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SoftBank and OpenAI to Build AI Data Center in Japan

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SoftBank is set to transform a former Sharp LCD panel plant in Osaka, Japan, into a state-of-the-art AI data center in collaboration with OpenAI, the U.S.-based creator of ChatGPT, according to a Nikkei report. The project, expected to cost around 100 billion yen ($677 million), will repurpose the closed factory and surrounding land for cutting-edge AI operations.

The new data center is slated to begin operations in 2026 and will become one of Japan’s largest facilities, with an impressive power capacity of 150 megawatts. This venture aims to commercialize OpenAI’s advanced AI agent model in Japan, allowing for the training of the model using client companies’ data and providing customized AI agents for specific needs.

The total investment in the project could reach as high as 1 trillion yen ($6.77 billion), signaling the significant scale and ambition behind the partnership. The collaboration reflects SoftBank’s ongoing commitment to leading in the AI space and OpenAI’s growing influence in the global AI landscape.

Neither SoftBank nor OpenAI has responded to requests for comment from Reuters at the time of the report.

ESR and CloudHQ Partner for $2 Billion Data Centre Campus in Japan

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ESR Group, a Hong Kong-based real estate manager, has announced a partnership with U.S.-based data centre provider CloudHQ to co-develop and operate a $2 billion data centre campus in Osaka, Japan. The facility will be built in three phases, with the first phase set to be operational by June 2025, delivering 25 megawatts (MW) of capacity.

This collaboration comes at a time when the growing demand for artificial intelligence (AI) is fueling a global surge in data centre investments, with real estate managers, private equity firms, and global investors racing to meet this demand. The new campus in Nanko Kita, Osaka, is expected to offer a total of 130 MW of data centre capacity upon completion.

ESR views this joint venture as a significant step in its broader strategy to expand and enhance its data centre capabilities. According to Diarmid Massey, CEO of ESR Data Centres, the company remains confident in the long-term growth potential of the data centre market in Japan and across the Asia-Pacific region.