SoftBank Corp., the Japanese telecommunications subsidiary of SoftBank Group, has announced plans to build a large-scale data center for artificial intelligence (AI) applications on the Sharp Corp. site in Osaka. The company aims to commence operations of the data center in 2025.

The data center will be used for SoftBank's own generative AI development as well as for other AI-related business areas. The company is also exploring a collaboration with Sharp, a Japanese unit of the Foxconn Technology Group, in the field of AI.

In May, Sharp announced that it would stop the production of display panels at the Sakai plant by the end of September due to declining demand. Sharp is looking for new business opportunities for the site.

SoftBank Corp. plans to quickly establish the data center by acquiring the land, buildings, and other facilities of the Sakai plant. The center is expected to have a power capacity of approximately 150 megawatts on an area of around 440,000 square meters, which constitutes about 60% of the total area of the Sakai plant.

The Japanese tech startup Datasection also announced plans to establish a joint venture with Sharp and another Japanese telecommunications company, KDDI, to set up an AI data center in the Sakai plant.