On Tuesday, Softbank (OTC:SFTBY) Corp. (9434:JP) (OTC: SFBQF) maintained its Buy rating and a price target of JPY2,200.00, as confirmed by a leading financial institution. The endorsement follows Softbank's recent strategic move to acquire exclusive negotiating rights for approximately 60% of Sharp (OTC:SHCAY)'s LCD plant site in Sakai on Sunday. The company's plan is to construct a substantial data center, with an initial capacity of 150MW projected for fiscal year 2025, and an ultimate capacity of 400MW.
The location of the proposed data center is adjacent to a collaborative data center project that includes KDDI (OTC:KDDIF) and Sharp, with the financial terms still under discussion. Softbank's previous announcement regarding a data center in Tomakomai detailed an initial capacity of 50MW and an initial investment of approximately ¥65 billion. The total investment for this project is estimated to surpass ¥100 billion.
This latest investment is seen as a pivotal part of Softbank's declared investment goal of ¥170 billion. It signifies the company's proactive steps to position itself for the anticipated surge in demand related to generative AI technologies. Softbank's strategy involves operating the data center on its own and also leasing it out to third parties.
The financial institution views this development positively, citing the rapidity and scale of the investment. Additionally, it anticipates beneficial impacts for the telecom engineering sector, naming firms like Comsys as likely to benefit from these developments.
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