SoftBank Nears Acquisition of DigitalBridge to Boost Data Center and AI Investments

Tokyo | EcoPulse24

Japan’s SoftBank Group is nearing a strategic deal to acquire DigitalBridge Group, a company specializing in digital infrastructure and data center investments. This move reflects SoftBank’s aim to expand its presence in sectors experiencing rapid demand for computing power and artificial intelligence (AI).

According to informed sources, negotiations have reached an advanced stage, with a preliminary agreement potentially imminent. However, a final deal has not yet been secured, and details such as timing and structure remain subject to change.

The acquisition aligns with a strategy led by SoftBank founder Masayoshi Son to leverage the global surge in demand for computational capacity, which underpins AI applications. Technology firms are expanding large-scale data centers to support generative AI models.

DigitalBridge’s market capitalization is approximately $2.5 billion, with a total enterprise value, including debt, of around $3.8 billion. The company’s shares surged earlier this month following reports of takeover talks, rebounding from a period of weak performance since the start of the year.

Led by CEO Marc Ganzi, DigitalBridge manages roughly $108 billion in assets, including stakes in digital infrastructure operators such as Vantage Data Centers, Switch, and DataBank, making it a key global player in the data center sector.

SoftBank has a history of acquiring asset management firms, notably acquiring Fortress Investment Group in 2017 before exiting the investment in a 2024 deal involving Abu Dhabi’s Mubadala.

This potential deal coincides with major SoftBank initiatives, including the Stargate project to build data centers in the US in partnership with OpenAI, Oracle, and MGX. The project aims to develop extensive energy and computing infrastructure but has faced delays due to financing and site selection challenges.

Masayoshi Son has noted that redirecting investments toward AI required restructuring certain assets, including selling part of SoftBank’s stake in NVIDIA to free up capital for expansion in this field.

The potential DigitalBridge acquisition underscores SoftBank’s long-term bet on digital infrastructure amid intensifying competition in the data center sector, fueled by the growth of AI applications and global digital transformation.

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1) What is SoftBank?
SoftBank Group is a global Japanese investment conglomerate headquartered in Tokyo, focusing on advanced technology, AI, and digital infrastructure. It is one of the world’s largest tech investors.

2) What are SoftBank’s main investment areas?
SoftBank targets sectors such as AI, semiconductors, data centers, telecommunications, and future technologies, with significant investments through vehicles like the Vision Fund in both startups and established companies.

3) Why is SoftBank focusing on AI and data centers?
This is part of a strategy led by founder Masayoshi Son to capitalize on rapid growth in computing needs supporting AI applications, with data centers and digital infrastructure as core elements of this global transformation.