SoftBank and OpenAI Launch AI Data Center Project at Former Sharp Facility

Strategic Partnership to Boost Japan's AI Infrastructure

SoftBank Corp, a leading Japanese telecommunications giant, has partnered with OpenAI, the renowned artificial intelligence research organization, to transform a former Sharp LCD panel plant in Sakai, Osaka, into a cutting-edge AI data center. This ambitious project, reported by Nikkei and detailed across various sources, marks a significant step in advancing AI infrastructure in Japan, leveraging the repurposed industrial site to meet the growing demand for artificial intelligence solutions. The initiative reflects SoftBank's strategic vision to position Japan as a global leader in AI technology, while OpenAI brings its expertise in developing advanced AI models to the collaboration. With an estimated purchase price of $676 million for the facility and a potential total investment nearing $7 billion, this venture underscores the scale and importance of the undertaking for both companies and the Japanese tech ecosystem.

The Sakai site, once part of Sharp's Green Front Sakai complex, ceased LCD panel production in September 2024 due to intense competition from Chinese manufacturers, leaving a vast industrial space ripe for redevelopment. SoftBank identified this location as an ideal candidate for an AI data center, citing its ability to generate sufficient electricity for long-term operations and its expansive area, which could span between 440,000 and 1.27 million square meters depending on the portion acquired. This repurposing effort aligns with Japan's increasing focus on sustainable industrial transformation and technological innovation. The data center, expected to boast a power capacity of 150 megawatts, is slated to commence operations in 2026, making it one of the largest facilities of its kind in the country. This timeline positions the project as a critical component in meeting the projected growth of Japan's AI market, forecasted to reach $13 billion by 2030, driven by demand for enterprise AI solutions and advanced computing infrastructure.

At the heart of this collaboration lies the development and commercialization of AI agents, sophisticated software models designed to perform tasks autonomously for businesses. SoftBank and OpenAI plan to jointly create these AI agents, training them on data provided by Japanese client companies to deliver tailored solutions that enhance operational efficiency and innovation. This initiative builds on SoftBank's earlier announcement in February 2025 of a joint venture with OpenAI to develop "Cristal Intelligence," an advanced enterprise AI service, backed by an annual $3 billion investment from SoftBank to deploy OpenAI's technology across Japan. The Sakai data center will serve as a pivotal hub for these efforts, enabling the processing and storage of vast datasets required to power such AI applications. By focusing on customized AI agents for the Japanese market, the partnership aims to address specific industry needs, from manufacturing to customer service, positioning SoftBank as a key player in the AI-driven digital transformation of Japanese businesses.

Financially, the project represents a substantial commitment, with SoftBank expected to sign a contract as early as Friday following the Nikkei report, securing the former Sharp facility for approximately 100 billion yen ($676 million). The total investment, potentially reaching 1 trillion yen ($6.77 billion), reflects the high stakes and long-term vision of establishing a world-class AI data center in Osaka. This figure aligns with SoftBank's broader AI strategy, which includes partnerships with global tech leaders like Nvidia for advanced chip technology and Oracle for large-scale data center projects, such as the $500 billion Stargate Project in the US. However, the Sakai facility is uniquely tailored to Japan's domestic needs, leveraging local infrastructure and expertise. The project's scale has also prompted SoftBank and OpenAI to call on 500 Japanese firms to contribute to building a nationwide AI network, fostering a collaborative ecosystem that amplifies the data center's impact.

Beyond its financial and technical aspects, the Sakai AI data center project carries significant strategic implications for Japan's technological landscape. The facility's 150-megawatt capacity will support the intensive computational requirements of AI training and deployment, addressing a critical bottleneck in Japan's current infrastructure: access to high-performance computing resources. This development comes at a time when global demand for AI data centers is surging, driven by the proliferation of generative AI tools and machine learning applications. By repurposing the Sharp plant, SoftBank not only revitalizes an underutilized industrial asset but also contributes to Japan's economic resilience, creating opportunities for job growth and technological advancement in the Osaka region. The site's historical significance as a hub for LCD and solar cell production further enhances its suitability, with existing power generation capabilities potentially reducing the need for extensive new energy investments.

The partnership between SoftBank CEO Masayoshi Son and OpenAI CEO Sam Altman underscores a shared commitment to accelerating AI adoption in Japan. Their collaboration builds on months of planning, including a Memorandum of Understanding signed with Sharp in January 2025, and public engagements in February 2025 to promote AI for Japanese businesses. This project also complements SoftBank's global AI ambitions, yet it stands out for its focus on local customization and scalability. As the data center takes shape, it promises to deliver cutting-edge AI solutions that empower Japanese companies to compete on a global stage, while reinforcing SoftBank's role as a pioneer in the intersection of telecommunications and artificial intelligence. With operations set to begin in 2026, the Sakai facility is poised to become a cornerstone of Japan's AI future, driving innovation and economic growth for years to come.