Sharp's production base in Sakai, Osaka Prefecture, once renowned as the world's most advanced factory for large LCD television panels, will be transformed into a massive data center to handle the enormous volume of data for artificial intelligence applications, according to recent announcements by Japan’s two major mobile carriers.

SoftBank announced on Friday that it has reached a basic agreement with Sharp to construct an AI data center at the Sakai plant site.

Struggling to make its LCD business profitable, Sharp previously announced it would end production at the Sakai plant by September.