SoftBank Group Corp. is examining a possible acquisition of US data center operator Switch Inc., according to people familiar with the discussions.
Marking one of the most significant potential moves yet in Masayoshi Son’s effort to expand the company’s footprint in the accelerating artificial intelligence sector.
The talks underscore the Japanese conglomerate’s intent to secure critical digital infrastructure as demand for AI computing continues to surge.
The potential deal, which remains under evaluation, comes as Switch’s owners seek a valuation of roughly $50 billion including debt.
Some stakeholders have also considered an initial public offering as early as next year, which could value the company at about $60 billion, the people said.
Switch, known for designing and running energy efficient data centers, has emerged as a key player in a sector facing rising global pressure to support AI workloads.
SoftBank has recently intensified its push into AI infrastructure, with Son repeatedly highlighting the need for massive computing capacity to support next generation models.
The company is conducting due diligence on Switch while also holding advanced discussions to acquire DigitalBridge Group Inc., one of Switch’s main backers, Bloomberg earlier reported.
SoftBank shares rose nearly four percent in Tokyo following reports of the talks. “This would be one of SoftBank’s most consequential steps in cementing itself as an AI infrastructure heavyweight,” said Mariko Taneda, a Tokyo based analyst at Asahi Capital Research.
Analysts say the potential acquisition reflects Son’s long term strategy owning the foundational infrastructure behind AI development rather than solely investing in model builders or chip manufacturers.
“Controlling data centers gives SoftBank the leverage it needs in a market where compute availability is becoming as valuable as capital,” said David Ralston, a Las Vegas based data infrastructure consultant.
“If the company buys Switch, it would immediately gain assets that are scarce, expensive and increasingly essential.”
Bloomberg Intelligence noted that SoftBank’s budget for AI infrastructure spending could significantly expand if it secures Switch at the anticipated valuation.
While its initial data center project, known as Stargate, is projected at $500 billion, analysts estimate SoftBank’s actual cash commitment could be closer to $40 billion based on joint venture structures.
“The amount of capital involved is huge, but SoftBank may spend less than initially expected,” said BI analysts Kirk Boodry and Chris Muckensturm in a note.
The potential Switch acquisition would also provide SoftBank greater control over a portfolio of modern, energy efficient facilities an attractive factor as governments and companies prioritize carbon conscious expansion of AI computing.
Global demand for data centers has risen sharply over the past two years, with industry groups estimating that AI driven workloads could account for more than one quarter of all new data center investments by 2027.
Switch operates across several major US regions, including Nevada, Texas and Michigan, offering large scale facilities that appeal to hyperscalers and enterprise clients. SoftBank’s interest in Switch comes as its competitors pursue similar strategies.
Blackstone, Google, Microsoft and Amazon have all increased data center investments in the past year, signaling that the race for compute capacity mirrors earlier battles over semiconductor supply.
“Compute is the new oil,” said Peter Han, a Singapore based technology researcher. “Owning the infrastructure, especially at this scale, could give SoftBank advantages far beyond traditional tech investments.”
Employees and residents near Switch’s facilities say any deal would likely bring both opportunity and uncertainty.
In Las Vegas, where Switch operates one of the world’s largest data center campuses, small business owner Renee Fielder said she hopes an acquisition would spur further local investment.
“These facilities bring jobs, contractors and new tech companies into the region,” she said. “If SoftBank moves in, we could see even more development.”
Some workers expressed cautious optimism. “Switch has been expanding fast, and a company like SoftBank could accelerate that,” said a technician who asked not to be named. “But with deals this big, there’s always concern about restructuring.”
If completed, the Switch purchase would anchor SoftBank’s expanding AI infrastructure portfolio and give Son a strategic foothold in a market expected to grow exponentially.
Analysts say SoftBank could pursue multiple acquisitions simultaneously, a pattern observed in earlier expansion cycles involving telecom and technology assets.
The focus keyword SoftBank acquisition is likely to remain a dominant theme for investors watching how aggressively the company positions itself ahead of the next wave of AI growth.
SoftBank’s long term plans for Stargate and its other AI related investments suggest that the company aims to build a vertically integrated ecosystem spanning chips, data centers, and model deployment.
SoftBank’s evaluation of a potential Switch acquisition reflects its renewed drive to secure vital AI infrastructure at a moment when global demand for computing power is accelerating.
While the outcome of the talks remains uncertain, analysts say the move highlights Masayoshi Son’s ambition to position SoftBank at the center of the AI economy’s next phase.
