- SoftBank purchased the former Sharp LCD factory in Osaka for $676 million to create an AI data center.
- The facility will support SB OpenAI Japan's joint venture to develop and deploy "Cristal Intelligence".
- Operations are scheduled to begin in 2026 with power capacity scaling from 150MW to over 240MW
SoftBank has confirmed the acquisition of Sharp's former LCD panel manufacturing facility in Osaka, Japan for 100 billion yen ($676 million).
The tech giant plans to transform the Sakai Plant into a cutting-edge artificial intelligence data center, supporting its growing collaboration with OpenAI.
The purchase agreement includes both land and buildings at the Osaka site, representing a crucial step in SoftBank's AI strategy.
Data centers are fundamental infrastructure for the generative AI revolution, providing the necessary capacity for both model training and service deployment.
When questioned about the site's connection to OpenAI, a SoftBank spokesperson referenced their previously announced collaboration to deploy "Cristal Intelligence," an advanced enterprise AI solution for the Japanese market. OpenAI declined to comment.
According to Nikkei reports, the joint venture, SB OpenAI Japan, will leverage GPU resources at the Sakai plant to train AI models using client data from various business activities before selling customized AI agents to those clients.
This development broadens the scope of cooperation between SoftBank and OpenAI, following their collaborations on multiple AI data centers in the United States.
SoftBank is also reportedly investing up to $25 billion in OpenAI at a valuation approaching $300 billion, though this deal remains unannounced.
SoftBank aims to begin operations at the facility in 2026. The converted factory will initially operate at approximately 150 megawatts, eventually scaling to over 240 megawatts, making it SoftBank's third data center alongside existing facilities in Tokyo and Hokkaido.
Edited By Annette George
