Japan’s SoftBank has thrown down the gauntlet with its €75 billion investment in French data centers, aiming for an impressive 5 gigawatts of new capacity. The first phase will see construction in Dunkirk, Bosquel, and Bouchain, providing a significant boost to the Hauts-de-France region by 2031.

With SoftBank both investing in and using AI giant OpenAI’s services, this is no small move. It signals Europe as a key battleground for tech dominance, even as the U.S. grapples with environmental concerns over data center expansion.

The announcement comes amid rising tensions over the impact of data centers on local grids and utility prices in the United States. Despite these worries, SoftBank is pressing ahead, including plans to power a new 9.2 gigawatt natural gas plant for its Ohio site.

French Minister Roland Lescure sees this as a validation of President Macron’s ambitions, positioning France as a central player in AI development. But with the environment and local communities increasingly at odds with the tech giants, can Europe’s green credentials withstand such an influx?