Japan's SoftBank Enters Battery Business to Power AI Data Centers
May 11, 2026
Japan's SoftBank Enters Battery Business to Power AI Data Centers
SoftBank Corp. has launched a battery business in Japan, aiming to address the surging electricity demands of artificial intelligence data centers. The telecommunications giant is partnering with two South Korean startups to develop and manufacture battery cells and energy storage systems, with an initial focus on powering its own AI infrastructure before expanding into overseas markets.
The move comes as AI data centers increasingly strain global power grids, with operators seeking reliable and scalable energy storage solutions to ensure uptime and manage peak loads. SoftBank's entry into this sector underscores a growing convergence between telecommunications, energy, and AI infrastructure. The company plans to target annual sales exceeding $640 million from the battery business, positioning it as a significant revenue stream in the long term.
By integrating battery energy storage systems (BESS) into its data center operations, SoftBank aims to stabilize power supply, reduce reliance on fossil fuels during peak demand, and support the integration of renewable energy sources. The initiative aligns with broader industry trends where hyperscale data center operators are investing in onsite energy storage to improve efficiency and sustainability. SoftBank's strategy also includes eventual overseas expansion, leveraging its global network and partnerships to tap into the rapidly growing market for data center energy infrastructure.
Source: asia.nikkei
