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Nikkei Asia
Japan's SoftBank enters battery business to power AI data centers
SoftBank Corp. has announced a new battery business to address the growing electricity demand from AI data centers. The Japanese telecom giant plans to develop and manufacture battery cells and energy storage systems, initially for its own data centers, with intentions to expand overseas. It has partnered with two South Korean startups and targets annual sales exceeding $640 million. This move highlights the increasing energy consumption of AI infrastructure. By vertically integrating into energy storage, SoftBank aims to ensure reliable power supply and potentially reduce costs. The partnership with South Korean startups brings technical expertise in battery technology. The broader implications include a shift by major tech companies to secure energy resources directly. SoftBank's entry into the battery market could intensify competition and drive innovation in energy storage solutions tailored for data centers. It also signals the convergence of telecom, AI, and energy sectors.
ExperimentConfidence: MediumMid term horizonExecution risk: High
Published 11 May 2026, 08:24 UTC1 min read
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Summary
TL;DR
- SoftBank enters battery manufacturing business.
- Plans to develop battery cells and energy storage systems.
- Initial focus on powering its own AI data centers.
- Targets annual sales over $640 million.
- Partnerships with two South Korean startups.
- Eventual expansion into overseas markets.
- Addresses rising electricity demand from AI.
Interesting facts
- SoftBank is a telecom company, not an energy company, making this a significant diversification.
- The move highlights the massive energy consumption of AI data centers, which is often underestimated.