SoftBank Corp. plans to convert Sharp Corp.’s dormant LCD panel factory in Osaka into a major data center, marking the Japanese tech giant’s latest push into artificial intelligence infrastructure, Nikkei reported. The 100 billion yen ($636 million) deal covers 60% of the Sakai facility site.
The acquisition, approved by both companies’ boards, positions SoftBank to develop one of Japan’s largest data centers, with initial power requirements of 150 megawatts, scaling up to 250 megawatts. The facility will be equipped with Nvidia’s next-generation B200 AI chipsets, though the total investment including GPU procurement could reach several hundred billion yen.
Sharp’s decision to offload the mothballed TV panel plant comes as global tech firms intensify their data center investments in Japan. Amazon Web Services, Microsoft, and Oracle have all announced expansion plans in the region.
Construction is set to begin in the upcoming fiscal year starting April, with operations targeted for 2026. The deal, which includes the land, manufacturing plant, and associated power and cooling systems, awaits final confirmation of sufficient long-term power supply before formal agreement signing in March.
The move reflects growing competition in Japan’s data center sector as companies race to build AI computing capacity. SoftBank’s investment follows the broader industry trend of repurposing industrial sites for data center operations.
