SoftBank has promised up to €75bn to build a massive AI computing cluster network in France, aiming to create Europe’s largest AI data centre project.
According to the Financial Times, the investment comes as the region scrambles to catch up with the US and China in AI infrastructure, boosting Emmanuel Macron ahead of his Choose France event next week.
The deal reportedly followed a dinner in Tokyo between Macron and SoftBank founder and chief executive Masayoshi Son, where France’s nuclear power and fast-tracked approvals were pitched as incentives.
Son said: “SoftBank is proud to make this major commitment to France. With its industrial capabilities, talent base and national ambition, France is uniquely positioned to become a leading AI infrastructure hub in Europe.”
Europe lags behind in building data centres needed to meet the soaring demand for AI computing power, with investment favouring regions with cheaper energy, faster grid connections and lighter regulation. SoftBank’s plan will initially invest €45bn to build 3.1GW of capacity in Hauts-de-France by 2031, with an additional 2GW to follow.
One facility in Dunkirk will see SoftBank partner with Schneider Electric, creating a hub for AI infrastructure and robotics manufacturing, well placed to serve London, Brussels and Amsterdam. If completed, the 5GW complex would equal five nuclear power stations or New York City’s peak electricity demand, pushing SoftBank’s total investment to €75bn ($87bn).
The French project is part of SoftBank’s global AI push, including a 10GW data centre project in Ohio announced in March, with investment exceeding $60bn in OpenAI and plans for US robotics and energy IPOs. Son’s data centre ambitions have partially replaced the $500bn Stargate project, originally meant to supply compute exclusively for OpenAI.
Industry estimates suggest each 1GW of AI infrastructure costs about $50bn, including land, construction, power and IT, meaning SoftBank will need significant additional financing from partners. Typically, SoftBank would provide a small initial equity portion, with most capital raised through debt-based project financing.
Alongside the US and France, SoftBank is in a consortium planning 5GW of AI infrastructure in Abu Dhabi with G42, OpenAI, Oracle, Nvidia and Cisco. The ultimate users and suppliers of computing equipment for the French site are not yet confirmed.
Many tech projects touted by executives and politicians have yet to materialise, including a UK OpenAI facility put on indefinite hold despite government fanfare. Macron, in office since 2017, has actively courted industrial investment, emphasising AI and low-carbon nuclear power to entice investors.
Choose France this year comes less than a year before a tense presidential election, with the far right polling ahead and Macron unable to stand again.
SoftBank’s French AI investment is the largest outside the US for Son’s group and signals Europe’s growing importance in the global AI race. The commitment positions France as a future AI hub while tackling regulatory and energy challenges other European countries have struggled with.
