SoftBank has officially entered Japan’s large-scale battery storage market, unveiling plans to establish a next-generation battery manufacturing business integrated with a major AI data center development in Sakai City, Osaka. The move signals the growing convergence of artificial intelligence infrastructure, energy storage systems, and grid modernization strategies across Asia’s technology sector.
According to company announcements released in May 2026, the project will transform a former Sharp LCD manufacturing facility into a multi-functional AI and energy hub housing battery production lines, AI server infrastructure, and advanced computing facilities. SoftBank is targeting annual battery-related revenues exceeding ¥100 billion by 2030 as it accelerates investments in energy systems designed to support high-density AI operations.
A key focus of the initiative is the development of zinc-halogen battery technology through partnerships with South Korea-based Cosmos Lab and AI company DeltaX. Unlike conventional lithium-ion systems, zinc-halogen batteries use water-based electrolytes, offering improved fire safety and potential advantages for stationary grid-scale storage applications. Initial production is expected to begin in fiscal year 2027, with mass-scale manufacturing planned by 2028–2029.
The expansion reflects a broader industry shift as hyperscale AI data centers emerge as major electricity consumers requiring stable, uninterrupted, and flexible power systems. Battery storage is increasingly being positioned not only as backup infrastructure, but also as a critical component for peak shaving, renewable energy integration, and grid stabilization.
SoftBank’s latest initiative also aligns with its wider AI infrastructure ambitions, including collaborations linked to OpenAI, Nvidia, and next-generation server manufacturing. Industry observers view the Osaka project as a significant example of how future digital infrastructure may increasingly combine AI computing, advanced battery storage, and renewable energy integration within a unified industrial ecosystem.
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