SoftBank Terminates $50 Billion Acquisition Talks for Data Center Operator Switch

SoftBank Terminates $50 Billion Acquisition Talks for Data Center Operator Switch January 26, 2026 In a significant development for the digital infrastructure investment landscape, SoftBank Group Corp. has ended negotiations to acquire U.S. data center firm Switch, Ltd. for approximately $50 billion. The collapse of the high-stakes deal underscores the complex financial and operational challenges involved in large-scale consolidation within the rapidly expanding data center sector, which is under intense pressure to meet soaring demand from artificial intelligence and cloud computing. According to sources familiar with the matter cited by Bloomberg, the Japanese conglomerate halted discussions due to mounting concerns over financing the substantial transaction and the logistical hurdles of integrating Switch's extensive national footprint. Talks between the two parties had been ongoing since reports of a potential deal surfaced in December 2025. The proposed acquisition was seen as a strategic move by SoftBank founder Masayoshi Son to secure critical capacity for major AI projects, including OpenAI's ambitious $500 billion Stargate infrastructure initiative, which SoftBank supports. Switch, founded by CEO Rob Roy in 2000, operates massive 'Prime' data center campuses in key markets including Austin, Texas; Reno and Las Vegas, Nevada; Grand Rapids, Michigan; and Atlanta, Georgia. Its flagship Core Campus in Las Vegas is designed for a total capacity of up to 495MW upon full build-out. The company, which was taken private in 2022 by DigitalBridge and IFM Investors in an $11 billion deal, has been actively expanding its footprint and recently announced plans to develop specialized, high-density facilities for AI workloads. The termination of the Switch talks coincides with SoftBank's separate, ongoing plan to acquire DigitalBridge Group, Inc.—the digital infrastructure investment firm that holds a majority stake in Switch—for about $3 billion. That deal pertains only to the DigitalBridge management company, not its $108 billion portfolio of managed assets which includes Switch. Meanwhile, Switch is reportedly considering an initial public offering that could value the company at up to $60 billion, presenting an alternative path for its future. Industry analysts suggest the failed negotiation may signal a period of increased scrutiny for mega-deals in the sector, as investors balance aggressive growth ambitions against realistic capital allocation and execution risks. The outcome leaves Switch to pursue its expansion and potential IPO independently, while SoftBank may seek alternative partnerships to bolster its AI infrastructure capabilities. Source: datacenterdynamics