Pranav Hotkar
Tokyo, Japan - May 11, 2026 - SoftBank Corp. has launched a new large-scale battery manufacturing business aimed at supporting the rapidly growing power demands of AI infrastructure and hyperscale data centers in Japan, further expanding the company’s push into AI-driven digital infrastructure.
The initiative will focus on developing and manufacturing next-generation battery cells and battery energy storage systems (BESS) at SoftBank’s Sakai facility in Osaka Prefecture. The company said the site is expected to achieve annual production capacity of approximately one gigawatt-hour, positioning it among Japan’s largest battery manufacturing operations.
SoftBank plans to deploy the Japan-produced batteries at the large-scale AI data centers it is currently developing, while also supplying energy storage systems for grid infrastructure, industrial facilities, factories, and residential applications over time.
The company will establish two new ventures as part of the initiative. AX Factory will focus on AI data center operations and AI hardware manufacturing, while GX Factory will oversee production of batteries, solar panels, and related energy technologies.
SoftBank said the project is being developed in partnership with South Korean battery company Cosmos Lab and AI firm DeltaX. Commercial production is expected to begin during the fiscal year ending March 2028, with mass production targeted shortly afterward.
The expansion aligns closely with SoftBank’s broader AI infrastructure strategy, which has accelerated significantly over the past two years through investments in OpenAI, AI server manufacturing, and hyperscale data center projects. The company is already developing a major AI data center campus at Sharp’s former LCD plant in Sakai, Osaka, with reports indicating the facility could support approximately 150MW of power capacity.
Industry analysts increasingly view battery energy storage as becoming critical infrastructure for AI-driven data centers, particularly as GPU clusters and high-density compute deployments create new pressures on electrical grids. Large-scale battery systems can help operators stabilize power delivery, manage peak demand, and improve resilience for AI workloads.
SoftBank said it aims to generate more than ¥100 billion in annual revenue from its domestic battery business by fiscal 2030.
The announcement also comes amid broader efforts by the company to localize AI infrastructure development in Japan. Recent reports indicate SoftBank has been exploring domestic AI server manufacturing partnerships with NVIDIA and Foxconn as part of a wider strategy to strengthen sovereign AI capabilities and reduce reliance on overseas infrastructure supply chains.
As global AI infrastructure demand continues to surge, the move underscores how energy systems, battery storage, and data center development are becoming increasingly interconnected within next-generation digital infrastructure strategies.
