OpenAI, SoftBank Invest $1B in SB Energy for Texas Data Center

OpenAI and SoftBank Group announced a joint $1 billion investment in SB Energy on Friday, selecting the infrastructure firm to build and operate a major data center in Texas as part of a broader push to expand artificial intelligence capabilities amid surging energy demands.

The companies will each contribute $500 million to support SB Energy's growth as a developer and operator of data centers and power infrastructure. This funding follows SB Energy's $800 million raise last year from Ares Infrastructure Opportunities funds and aligns with the Stargate initiative, a multiyear project aiming to invest up to $500 billion in AI data centers and related facilities across the United States. The initiative, announced in January 2025 and backed by President Donald Trump, involves partners including Oracle and focuses on training and deploying advanced AI models. Stargate's first site is already under construction in Abilene, Texas.

Under the agreement, SB Energy will construct and manage OpenAI's 1.2-gigawatt data center campus in Milam County, Texas, a project first revealed in September 2025. The facility, capable of powering approximately 750,000 U.S. homes, represents a key step...