SoftBank Leads Major U.S.-Japan Alliance to Power AI Revolution

SoftBank forms a U.S.-Japan consortium to build a massive AI data center and power plant in Ohio, marking a strategic pivot where AI now drives over 60% of its value.

SoftBank Group Corp. has formally launched a new coalition, bringing together 21 Japanese and American corporations to spearhead one of the world's most ambitious artificial intelligence infrastructure initiatives. Dubbed the "Portsmouth Consortium," the group will be spearheaded by SoftBank, which will act as its secretariat and driving force.

A Strategic Pivot Toward Artificial Intelligence

This move aligns with a profound strategic shift within the conglomerate. Investments related to artificial intelligence now account for more than 60% of SoftBank's net asset value, a dramatic increase from just 18% three years ago. This portfolio is heavily weighted by its stake in chip designer Arm and a total investment of $34.6 billion in OpenAI, where SoftBank currently holds an approximate 11% interest.

The company's financial results underscore this focus. For the first nine months of the current fiscal year, SoftBank reported a net profit of 3.17 trillion yen, propelled primarily by gains from its AI-focused investment holdings.

Building an AI Powerhouse in Ohio

The consortium's flagship project is the development of a massive, integrated energy and computing campus in Piketon, Ohio, on a former Department of Energy site. The centerpiece will be a 9.2-gigawatt gas-fired power plant directly coupled to a ten-gigawatt AI data center. To contextualize the scale, one gigawatt can power approximately one million homes, meaning the planned facility's output is comparable to nine nuclear power plants.

The initial construction phase, slated for completion by early 2028, aims to deliver roughly 800 megawatts of capacity. This stage alone carries an estimated price tag of $30 to $40 billion. SoftBank's Chief Executive, Masayoshi Son, has projected the total investment for the entire campus could reach up to $500 billion.

This venture is a key component of a broader U.S.-Japan trade and investment pact, which envisions total investments exceeding $550 billion in the United States. Japan's contribution to this wider agreement is approximately $33.3 billion. Consortium members include a roster of industrial and financial giants such as Hitachi, Mitsubishi Electric, Panasonic, Mizuho Bank, MUFG, Goldman Sachs, and J.P. Morgan, alongside SoftBank.

Navigating Market Headwinds

Despite strong profits, SoftBank faces market challenges. Credit rating agency S&P recently adjusted its outlook on the conglomerate's credit. Furthermore, the U.S. initial public offering of its subsidiary, PayPay, was priced at the lower end of its targeted range, a signal interpreted by analysts as reflecting ongoing volatility within the technology sector.

All eyes are now on the Ohio project's next major milestone: delivering the promised 800 megawatts of capacity by early 2028. Achieving this will be the first true test of the consortium's ability to execute on its highly ambitious timeline.