Investment firm SoftBank Group of Japan is adding to its investment in data centers that support artificial intelligence with plans to acquire private equity firm DigitalBridge Group in a $4 billion deal to help scale next-generation AI systems.
SoftBank, a major financial backer of the Stargate AI project, said Monday it agreed to buy the Boca Raton, Florida-based financial supporter of three major players in the data center industry: DataBank, Vantage Data Centers and Switch.
The three companies are "embracing plans to develop AI infrastructure," Michael Rareshide, a partner at Dallas-based Site Selection Group who leads the firm's data center practice, told CoStar News.
And demand for AI and its related real estate is surging, he added.
"It still feels like there's a lot of infrastructure to be built," Rareshide said, who sits on Blackstone's recently created digital advisory board and wasn't involved in the SoftBank deal. "We can't project five years out, but I don't think things are going to change in the next 18 to 24 months. Money is continuing to pour into AI infrastructure, and they are looking at sites all over the United States."
By having SoftBank's "stamp of approval," it offers a hint as to the "deep pockets" backing these kinds of projects, he added.
The move comes as some critics have expressed concern about whether the relatively recent development of AI will allow the technology to hold over a long-enough time for the resale value of all the new data center real estate getting built to maintain its value and appreciate. Some say major users of AI may choose to lease space rather than invest in a sign of financial caution about the fast pace of technological advancement, a concern Rareshide addresses in pointing out Softbank's support.
Supporting more development
SoftBank's planned acquisition of DigitalBridge is expected to strengthen the investment firm's ability to build, grow and finance support systems for next-generation AI services and applications throughout the globe, executives said.
SoftBank Group Chairman and CEO Masayoshi Son said in a statement that the acquisition of DigitalBridge will "strengthen the foundation for next-generation AI data centers."
The build-out of AI infrastructure represents "one of the most significant investment opportunities of our generation," said DigitalBridge CEO Marc Ganzi, in a statement.
"SoftBank shares our DNA as builders and long-term investors committed to scaling transformational digital infrastructure," Ganzi added. "Their vision, capital strength, and global network will allow us to accelerate our mission with greater flexibility, invest with a longer-term horizon on behalf of our investors, and serve the world's leading technology companies as they scale their AI ambitions."
In the terms of the agreement, SoftBank will indirectly acquire DigitalBridge's outstanding common stock for $16 per share in cash. The transaction was unanimously approved by DigitalBridge's board, following a recommendation by a special committee comprised of independent directors.
Terms of the deal are 15% more than DigitalBridge's closing share price on Dec. 26. On Monday, the announcement initially caused the company's stock to jump more than $20 per share before settling to roughly $15 per share in early-afternoon trading.
The acquisition is subject to regulatory approvals. Upon the closing of the deal in the second half of 2026, DigitalBridge plans to continue to operate as a separately managed platform led by Ganzi.