SoftBank Plans €75 Billion AI Infrastructure Investment in France

SoftBank Group Corp. has announced plans to invest as much as €75 billion ($87 billion) to develop artificial intelligence data centers in France [1]. The initiative, which is expected to be formally announced at the upcoming Choose France Summit, marks a significant commitment to building AI infrastructure within the European market [2].

Key takeaways

• The investment aims to reach a total capacity of 5 gigawatts of AI computing power [1].
• An initial phase of €45 billion will fund data centers in Le Bosquel, Dunkirk, and Bouchain, with operations beginning between 2028 and 2031 [1, 3].
• Schneider Electric SE is set to serve as a strategic partner for the projects [1, 2].
• The investment is driven by France’s nuclear-powered electricity grid, which offers a low-carbon energy advantage for data center operations [3].

Strategic expansion into European AI

The investment plan follows direct discussions between SoftBank founder Masayoshi Son and French President Emmanuel Macron, who met in Tokyo earlier this year [1, 2]. Son noted that he was impressed by the French president's personal commitment to the nation's economic success, which prompted him to review the potential for a large-scale investment in France [1]. While SoftBank has historically concentrated its capital in the United States, Japan, and Asia, the company now views France as a critical hub for AI manufacturing and computing power [1].

The project will be executed in phases, with the first €45 billion allocated to constructing facilities that will provide 3.1 gigawatts of capacity [2, 3]. These sites are strategically positioned to serve major European markets, including London, Brussels, and Amsterdam [3]. Beyond the immediate infrastructure, the partnership with Schneider Electric is intended to create a broader hub for robotics manufacturing and AI-related technology [3].

Why it matters

The scale of this commitment aligns with President Macron’s policy of fostering "sovereign AI," an effort to ensure that France and Europe develop the infrastructure necessary to control their own data and technology independently of the United States and China [3]. France’s energy profile is a central component of this strategy; because the country’s grid is approximately 70% nuclear-powered, it provides a stable, low-carbon baseload that is difficult to replicate elsewhere in Europe [3].

This investment comes at a time when SoftBank is aggressively expanding its global AI footprint, including significant stakes in OpenAI and participation in the $500 billion Stargate AI project in the United States [2, 3]. However, the company’s ability to finance these massive, simultaneous commitments remains a point of interest for investors, particularly as SoftBank has previously faced challenges in securing margin loans for its AI-related holdings [3]. While the €75 billion figure represents a major milestone for French industrial policy, the ultimate success of the project will depend on the execution of these large-scale infrastructure plans over the coming decade [3].