SoftBank Group Corp. is intensifying its strategic focus on artificial intelligence by eyeing potential acquisitions of data center assets, as founder and CEO Masayoshi Son seeks to secure more control over the physical infrastructure underpinning the AI boom. The pursuit of major digital infrastructure platforms comes amid robust global demand for compute capacity, which is critical to supporting generative AI workloads and AI models that require intensive processing power.

Strategic Rationale Behind the Data Center Push

SoftBank’s discussions with the private data center operator Switch Inc. and its backer DigitalBridge Group illustrate the company’s desire to own more of the underlying compute infrastructure essential to AI deployments. Acquiring Switch would give SoftBank a portfolio of energy-efficient, large-scale data centers at a time when demand for compute power is accelerating rapidly, driven by growing AI applications across industries. DigitalBridge itself has seen investor optimism rise sharply on the prospect of a deal, reflecting the strategic value of data center assets in an AI-led technology landscape.

Controlling physical infrastructure offers SoftBank a competitive edge beyond software or model development. Data centers act as bottlenecks for AI deployment due to their scale and the cost of building and power provisioning, making ownership of these facilities a coveted asset class within AI supply chains. Discussions have reportedly also included potential purchases of DigitalBridge’s private equity interests, underscoring the scale of SoftBank’s ambitions in this segment.

Integration with Broader AI Initiatives

The data center pursuit is only one thread in SoftBank’s broader AI strategy, which includes partnerships and ventures aimed at embedding AI technologies at multiple levels of business and infrastructure. In Japan, SoftBank and OpenAI launched a joint venture focused on delivering enterprise-grade AI solutions, reflecting a concerted effort to commercialize AI tools domestically while setting a template for global expansion.

Beyond infrastructure ownership, SoftBank has actively pursued internal integration of AI across its business units and made strategic investments in technology companies that support AI development. This holistic approach is designed to position SoftBank not just as a backer of AI innovators but as an operator of the foundational assets and services that power next-generation AI workloads.

Market and Competitive Implications

SoftBank’s moves signal a recognition that AI’s evolution will depend on vast amounts of computing capacity and reliable infrastructure to host increasingly complex AI models. The scramble for data center assets comes as hyperscale players and tech giants alike compete for real estate, power, and connectivity that can support high-density computing. For SoftBank, securing these assets could enhance its ability to negotiate partnerships, attract multinational clients, and exert influence over the economics of AI deployment.

However, the path to acquisition is not guaranteed. Valuations for key targets like Switch have been reported to exceed tens of billions of dollars, and financing such deals would require SoftBank to marshal significant capital—potentially through debt and strategic partnerships.

Looking ahead, investors and industry watchers will be monitoring whether SoftBank can convert its due diligence into definitive deals and how it will integrate new infrastructure with existing AI initiatives. The outcome of these efforts could shape competitive dynamics in the digital infrastructure market and influence how AI workloads are hosted and scaled globally.