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SoftBank-Backed SB Energy Subsidiary to Convert Former Texas 3M Campus into $1B R&D Tech Center

By: IDCNOVARegion: North America
SoftBank affiliate SE Cosmos will transform the former 3M campus in Austin, Texas, into a research and development technology center, according to a filing with the US Securities and Exchange Commission. The project represents a significant repurposing of an aging industrial site into a modern technology hub, underscoring the growing convergence of real estate redevelopment and advanced computing infrastructure.

SE Cosmos, which is indirectly owned by SoftBank-backed SB Energy, has secured approximately $1 billion in financing to convert the campus for this purpose. The site, originally built in the 1980s, was sold by 3M in 2018 and is now referred to as the "Cosmos Technology Campus." The redevelopment marks a notable shift for a property that once served traditional manufacturing purposes, now being repositioned to support cutting-edge research in artificial intelligence and semiconductor development.

According to a ratings note from S&P Global, the facility will comprise 50MW of critical IT load, including rack development halls, silicon development bench spaces, and high-density powered lab halls. SoftBank intends to use the facilities for R&D to support its AI technology development strategy, reflecting the company's broader push into AI infrastructure and chip design. The note also revealed that the campus will be powered by local public utility Austin Energy, which will be making upgrades to its existing substation to accommodate the increased power demands of the site.

The SEC filing further disclosed that Silver Bands 3 (US) Corp., another SoftBank affiliate, has leased space in the facility for an initial 15-year term. The lease is expected to generate $2.5 billion in rent over the term and will commence in stages between 2026 and 2027. The scale of the lease commitment signals strong internal demand for the R&D capacity being developed at the site.

SB Energy was founded as a subsidiary of SoftBank in 2011, with a separate global entity, SB Energy Global, established in 2015 to develop projects outside of Japan. The company has been expanding its footprint in the US energy and data center markets. Last week, SB Energy filed for an initial public offering targeting a raise of between $5 billion and $7 billion, with a valuation of $50 billion. In August, Nvidia confirmed it would invest $1.5 billion in SB Energy to support a separate data center campus in Pike County, Ohio. The company has also signed on to build and operate OpenAI's 1.2GW Stargate data center in Milam County, Texas.

The conversion of the former 3M campus into an R&D technology center reflects a broader industry trend of repurposing existing industrial and commercial sites for high-density computing and research applications. As demand for AI development capacity continues to surge, projects like the Cosmos Technology Campus are expected to play a critical role in supporting the next generation of chip design and artificial intelligence innovation. The involvement of SoftBank and its affiliates highlights the increasing convergence of energy, real estate, and technology infrastructure in the race to build out AI capabilities.