Japan’s SoftBank Group Corp. has struck a deal to acquire DigitalBridge Group Inc. for $4 billion, plunging deeper into the red-hot infrastructure powering artificial intelligence. The agreement, announced Monday, values DigitalBridge at $16 per share in cash—a 15% premium to its December 26 closing price—amid surging demand for data centers to support AI workloads. SoftBank CEO Masayoshi Son hailed the move as one that ‘will strengthen the foundation for next-generation AI data centers.’

DigitalBridge shares rocketed 9.7% to $15.27 on the news, following a 45% surge earlier this month after initial reports of talks. The deal, unanimously approved by a special committee of DigitalBridge’s board, expands SoftBank’s footprint in digital infrastructure at a time when AI giants like OpenAI and Google are racing to build out massive computing capacity. CNBC first detailed the transaction’s terms, underscoring SoftBank’s aggressive pivot under Mr. Son toward AI dominance.

Strategic Foundations in AI Infrastructure

SoftBank, long a visionary investor through its Vision Fund, sees DigitalBridge’s portfolio of data centers, cell towers and fiber networks as a critical asset. DigitalBridge manages over $75 billion in digital infrastructure investments, including partnerships with Vantage Data Centers and ScaleThree, positioning it at the heart of the AI boom. ‘The acquisition would expand SoftBank’s exposure to digital infrastructure as the Japanese conglomerate is positioning its portfolio to focus on artificial intelligence,’ Reuters reported.

This isn’t SoftBank’s first foray into AI hardware. The company has poured billions into Arm Holdings and is backing Stargate, a $500 billion AI data center project with OpenAI and Oracle. Acquiring DigitalBridge accelerates SoftBank’s control over the physical backbone of AI, from power-hungry GPU clusters to hyperscale facilities. Bloomberg noted SoftBank was in ‘advanced talks’ as recently as Sunday, with an announcement expected imminently. Bloomberg.

The global data center market, projected to exceed $400 billion by 2028, faces acute power and supply constraints. SoftBank’s move comes as rivals like Blackstone and KKR snap up similar assets, but DigitalBridge’s focus on AI-optimized sites gives SoftBank an edge in high-density computing.

Son’s Vision Takes Shape

Masayoshi Son, SoftBank’s larger-than-life chairman, has reoriented the firm post-WeWork debacle toward AI supremacy. ‘Japan’s SoftBank on Monday said it has agreed to buy data center investment firm DigitalBridge for $4 billion as part of its artificial intelligence push,’ per CNBC. Mr. Son’s empire now spans semiconductors via Arm, robotics through Boston Dynamics, and now prime real estate for AI training models.

DigitalBridge, formerly Colony Capital, rebranded in 2021 to chase digital assets, boasting assets under management that include $8 billion in data center equity. Its portfolio features next-gen facilities with liquid cooling for Nvidia’s Blackwell chips, essential for frontier AI. Reuters highlighted how the $16-per-share offer reflects a premium valuation driven by AI tailwinds.

Regulatory scrutiny looms, given SoftBank’s Japanese roots and DigitalBridge’s U.S. base, but antitrust hurdles appear low in the fragmented infrastructure sector. JPMorgan analysts, cited in market chatter, pegged potential deal values at $25-$35 per share pre-announcement, suggesting SoftBank got a measured entry point.

Portfolio Synergies Unleashed

Post-acquisition, SoftBank gains DigitalBridge’s joint ventures, like the $7 billion Vantage partnership, which operates 50+ data centers globally. This meshes with SoftBank’s $100 billion AI fund ambitions and ties into its Izanagi project for domestic AI infrastructure. The Economic Times noted SoftBank ‘nears deal for data center investment firm DigitalBridge.’ The Economic Times.

DigitalBridge CEO Marc Ganzi, who will likely stay on, brings expertise from scaling telecom assets at First Infrastructure Capital. Ganzi’s firm has pivoted aggressively to AI, acquiring data centers in Europe and Asia. Integration could see SoftBank funnel Vision Fund capital into expansions, targeting 1GW+ capacity by 2027.

Power sourcing emerges as a linchpin: DigitalBridge’s sites leverage nuclear, solar and grid upgrades, addressing AI’s voracious energy needs—equivalent to small countries. SoftBank’s prior Starlink tie-ups with SpaceX hint at hybrid satellite-ground networks for edge AI.

Market Ripples and Rival Plays

Shares of peers like Equinix and Digital Realty dipped slightly on dilution fears, but the deal validates infrastructure as AI’s new gold rush. Blackstone’s $16 billion AirTrunk buyout earlier this year set precedents, yet SoftBank’s all-cash structure minimizes execution risk. The Guardian framed it as SoftBank ‘deepen[ing] ties to AI.’

Financing details remain sparse, but SoftBank’s $20 billion cash pile and bond market access cover the tab easily. Debt markets, flush with yield-hungry investors, could fund expansions via DigitalBridge’s investment vehicles. GuruFocus reported the acquisition ‘enhanc[es] its AI infrastructure capabilities.’ GuruFocus.

For industry insiders, this signals consolidation: Expect more M&A as hyperscalers lease 20%+ of global capacity yearly. SoftBank’s play positions it against Microsoft-backed assets and Brookfield’s bids, reshaping who controls AI’s physical layer.

Global AI Power Dynamics Shift

Geopolitics factors in: SoftBank’s U.S. expansion counters China’s dominance in supply chains, aligning with Biden-era export controls on AI chips. DigitalBridge’s international footprint—Australia, U.K., Brazil—diversifies SoftBank beyond Japan. Tech in Asia reported SoftBank ‘reportedly nears deal to acquire DigitalBridge.’ Tech in Asia.

Longer-term, sustainability pressures mount. Data centers guzzle 2-3% of global electricity, prompting DigitalBridge’s green initiatives like hydro-powered sites. SoftBank could leverage this for ESG appeal, attracting sovereign funds.

Investor sentiment on X buzzed post-announcement, with posts from SoftBank’s account highlighting unrelated AI pushes, but market focus locked on the deal’s AI multiplier effect. As Mr. Son eyes trillion-yen valuations, DigitalBridge becomes the silicon valley of servers in his arsenal.