OpenAI and SoftBank are deepening their push into AI data center infrastructure through SB Energy, as the companies scale compute and energy capacity across the United States. The collaboration operates under the Stargate initiative, which the partners announced earlier this year with a $500 billion investment ambition. As AI workloads accelerate, the alliance aims to move faster from capital to capacity.
Under the deal, OpenAI and SoftBank Group will each invest $500 million in SB Energy. Together, the partners plan to channel the funding into new AI-focused data center projects, responding to surging demand for large-scale compute.
Texas Project Anchors the Expansion
As a first step, SB Energy will build and operate OpenAI’s 1.2-gigawatt data center campus in Milam County, Texas. Once completed, the site will rank among the largest AI data centers in the United States.
Meanwhile, SB Energy is advancing several multi-gigawatt campuses nationwide. Construction has already begun at initial sites, and operations are scheduled to start in 2026. With the new capital in place, the company expects timelines to compress and execution to accelerate.
OpenAI president and co-founder Greg Brockman said the partnership combines engineering depth with infrastructure delivery at scale. As a result, OpenAI expects to expand compute capacity more rapidly.
New Development Model Takes Shape
Alongside the investment, the companies formed a non-exclusive preferred partnership to develop a new model for AI data center construction.
Under this structure, OpenAI will deliver first-party facility designs, while SB Energy will oversee construction, power integration, and cost management. Consequently, projects should move more quickly from design to deployment.
Beyond infrastructure, the partners also plan to invest in surrounding communities. Workforce training programs will expand, grid upgrades will move forward, and long-term job creation will remain a central focus.
SB Energy co-CEO Rich Hossfeld said the partnership strengthens the company’s ability to deliver capacity at scale. He added that the effort directly supports Stargate’s broader objectives.
Water Use and Power Supply in Focus
The Milam County campus is expected to generate thousands of construction jobs. Importantly, the facility incorporates design features aimed at limiting water consumption, a growing concern for large-scale data centers.
In parallel, SB Energy plans to develop new power generation to support the site. The strategy aims to meet energy demand while easing pressure on the local grid.
To reinforce execution, SB Energy recently acquired Studio 151, a firm specializing in data center construction and operations. The company has delivered more than 20 campuses. As a result, SB Energy now brings engineering, procurement, and delivery capabilities fully in-house.
SB Energy co-CEO Abhijeet Sathe said Studio 151 has already supported several joint projects. According to Sathe, the integration improves certainty around cost, timelines, and delivery.
Institutional Capital Supports Growth
The latest investment builds on prior institutional backing. In 2025, Ares Infrastructure Opportunities invested $800 million in redeemable preferred equity, marking its third investment in SB Energy since 2020.
Taken together, the partnership underscores accelerating capital flows into AI infrastructure. As demand for compute rises, data centers and energy systems continue to anchor the next phase of AI expansion.
