for AI training workloads. SoftBank said it will prioritize using low-carbon energy sources, including nuclear power, which France produces in abundance.

Key Details: Site Selection and Timeline

SoftBank has not yet disclosed exact locations, but industry sources suggest the company is evaluating sites near Paris, Marseille, and in northern France. The buildout is expected to run in phases, with the first phase completed by 2028. Full operational capacity is targeted for the early 2030s.

The French government will support the project through streamlined permitting and potential tax incentives. SoftBank’s chairman, Masayoshi Son, stated that France’s energy infrastructure and skilled workforce were decisive factors.

Energy and Environmental Considerations

France’s predominantly nuclear electricity grid offers a unique advantage for energy-intensive AI data centers. SoftBank claims the project will operate on 100% renewable or low-carbon energy by 2030. However, environmental groups have raised concerns about water usage and the local ecological impact of such large facilities.

Key warning: AI data centers can consume as much electricity as a small city. France’s nuclear fleet can handle the load, but grid upgrades and cooling systems will require additional investment.

SoftBank said it will deploy liquid cooling technologies to reduce water consumption and improve energy efficiency. The company also committed to using modular construction methods to shorten build times and minimize waste.

Strategic Implications

This investment positions SoftBank as a major player in Europe’s AI infrastructure race, directly competing with Microsoft, Google, and Amazon. France now joins Ireland and the Netherlands as top destinations for hyperscale data center projects. The move also aligns with the EU’s goal to host more AI computing capacity within its borders, reducing reliance on US-based cloud providers.

SoftBank’s French expansion follows similar announcements in the UK and Germany, where the company has committed smaller sums. Analysts note that SoftBank’s total global AI infrastructure spending now exceeds $150 billion, making it one of the largest investors in the sector.

High-value insight: The 75-billion-euro figure dwarfs France’s previous largest tech investment — a 15-billion-euro semiconductor plant announced in 2022.

What Comes Next

SoftBank expects to sign final agreements with the French government within six months. Local communities will be consulted during the environmental impact assessment phase. The company also plans to partner with French universities to train AI engineers and data center technicians.

Construction of the first data center could begin as early as 2025, pending regulatory approvals. SoftBank said it will issue regular progress updates and publish annual sustainability reports for the project.

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