SoftBank Invests €75 Billion in French AI Data Centers, May 31

SoftBank Group announced on May 31 that it will invest up to €75 billion to build artificial intelligence data centers in France, with total capacity reaching 5 gigawatts. The first phase commits €45 billion by 2031 to develop 3.1 gigawatts in northern France. This represents SoftBank’s largest AI infrastructure investment in Europe and signals the company’s strategy to secure computing power outside the United States.

Record Investment Signals AI Infrastructure Race

SoftBank Group will deploy up to €75 billion across France to build 5 gigawatts of AI data center capacity. The first phase allocates €45 billion through 2031 to construct 3.1 gigawatts in the Hauts-de-France region, with sites in Dunkirk, Bosquel, and Bouchain. The company plans additional facilities across France to reinforce the country’s role as a European AI hub. This investment dwarfs most regional data center projects and reflects intense global competition for AI computing infrastructure.

Partnership With Schneider Electric Accelerates Construction

SoftBank partnered with French electrical equipment maker Schneider Electric to expedite the project. The partnership establishes a manufacturing hub in Dunkirk to produce server racks and electrical equipment for the data centers. This approach reduces supply chain delays and localizes production, allowing faster deployment of infrastructure. The collaboration underscores how major tech investments now require integrated supply chain partnerships to scale rapidly.

Why France and Why Now

SoftBank announced the investment at President Emmanuel Macron’s Choose France investment summit on May 30. France offers reliable electricity access, industrial capabilities, and strong talent pools. The move expands SoftBank’s AI infrastructure beyond the United States, where competition for computing capacity intensifies as demand for AI services grows. SoftBank plans $88bn AI data hub in France to secure long-term access to compute resources for AI applications.

Stock Impact and Investor Takeaway

9984.T rose 5.1% to ¥7,491 on May 31, reaching a 52-week high of ¥8,038. Meyka rates the stock B+ with a neutral recommendation, citing strong ROE and ROA but weak debt ratios. The RSI stands at 66.38, signaling overbought conditions. With the stock trading at a PE ratio of 8.58 and a 12-month forecast of ¥10,511, the massive capital commitment to AI infrastructure positions SoftBank as a major player in the emerging AI compute market, though execution risk remains.

Final Thoughts

SoftBank’s €75 billion France investment positions it as a major AI infrastructure provider outside the US. With Meyka rating 9984.T B+ and the stock up 5.1%, investors should monitor execution timelines and competitive pressures in European AI data centers.

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