SoftBank to build battery factory at former Sharp plant for AI data centres

SoftBank Corp. plans to convert part of the former Sharp LCD factory in Sakai, Osaka into one of Japan's largest battery production lines for AI data centres. Bloomberg reported that executives had considered using the space for robotics manufacturing before settling on energy storage. The batteries are expected to come online within five years. The data centres they are meant to power are being built now. The decision completes a vertical integration stack spanning chips, modular data centre manufacturing, energy generation, and now energy storage. SoftBank owns Arm, the chip architecture inside virtually every smartphone and an increasing share of data centre processors. It acquired Graphcore and Ampere Computing. It is building modular data centre units at a former electric vehicle plant in Lordstown, Ohio, purchased for $375 million. Its energy subsidiary, SB Energy, operates more than three gigawatts of solar capacity in the United States. The North American market for AI data centre energy storage batteries is projected to grow from $898 million this year to $32.4 billion by 2034, a compound annual growth rate of 74.3%. AI data centres have a power profile that conventional infrastructure was not designed to handle, requiring batteries as a buffer between the facility and the grid. SoftBank Group carries approximately 20.5 trillion yen in total debt, roughly $135 billion. S&P downgraded the company's credit outlook to negative in March while affirming its BB+ rating. The Sakai battery line is not a solution for the current energy storage shortage but a bet on the next generation of AI infrastructure.