OpenAI and SoftBank Invest $1 Billion in SB Energy for U.S. AI Data Centers
OpenAI and SoftBank Group Corp. are partnering with SB Energy to build next-generation AI data centers and energy infrastructure in the United States, announced in a press release. The companies are jointly investing $1 billion—$500 million each—into SB Energy as part of the Stargate initiative, which follows a previously announced $500 billion national AI infrastructure plan.
As part of the agreement, OpenAI has selected SB Energy to build and operate a 1.2 gigawatt data center in Milam County, Texas. Construction is already underway, with operations expected to begin in 2026. The facility is designed to minimize water usage and will be supported by new energy generation projects to meet its power needs.
The collaboration also establishes a preferred development model combining OpenAI’s data center design expertise with SB Energy’s experience in energy and construction. SB Energy recently expanded its in-house capabilities through the acquisition of Studio 151, a data center construction and engineering firm with experience across 20 campuses.
In addition to OpenAI and SoftBank’s investment, Ares Infrastructure Opportunities funds have provided $800 million in preferred equity to support SB Energy’s continued growth in large-scale data center infrastructure.
We hope you enjoyed this article
Consider subscribing to one of our newsletters like Enterprise AI Brief, Silicon Brief or Daily AI Brief.
Also, consider following us on social media:
More from Enterprise
Oct 16 McGraw Hill Adds AI Study Tools to Connect Oct 16 RapidCanvas Raises $29 Million to Expand Enterprise AI Platform Oct 16 Goodweek Raises $12 Million for AI Management Platform Oct 16 ALTOUR Unveils AI Platform for Corporate Travel Decisions Oct 16 BOC Group Adds AI Assistant to ADOIT 21More from Data Centers
Oct 16 EverWind Plans 420 Megawatt AI Data Centre in Nova Scotia Oct 16 Gartner Says $3.5 Trillion in AI Infrastructure Spending Faces Impairment Risk by 2030 Oct 16 KBRA Rated Anthropic BB+ Before $35 Billion Chip Financing Oct 16 China Proposes Export Controls for Advanced AI Models and Chips Oct 16 Hitachi Energy and Ansaldo Energia Partner on Data Center Power SystemsEnterprise AI Brief
Weekly report on AI business applications, enterprise software releases, automation tools, and industry implementations.
Industry analysis
2025 Global Business Services Agenda: Gen AI Takes Center Stage
This industry analysis by The Hackett Group explores the transformative impact of generative artificial intelligence (Gen AI) on global business services (GBS) in 2025. The study highlights the shift from exploration to acceleration of Gen AI initiatives, with 89% of executives advancing these projects to improve customer satisfaction, innovate products, and reduce costs. The report also discusses the challenges and strategies for successful Gen AI adoption, emphasizing the need for a technology-enabled operating model and the importance of reskilling the workforce.
Read moreYou may also like
US and South Korea Back $22.3 Billion Texas Data Center Power Campus
Rising rates strain AI data center fundraising
Anthropic Signs Lease for 2.16 Gigawatt Australian Data Centre
Zone Frontier Leases 4,077 Acres for Texas AI Data Center
OpenAI and America's SBDC Plan AI Training for 1,000 Small Businesses
Daily AI Brief: the AI news that matters, in your inbox.