SoftBank in Talks to Acquire DigitalBridge as Part of Major AI Expansion

According to Bloomberg, which quoted people with knowledge of the situation, SoftBank Group is considering another acquisition, as the Masayoshi Son-led business is in negotiations to purchase DigitalBridge Group Inc. Data centres are among the assets that DigitalBridge, a private equity firm, invests in. SoftBank's discussions coincide with the Japanese company's increased efforts to capitalise on the AI-driven rise in digital infrastructure.

According to the persons who spoke to Bloomberg, SoftBank is negotiating a possible purchase of the New York-listed DigitalBridge and plans to take it private. The purchase is expected to be concluded by the end of this year, according to a Reuters report that quoted an insider.

Data Centres Alluring Investors

This year, investors have poured more money than ever before into digital infrastructure, betting that rising power consumption will make data centres desirable real estate. According to McKinsey, by 2030, infrastructure related to AI might cost $6.7 trillion. DigitalBridge and SoftBank have not yet issued an official statement regarding the situation.

Although discussions are still ongoing and there is no guarantee that they will result in an agreement, Bloomberg stated in its report that a SoftBank-DigitalBridge deal may be finalised as soon as the upcoming weeks. According to the company's website, DigitalBridge's assets under administration, led by CEO Marc Ganzi, were valued at $108 billion at the end of September. AIMS, AtlasEdge, DataBank, Switch, Vantage Data Centres, and Yondr Group are just a few of the digital infrastructure providers in its portfolio.

SoftBank’s Radar Now Shifts to AI Infra

SoftBank's CEO, billionaire Masayoshi Son, has been attempting to capitalise on the rapidly increasing need for the processing power that underpins AI applications. SoftBank, OpenAI, Oracle Corp., and MGX of Abu Dhabi launched a $500 billion project named Stargate in January to construct data centres in the United States.

Despite SoftBank's Son's promise to deploy $100 billion "immediately", Stargate's implementation has taken longer than expected, in part because of disputes over the location of the data centres. According to a May Bloomberg News story, SoftBank first looked to outside investors, such as insurance companies, pension funds, and investment funds, for project financing. However, due to market volatility, uncertainty surrounding US trade policy, and concerns regarding the financial valuations of AI hardware, some of the discussions slowed.