SoftBank says it will invest up to €75 billion to build French data centers

SoftBank Group has announced plans to invest up to €75 billion in the construction of additional data center capacity in France, aiming to develop up to 5 gigawatts of new infrastructure. The Japanese conglomerate, known for its aggressive expansion in technology and telecoms, said the initiative is part of a broader strategy to meet surging global demand for cloud computing, AI, and digital services. The investment underscores France’s growing appeal as a prime location for data center development in Europe, driven by its reliable energy supply, robust regulatory environment, and strategic position within the EU’s digital sovereignty agenda. SoftBank’s announcement follows a pattern of major tech firms and investment groups targeting Europe to reduce reliance on Asian and American data hubs amid geopolitical and supply chain concerns.

The move carries significant implications for France’s digital infrastructure landscape and its role in Europe’s technological future. Data centers are now critical to national competitiveness, supporting everything from AI training to sovereign cloud services and secure government operations. France has already seen substantial investment in recent years, with companies like Equinix, OVHcloud, and Data4 expanding operations. SoftBank’s entry signals further consolidation of France—alongside Ireland, Germany, and the Netherlands—as a preferred destination for hyperscale data center deployment. This development also aligns with the European Commission’s Digital Decade targets, which aim for data sovereignty and reduced dependency on non-EU cloud providers.

Recent months have seen a flurry of activity in Europe’s data center market. In February 2024, Amazon Web Services (AWS) committed €15 billion to expand its cloud infrastructure across Spain and Italy, while Microsoft announced a €4 billion investment in German data centers. These announcements reflect a broader regional trend: as AI adoption accelerates, demand for high-performance computing and low-latency connectivity is outpacing supply. France, in particular, benefits from a stable power grid with a growing share of nuclear and renewable energy, reducing the carbon footprint of massive data centers—a key factor for ESG-conscious investors.

SoftBank’s investment, expected to unfold over several years, will involve partnerships with local energy providers and technology firms to ensure sustainable and efficient operations. The company has not yet disclosed specific project timelines or locations, though potential regions include Paris, Lyon, and Marseille, where land availability and fiber connectivity are strong. As Europe races to build digital resilience, SoftBank’s commitment sends a clear signal: the continent is no longer a secondary market but a strategic front in the global data economy.