According to SoftBank, the planned data center will occupy 440,000 square meters, about 60% of the Sakai site. The new large-scale facility will support SoftBank’s generative AI and other AI-related businesses. The firm also plans to provide data-center services to various enterprises, colleges and research institutions.
SoftBank plans to begin construction this fall and launch the data center next year. The company also hopes to collaborate with Sharp on AI ventures.
Meanwhile, Japan’s second-largest mobile carrier, KDDI, has begun talks with Sharp to build an AI data center at the Sakai site. This facility is expected to be one of the largest in Asia, designed to cope with the explosive increases in the volume of data processed by AI in the coming years.
KDDI announced that Super Micro Computer, a U.S.-based server maker, and Datasection, a Tokyo-based data science firm, are joining the discussions as partners. The three firms and Sharp aim to build the data center and start operations as soon as possible.
The AI data center projects mark a significant turning point for Sharp's Sakai plant, which was established in 2009. Sharp invested approximately ¥430 billion to create a state-of-the-art facility for LCD panel production.
LCD panels were Sharp's signature business, and the Osaka-based firm made this large investment to maintain a competitive edge in the global market. However, Sharp struggled to keep up with Chinese and Taiwanese rivals.
In 2016, the struggling Sharp was taken over by Taiwan's Hon Hai Precision Industry, a move aimed at turning around its LCD business.
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