Overview
- SoftBank paused months-long talks to buy U.S. data center operator Switch in a deal valued at about $50 billion.
- Masayoshi Son scrapped a planned January announcement and conceded an outright acquisition was no longer viable.
- SoftBank and Switch remain in active discussions over a minority investment or partnership that would offer more limited control.
- Analysts say the pullback leaves SoftBank’s role in the Stargate buildout uncertain, increasing reliance on third-party operators for capacity.
- Concerns cited include the deal’s scale, the complexity of running dispersed campuses and likely regulatory scrutiny, as SoftBank pursues AI bets and indirect exposure through DigitalBridge while S&P flags credit pressure.