SoftBank acquires DigitalBridge for $4 billion to secure critical AI data center infrastructure

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SoftBank has agreed to acquire digital infrastructure investor DigitalBridge for $4 billion, including debt, in a move to secure data center capacity and power for large-scale AI compute. The deal gives SoftBank access to DigitalBridge's 22-gigawatt power bank and relationships with investors eager to deploy capital in the data center industry. This acquisition comes as AI infrastructure planning shifts upstream into power origination and grid access.

SoftBank Bets $4 Billion on Securing AI Data Center Power Through DigitalBridge Acquisition

SoftBank has agreed to acquire DigitalBridge in a transaction valued at approximately $4 billion, including debt, marking a strategic push to secure critical infrastructure for AI compute at scale

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. The Japanese conglomerate will pay $16 per share in cash for the New York-listed digital infrastructure investor, representing a 65% premium to DigitalBridge's closing share price on December 4, the last trading day before deal talks became public

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. The transaction is expected to close in the second half of 2026, pending regulatory approvals

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Source: Benzinga

Source: Benzinga

Masayoshi Son, SoftBank's billionaire founder, is repositioning the company to capitalize on the AI boom after years of mixed results from its Vision Fund strategy

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. The SoftBank acquisition comes just days after Alphabet announced it would acquire Intersect, another provider of data center and energy infrastructure solutions, for $4.75 billion in cash

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. Together, these deals signal how AI infrastructure planning is moving upstream into power origination and grid access, rather than focusing solely on server procurement.

Source: AIM

Source: AIM

Why Securing AI Data Center Power Has Become Critical for Tech Giants

DigitalBridge manages approximately $108 billion in digital infrastructure assets and operates as an infrastructure investment and management platform that raises capital, acquires or develops assets, and places operational teams around them

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. The investment firm's portfolio includes well-known data center platforms such as Switch, Vantage Data Centers, DataBank, AtlasEdge, Yondr, and AIMS

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. Within its data center holdings, DigitalBridge has a "power bank" of around 22 gigawatts across land it owns, facilities already operating, and projects under development

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Source: Bloomberg

Source: Bloomberg

The demand for data centers has intensified as AI compute buildouts face bottlenecks from physical infrastructure rather than silicon supply

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. Even when accelerators from vendors such as Nvidia are available, bringing a new AI facility online can take years due to grid interconnection queues, local permitting, and the need to design cooling infrastructure and power delivery systems that can sustain extremely high continuous loads

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. Traditional enterprise and cloud data centers were built around rack densities measured in single-digit or low double-digit kilowatts, but AI systems routinely target densities that approach or exceed 100 kilowatts

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Data Center M&A Surge Reflects Broader Industry Transformation

The AI boom has fueled massive transactions in the digital infrastructure space. BlackRock acquired Aligned Data Centers for $40 billion, while Oracle Corp. agreed to supply OpenAI with about 4.5 gigawatts of computing power worth as much as $300 billion

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. These high-density AI racks demand liquid cooling, often with direct-to-chip cold plates and increasingly with rear-door heat exchangers or full immersion in some designs

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. Power distribution moves away from conventional raised-floor layouts toward busways, higher-voltage feeds, and redundant substations sized for continuous peak load

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The deal will bring to SoftBank relationships with more investors keen to deploy money in the data center industry

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. DigitalBridge is led by Chief Executive Officer Marc Ganzi, who will continue leading the company as a separately managed platform

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. SoftBank has separately been discussing a potential acquisition of Switch, a data center operator backed by investors including DigitalBridge, with Switch's owners seeking a valuation of around $50 billion including debt

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Stargate Project and SoftBank's Broader AI Infrastructure Strategy

In January, SoftBank announced the $500 billion Stargate project, alongside OpenAI, Oracle Corp., and Abu Dhabi's MGX, to build data centers in the US

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. While Masayoshi Son pledged to deploy $100 billion "immediately," the rollout of Stargate has been slower than planned, in part because of disagreements over where the data centers should be located

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. OpenAI, Oracle and SoftBank announced plans in September for five new sites across Texas, New Mexico and Ohio that will eventually have a power capacity of 7 gigawatts

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SoftBank initially sought project financing from outside investors including insurance companies, pension funds and investment funds, but some conversations dragged due to market volatility, uncertainty around US trade policy and questions about the financial valuations of AI hardware

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. Son this month said he "was crying" over his need to sell a $5.8 billion Nvidia stake to reallocate the money to other AI spending

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. SoftBank has previously done deals in the asset management space, acquiring Fortress Investment Group for more than $3 billion in 2017 before selling its stake in a deal completed in 2024

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DigitalBridge's emphasis on megawatts and entitled land addresses a problem that money alone cannot fix for hyperscalers

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. A parcel of land capable of supporting 50-100 megawatts of reliable power, with room for substations and cooling infrastructure, is far more valuable for AI than a conventional colocation shell that must be retrofitted

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. DigitalBridge shares jumped 9.7% to $15.27 following the announcement, trading slightly below the sale price

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