SoftBank is pushing forward with its plans to establish a significant AI presence in its home market of Japan, both independently and through strategic partnerships, including one with OpenAI. The company has confirmed that it will be acquiring a former Sharp factory, previously used for LCD panel production, for $676 million, with the intention of converting it into an artificial intelligence data center, as announced on Friday.

The purchase and sale agreement between SoftBank and Sharp encompasses both the land and buildings of the Sharp Sakai Plant in Osaka, with a total price of 100 billion yen, equivalent to $676 million.

This acquisition marks a crucial initial step for SoftBank, as substantial data center capacity is essential for training models and provisioning subsequent services in the rapidly evolving field of generative AI, which is currently sweeping the tech industry.

When inquired about whether the site is part of its plans to commercialize OpenAI’s models in Japan, a SoftBank spokesperson referred TechCrunch to its previous announcement regarding a collaboration with OpenAI to deploy an advanced enterprise AI called “Cristal Intelligence” in Japan. OpenAI declined to comment on the news when contacted for a response.

According to reports, OpenAI intends to introduce its AI foundational models to the Japanese market, utilizing GPUs to develop models at the Sakai plant. SB OpenAI Japan, a joint venture between SoftBank and OpenAI, will train models using clients’ data from marketing and other activities, and subsequently sell customized AI agents to clients, as reported by Nikkei.

The data center plan highlights the expanding scope of collaboration between SoftBank and OpenAI.

The two tech companies unveiled their joint venture in Japan following their partnership announcements, including OpenAI’s collaborations with SoftBank, Oracle, and other companies to build several AI data centers in the U.S. SoftBank is also investing in OpenAI, with talks ongoing for months. The latest reports suggest that SoftBank is reportedly investing as much as $25 billion in OpenAI at a valuation of nearly $300 billion, although this fundraising has yet to be officially announced or closed.

SoftBank’s purchase of the plant comes approximately 10 months after signing an MOU to construct a large AI data center at a plant previously used by Sharp for LCD panel production.

SoftBank aims to commence operations in 2026, with the expectation that the former LCD panel factory will have sufficient power capacity to operate the AI data center, initially at around 150 megawatts and eventually increasing to over 240 megawatts.

The Sakai facility will be SoftBank’s third data center, adding to its existing data center in Tokyo and another one currently under construction in Hokkaido.