TLDRs;
- Oracle and SoftBank are partnering to launch a sovereign AI and cloud platform entirely operated within Japan.
- The new Cloud PF Type A will debut in 2026, powered by Oracle Alloy and hosted in Japanese data centers.
- The collaboration aims to meet Japan’s growing demand for secure, compliant, and locally managed cloud services.
- Oracle’s US$8 billion investment plan will expand local operations, AI capacity, and cloud infrastructure in Japan.
SoftBank and Oracle are deepening their technological alliance to deliver Japan’s next-generation sovereign cloud and AI infrastructure.
The two companies have announced a partnership centered on Oracle Alloy, Oracle’s customizable cloud platform designed for local deployment. Through this collaboration, SoftBank will roll out its new Cloud PF Type A service, aimed at providing secure, locally managed AI and cloud capabilities to enterprises and public sector organizations across Japan.
Set to debut in April 2026 for eastern Japan and October 2026 for western Japan, the initiative underscores both firms’ shared commitment to protecting sensitive data and strengthening Japan’s digital independence. All operations, data storage, and management will remain fully within Japanese borders, a key requirement for sectors that must adhere to strict data residency and governance regulations.
Driving Sovereignty Through AI Innovation
The upcoming Cloud PF Type A platform will give Japanese companies access to over 200 Oracle Cloud Infrastructure (OCI) services, including powerful AI, analytics, and computing tools. SoftBank will integrate generative AI models and high-performance GPUs into the system, creating a secure environment capable of handling complex AI workloads and real-time data processing.
Hayato Sakurai, SoftBank’s Executive Vice President, highlighted the project’s potential to accelerate Japan’s digital competitiveness.
“By integrating advanced technologies such as generative AI and high-performance GPUs, we are empowering our customers to innovate, remain competitive, and drive Japan’s digital transformation,” Sakurai said.
To ensure top-tier security, SoftBank will employ an encryption key management system that combines Oracle’s trusted security framework with its own proprietary tools. This hybrid security layer aims to safeguard customer credentials, data, and infrastructure integrity against emerging cyber threats.
Oracle Expands Its Sovereign Cloud Footprint
For Oracle, the partnership represents another major step in its growing sovereign cloud strategy in Japan. Toshimitsu Misawa, Oracle Japan’s President and Corporate Executive Officer, emphasized that the collaboration reflects Japan’s increasing need for localized AI and data control.
“With Oracle Alloy, SoftBank customers can benefit from OCI’s full suite of AI and cloud services within Japan’s borders,” Misawa explained. “We are enabling our customers to run advanced AI workloads quickly, securely, and efficiently.”
Oracle’s involvement goes beyond technology supply, the company has committed to a long-term investment plan of over US$8 billion in Japan over the next decade. This expansion will increase Oracle’s engineering presence, support operations, and local cloud infrastructure in Tokyo and Osaka, while also boosting resources for Oracle Alloy and OCI Dedicated Region deployments.
Rising Demand for Sovereign Cloud Solutions
SoftBank and Oracle’s collaboration comes as Japan’s government and enterprises ramp up efforts to localize digital infrastructure and strengthen national data resilience.
With increasing reliance on cloud computing and AI-driven analytics, Japanese regulators have been pushing for “sovereign” solutions, platforms that store, process, and manage data domestically rather than relying on foreign-owned systems.
The partnership aligns with similar moves from other domestic technology giants such as NTT Data Japan and Fujitsu, both of which have also adopted Oracle Alloy to deliver sovereign cloud offerings. This growing ecosystem signals a broader industry shift toward locally governed, high-performance cloud environments that balance innovation with compliance.
