SoftBank, the mobile unit of SoftBank Group, may roll out its AI cloud business in other countries before the U.S. if American conditions deteriorate, CEO Junichi Miyakawa said, according to Bloomberg.
Speaking to investors in Tokyo as the company reported its results, Miyakawa said recent developments in the U.S. will not help the company. Should conditions in the U.S. deteriorate sharply, he said, “we may launch in other countries first,” according to Bloomberg. He added that, worldwide, customers still want plenty of AI data center capacity.
The company had been preparing to build AI cloud operations in the U.S., according to Bloomberg. It is now working out the effect of last week’s Democratic midterm sweep and mounting resistance to data centers, Bloomberg said.
The Democratic win has led observers to anticipate stricter regulatory oversight and slower construction of data centers, according to Business Recorder.
SoftBank on Monday announced its consolidated earnings results for the six months ended Sept. 30. The company raised its annual profit outlook, and its cloud and AI-related revenue rose 37% in the six months through September.
SoftBank is Japan’s third-largest wireless carrier, according to Bloomberg. It has branched out into AI services and data center operations to meet growing demand among Japanese businesses. Its plans call for up to 10 gigawatts of U.S. capacity.
SoftBank Group has also been looking at Asia for AI infrastructure. Malaysian Prime Minister Anwar Ibrahim said last month that the group intends to put $50 billion into Malaysia for AI, data centers and other emerging technologies. Anwar said SoftBank Group founder and CEO Masayoshi Son had chosen sites in Kuching, Sarawak, and in peninsular Malaysia.
SoftBank Group is discussing the plan as it works to bring to Asia the AI infrastructure buildout it has pursued in the U.S. and Europe.