SoftBank Group Corp., known for splashy deals involving billions of dollars (see: its Vision Fund and investments in Uber and Didi), has signed a memorandum of understanding with Saudi Arabia to build a $200 billion solar power plant. Expected to reach its full capacity of 200 gigawatts by 2030, the development will be the largest of its kind in the world by far.
According to data compiled by Bloomberg New Energy Finance, the Saudi Arabian project is about 100 times larger than the next biggest proposed development, the 2 gigawatt Solar Choice Bulli Creek PV in Australia, which is expected to be completed by 2023.
During an event with Saudi Crown Prince Mohammed Bin Salman in New York City on Tuesday (pictured above), Son said the project will create 100,000 jobs, triple Saudi Arabia’s electricity generation capacity and save $40 billion in power costs. Saudi Arabia is the largest crude exporter in the world, but the kingdom is currently trying to diversify its economy beyond oil. Last month, the government awarded ACWA Power a $302 million deal to build Saudi Arabia’s first utility-scale renewable energy plant.
After the 2011 Fukushima nuclear meltdowns, clean energy projects became one of Son’s passions, with SoftBank also investing in wind and solar energy projects in Mongolia and the Asia Super Grid, an extremely ambitious renewable transmission energy project spanning several Asian countries.
SoftBank’s other deals in Saudi Arabia include a $93 billion tech investment fund that was announced in May 2017, with backing by the Vision Fund and Saudi Arabia’s Public Investment Fund.