SoftBank Acquires DigitalBridge for $4 Billion to Expand Data Centers Amid AI Boom

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SoftBank Group Corp. agreed to acquire private equity firm DigitalBridge Group Inc. for $4 billion, including debt, as founder Masayoshi Son positions the Japanese conglomerate at the center of surging demand for data center infrastructure. The deal brings $108 billion in assets under management and key relationships with investors eager to deploy capital in digital infrastructure fueling the artificial intelligence boom.

SoftBank Doubles Down on Data Centers With $4 Billion DigitalBridge Acquisition

SoftBank Group Corp. has agreed to acquire DigitalBridge Group Inc. for approximately $4 billion including debt, marking a major expansion of the Japanese conglomerate's push into data centers and digital infrastructure amid the AI boom

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. SoftBank will pay $16 per share in cash for the New York-listed investment firm, representing a 65% premium to DigitalBridge's closing share price on December 4, the last trading day before acquisition talks were reported

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. The transaction, expected to close in the second half of 2026 pending regulatory approvals, reflects billionaire founder Masayoshi Son's determination to capitalize on soaring demand for computing capacity that underpins artificial intelligence applications

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Source: Benzinga

Source: Benzinga

Expanding Digital Infrastructure Footprint in the Artificial Intelligence Boom

DigitalBridge Group Inc. is one of the largest investment firms focused on data center infrastructure, managing approximately $108 billion in assets under management as of September

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. Led by CEO Marc Ganzi, the firm's portfolio includes major digital infrastructure operators such as Vantage Data Centers, Switch Inc., DataBank, AtlasEdge, AIMS, and Yondr Group

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. Founded in 1991 as real estate-focused Colony Capital, the firm pivoted under Ganzi into digital infrastructure and rebranded as DigitalBridge in 2021 after shedding most of its legacy property assets

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. After the acquisition, DigitalBridge will operate as a separately managed platform with Ganzi continuing to lead the organization

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Source: Bloomberg

Source: Bloomberg

Data Center M&A Surge Reflects AI-Related Infrastructure Demand

The past year has witnessed a wave of data center M&A deals, with the need for computing power fueling massive transactions across the sector

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. BlackRock Inc. completed a $40 billion purchase of Aligned Data Centers, while Oracle Corp. agreed to supply OpenAI with approximately 4.5 gigawatts of computing power in a deal worth as much as $300 billion

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

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. The DigitalBridge acquisition will bring SoftBank relationships with more investors eager to deploy money in the data center industry, strengthening its position as demand for AI-related infrastructure continues to accelerate

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Masayoshi Son's Vision for AI Infrastructure Leadership

Masayoshi Son has positioned SoftBank at the center of what he describes as a once-in-a-generation technological shift driven by artificial intelligence

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. "As AI transforms industries worldwide, we need more compute, connectivity, power, and scalable infrastructure," Son stated, adding that the acquisition will strengthen the foundation for next-generation AI data centers and advance SoftBank's vision to become a leading ASI platform provider

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

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. While Son pledged to deploy $100 billion immediately, the Stargate project rollout has been slower than planned due to disagreements over data center locations and challenges securing project financing from insurance companies, pension funds, and investment firms

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Source: AIM

Source: AIM

Reallocating Capital for AI Spending

SoftBank's newest investment push has required shifting funds to free up capital for AI spending

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. Son revealed this month he "was crying" over his need to sell a $5.8 billion Nvidia Corp. stake to reallocate money to other AI investments

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. SoftBank has previously executed deals in the asset management space, acquiring Fortress Investment Group for more than $3 billion in 2017 before selling its stake to a group including Abu Dhabi sovereign wealth fund Mubadala Investment Co. and Fortress management in a deal completed in 2024

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. The DigitalBridge transaction represents a 15% premium over the December 26 closing share price and a 50% premium over the unaffected 52-week average as of December 4, with valuations reflecting the intense competition for digital infrastructure assets

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. DigitalBridge shares jumped 9.7% to $15.27 following the announcement, trading slightly below the $16 sale price

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