SoftBank's Strategic Pivot: Building a Power-Hungry AI Fortress in Ohio

SoftBank plans a 10-gigawatt AI data campus in Ohio, a key part of its $550B US investment. It will generate its own power to bypass grid constraints.

In a move that signals a profound strategic evolution, Japanese technology investor SoftBank has unveiled plans to construct what could become the world's largest artificial intelligence data campus. The colossal facility, announced this Friday, is slated for the U.S. state of Ohio and is projected to feature a staggering 10-gigawatt power capacity.

A $550 Billion U.S. Commitment Takes Physical Shape

This project represents a tangible component of SoftBank's broader pledge to invest $550 billion across the United States. CEO Masayoshi Son has framed the long-term potential of the Ohio endeavor as a $500 billion infrastructure undertaking, marking a significant shift for the firm from a pure financial investor to a builder of physical AI infrastructure.

The timing of the announcement aligns with new U.S. federal legislation. The White House released a package of AI-focused rules today designed to streamline permitting for energy-intensive data centers. The regulations specifically favor facilities that generate their own power—a model SoftBank is adopting. This approach allows the company to bypass constraints on the public grid and insulate itself from regulatory pressure related to rising electricity costs for consumers.

From Uranium Enrichment to AI Computation

The campus will rise on a 1,500-hectare site in Pike County, a location with a notable industrial past as a former uranium enrichment plant. SoftBank's partners on the venture include the U.S. Department of Energy and utility provider AEP Ohio.

To meet the enormous power demand, SoftBank plans to largely generate its own electricity. A dedicated $33.3 billion energy park, developed with partners, aims to supply 9.2 gigawatts from gas-fired power plants—a capacity comparable to nine nuclear reactors. An additional $4.2 billion will be invested by SoftBank's renewable energy subsidiary, SB Energy, for grid connection and expansion.

The full power supply from the gas plants is targeted for 2029, with construction set to begin later this year.

Phased Rollout and Market Context

The first phase of development, with an 800-megawatt capacity, is scheduled for completion by early 2028. The estimated cost for this initial stage, which includes specialized AI chips, ranges between $30 and $40 billion.

The viability of SoftBank's new infrastructure-centric model will be closely watched by markets. Analysts point to upcoming events, such as the Arm Holdings product event on March 24th, for further signals. Currently, BofA Securities maintains a "Neutral" rating on SoftBank's stock.