SoftBank may reconsider its NeoCloud business in the United States and shift to other regions.

SoftBank is preparing for a potential cooling of demand for artificial intelligence data centers in the United States, and is turning its sights to other markets for growth.

According to a Bloomberg report on the 9th, SoftBank's mobile business has previously started deploying NeoCloud operations in the United States, but is currently assessing the potential impact of changes in the U.S. political and public opinion environment.

Junichi Miyakawa, CEO of SoftBank's mobile business, told investors at a performance briefing in Tokyo that "Significant progress in the United States will not be particularly favorable to us", adding that if the situation in the United States further deteriorates, "we may be the first to launch in other countries".

This statement has reignited market concerns about the investment prospects of U.S. data centers. Silicon Valley investor Chamath Palihapitiya previously also warned on the All-In Podcast about the prospect of data centers moving out of the United States, while guest David Sacks pointed out that if the United States does not build these data centers, it will pay a high price for importing "Token".

Strong Performance of SoftBank Mobile, But U.S. Expansion Plans Cast in Shadow

SoftBank's mobile business is one of the most important cash cows of Masayoshi Son's investment group and the third largest wireless operator in Japan. Under the leadership of Miyakawa, this business continues to expand into data centers and artificial intelligence services to seize the surging computing power demand of Japanese enterprises.

At the financial level, SoftBank Mobile has raised its full-year profit forecast. In the six months ending in September, cloud computing and AI-related revenue jumped 37% year-on-year, supporting this upward revision of expectations.

However, uncertainties in the U.S. market are interfering with its more ambitious expansion plans. SoftBank originally planned to build up to 10 gigawatts of data center capacity in the United States, and the path to achieve this goal is currently under review.

Rising Feasibility of Cross-Border Computing Power Delivery, Reconstructed Logic of Data Center Site Selection

Behind SoftBank's consideration of shifting to other markets is a set of site selection logic that is being re-examined by the market: ultra-large data centers do not necessarily have to be located in the United States.

Data centers at the $50 billion level and gigawatt scale can be fully deployed in Canada, Mexico, Malaysia, Singapore, and even the Middle East. Google has already deployed large-scale data centers in Malaysia. With existing submarine optical cables, CDN technology and Starlink network, the latency and efficiency of cross-border delivery of computing power no longer constitute major obstacles, which fundamentally weakens the traditional logic that "data centers must be located locally for users".

Miyakawa also pointed out that the overall global demand for artificial intelligence data centers remains strong, and SoftBank's strategic adjustment is more of a response to the specific environment in the United States, rather than a general bearish view on the industry outlook.

Investors Question Sustainability of Data Center Spending, More Than $3.5 Trillion Faces Impairment Risk

SoftBank's prudent stance echoes the widespread market questioning of the economics of data center investment. More and more investors are asking: whether the business model of cloud services tied to artificial intelligence is viable, and whether massive data center spending can generate sufficient returns.

Analysis from research firm Gartner shows that by 2030, more than $3.5 trillion in artificial intelligence infrastructure investment may face impairment risk. This figure highlights that if the current data center construction boom fails to meet demand expectations, the inherent financial risks cannot be underestimated.

For investors, SoftBank's plan adjustment is a clear signal: on the artificial intelligence infrastructure track, the flexibility of geographical layout is becoming a competitive variable as important as the size of capital.

This article does not constitute personal investment advice, does not represent the platform's views. The market is risky, investment needs to be cautious, please make independent judgments and decisions.

This article is from the WeChat Official Account "Wall Street CN", authors: Bu Shuqing, Zhang Yaqi, published with authorization from 36Kr.