Investing 75 Billion Euros. SoftBank Builds Europe’s Largest AI Cluster in France, Masayoshi Son’s Global Layout Places Another Key Piece

TradingKey - On May 31, SoftBank Group announced that it will invest up to ‐75 billion (approximately RMB 592 billion) in France to build a large-scale AI computing cluster network. This project will become Europe’s largest data center undertaking to date and represents SoftBank's largest single AI investment outside the United States.

The finalization of this blockbuster investment agreement aligns perfectly with French President Emmanuel Macron’s upcoming "Choose France" annual investment summit next week, undoubtedly injecting strong momentum into the event, which draws global corporate attention.

According to sources familiar with the matter, Macron and SoftBank founder Masayoshi Son reached a preliminary agreement on the cooperation during a dinner in Tokyo in early April this year.

In a media interview, Masayoshi Son clearly expressed his bullish outlook on the French market: "SoftBank is very proud to make this major commitment to France. With its deep industrial base, high-quality talent pool, and firm national determination to drive AI development, France possesses the unique conditions to become the core hub of European AI infrastructure."

According to the plan, SoftBank will implement the project in phases, with an initial investment of ‐45 billion to build 3.1 gigawatts (GW) of computing capacity in the Hauts-de-France region of northern France by 2031, covering Dunkirk, Bosquel, and Bouchain. An additional 2 GW of capacity will be expanded later based on market demand, bringing the total investment to ‐75 billion.

The core campus located in Dunkirk will also collaborate with French engineering giant Schneider Electric to create an industrial cluster integrating AI infrastructure R&D and robotics manufacturing, further refining the layout of the European AI value chain.

Notably, the energy demand for this project is massive—once the total 5 GW of computing capacity is fully operational, its annual electricity consumption will be equivalent to the output of five standard nuclear power plants, approaching the peak power usage level of New York City. France's abundant nuclear energy supply is the key foundation supporting this project.

Furthermore, the project’s location in Dunkirk offers a unique geographical advantage, providing convenient reach to core European city markets such as London, Brussels, and Amsterdam.

SoftBank Accelerates Global Computing Power Deployment

As the AI industry enters a period of explosive growth, SoftBank is accelerating its global expansion, with the French project serving as a critical link in the build-out of its AI infrastructure network.

In March this year, SoftBank announced it would launch a 10GW data center project in Ohio, U.S. It is also participating in a multinational consortium with plans to collaborate with G42, OpenAI, Oracle ( ORCL ), NVIDIA ( NVDA ), and Cisco ( CSCO) and other companies to co-build a 5GW AI computing cluster in Abu Dhabi.

Within its broader AI strategic roadmap, SoftBank has not only committed over $60 billion in investment to ChatGPT developer OpenAI, but is also advancing U.S. listing plans for its robotics and energy businesses, while continuously expanding semiconductor capacity centered around its core asset, Arm.

Notably, SoftBank's data center rollout has partially replaced the previously planned $50 billion "Stargate" joint venture, which was originally intended to provide exclusive large-scale computing support for OpenAI.

As the demand for computing power from AI companies surges, SoftBank is attempting to expand its AI-related revenue streams and reduce reliance on single projects by establishing data center hubs in major global regions.

For French President Emmanuel Macron, the political significance of this investment is equally important. With less than a year until the French presidential election and the far-right leading in the polls—while Macron himself is legally barred from running again—the "Choose France" summit has become a key stage for him to showcase his pro-business achievements.

Since taking office in 2017, Macron has consistently pursued pro-business policies to attract foreign investment. In recent years, he has shifted the focus of the "Choose France" initiative toward the AI sector, with France's low-carbon nuclear power resources serving as a core selling point for investors.

However, despite Big Tech groups announcing hundreds of billions of dollars in AI capacity expansion plans, not all projects will materialize as scheduled. A previous flagship project by OpenAI to build facilities in Northeast England, which once received strong support from the UK government, has now been shelved indefinitely.

From a global perspective, Europe still lags significantly behind the U.S., China, and the Middle East in building large-scale data centers to meet AI computing demands, as investment tends to flow to regions with lower energy costs, faster grid access, and more relaxed regulations.