SoftBank Eyes Switch Inc as It Pushes Deeper Into AI Data Center Expansion

SoftBank Group (TYO:9984) is exploring major acquisition opportunities as founder Masayoshi Son ramps up the company’s ambitions in artificial intelligence infrastructure, according to a Bloomberg report citing sources familiar with the matter. Among the potential targets is U.S.-based data center operator Switch Inc, a closely held company known for designing and operating energy-efficient facilities that support high-performance AI computing.

The report says SoftBank has already held discussions with Switch executives and has begun due diligence, signaling serious interest in the data center specialist. Switch operates large-scale, sustainable data centers across the United States, positioning it as a strategic asset as global demand surges for AI-ready infrastructure capable of handling massive computing workloads.

In parallel, SoftBank is also said to be in advanced talks regarding a possible acquisition of DigitalBridge Group, a New York-listed digital infrastructure investment firm and one of Switch’s key private equity backers. Bloomberg reported last week that SoftBank was studying a deal for DigitalBridge, highlighting a broader strategy to gain exposure to critical digital and AI infrastructure assets.

Sources indicate that Switch’s owners are seeking approximately $50 billion in a potential sale, including debt. At the same time, the company is preparing for a possible initial public offering as early as next year, which could value Switch at around $60 billion. This dual-track approach gives Switch flexibility while testing buyer interest amid strong market demand for data center assets.

Any transaction of this scale would require substantial financing and would rank among SoftBank’s largest deals to date. The move would align with Masayoshi Son’s renewed focus on artificial intelligence following a period of portfolio restructuring and reduced investment activity. However, the discussions remain at an early stage, and there is no certainty that they will result in a finalized agreement.

If completed, such acquisitions would significantly strengthen SoftBank’s position in the global AI infrastructure market, reinforcing its long-term vision of building the foundational platforms that power next-generation artificial intelligence technologies.