SoftBank in Talks for Potential $50 Billion Acquisition of Data Center Giant Switch

SoftBank in Talks for Potential $50 Billion Acquisition of Data Center Giant Switch December 12, 2025 Japanese technology investment conglomerate SoftBank Group Corp. is reportedly in discussions to acquire Switch, Inc., a major U.S. data center operator, in a deal that could be valued at approximately $50 billion including debt, according to a Bloomberg report. The potential acquisition underscores the intensifying global race to secure physical infrastructure critical for artificial intelligence and cloud computing. The talks, which involve SoftBank conducting due diligence on Switch, come as the investment giant separately explores acquiring DigitalBridge Group, Switch's primary financial backer. DigitalBridge, a digital infrastructure investment firm with around $108 billion in assets under management as of September, was part of a consortium that took Switch private in a $11 billion deal in 2022. Switch itself has been working towards a potential public listing next year. Founded by billionaire Rob Roy, Las Vegas-based Switch operates large-scale "Prime" data center campuses in key U.S. markets including Austin, Texas; Reno and Las Vegas, Nevada; Grand Rapids, Michigan; and Atlanta, Georgia. The company is known for its proprietary designs and holds an extensive patent portfolio. Its flagship Core Campus in Las Vegas is planned to support up to 495 megawatts of power capacity upon full build-out. In recent months, Switch has filed for significant expansions in Austin and Atlanta, and in July announced development of specialized, high-density facilities for AI workloads. The move aligns with SoftBank founder Masayoshi Son's aggressive strategy to position the company at the forefront of the AI revolution. Son has publicly committed to massive investments in AI infrastructure, including being a primary financial backer for OpenAI's ambitious "Stargate" data center project. To fund these ambitions, SoftBank sold its entire stake in chipmaker Nvidia for $5.83 billion in November—a decision Son emotionally described as making him "cry." Acquiring Switch would provide SoftBank with immediate, large-scale data center capacity and expertise in a market where prime assets are increasingly scarce and valuable. If finalized, the acquisition would mark one of the largest transactions in the data center industry's history, significantly consolidating SoftBank's footprint in a sector viewed as fundamental to the next decade of technological growth. It would also represent a strategic pivot from financial investment to direct ownership and operation of core digital infrastructure. Source: datacenterdynamics