SoftBank Banks on DC Power Needs

Why It Matters

The venture gives SoftBank a foothold in the fast‑growing energy‑storage market, addressing data‑centre power reliability while diversifying its revenue beyond telecom. Its focus on safer zinc‑halogen chemistry could set new industry standards for large‑scale storage.

Key Takeaways

• SoftBank to launch zinc‑halogen battery production by FY2027
• Mass production target: 1 GWh per year by FY2028
• Partnership with Cosmos Lab ensures non‑flammable, water‑based electrolyte cells
• DeltaX provides cell‑connection and packaging tech for higher storage efficiency
• AI will optimize charge‑discharge cycles for data‑centre power stability

Pulse Analysis

Data centres are increasingly vulnerable to power interruptions, prompting operators to seek on‑site energy storage that can deliver uninterrupted DC power. SoftBank’s decision to locate its battery venture within the Osaka Sakai AI Data Centre leverages existing infrastructure while positioning the firm at the intersection of AI‑driven demand forecasting and next‑generation storage. By targeting a gigawatt‑hour annual output by fiscal 2028, SoftBank aims to meet the scaling needs of hyperscale cloud providers and industrial customers that require both capacity and reliability.

The technical heart of SoftBank’s offering lies in zinc‑halogen chemistry, a departure from the lithium‑ion dominance in the market. Developed with Cosmos Lab, these cells use pure water as the electrolyte, dramatically reducing fire risk and potentially extending cycle life. DeltaX’s expertise in cell‑connection and packaging further boosts energy density and thermal management, promising efficiency on par with or superior to traditional lithium solutions. This combination of safety, performance, and modular design could attract enterprises wary of lithium’s volatility, especially in regions with stringent fire codes.

Financially, SoftBank’s battery push dovetails with its robust earnings—revenue hit ¥7 trillion (≈$44.6 billion) in fiscal 2025, with net income of ¥550.8 billion (≈$3.7 billion). The diversification into energy storage aligns with a broader corporate strategy to capitalize on AI and infrastructure trends, while the AI‑enabled load‑balancing system promises operational cost savings for customers. If the gigawatt‑hour target is met, SoftBank could emerge as a key player in the global storage market, challenging incumbents and shaping standards for safe, high‑capacity battery deployments.