KEY POINTS
- OpenAI and SoftBank each committed $500 million to SB Energy.
- SB Energy will build a 1.2-gigawatt data center campus in Texas.
- The deal aligns with OpenAI’s broader Stargate infrastructure plan.
OpenAI and SoftBank Group Corp. have committed a combined $1 billion to SB Energy, adding momentum to a wave of investment aimed at securing electricity and infrastructure for the rapid buildout of artificial intelligence across the United States.
Under the agreement, OpenAI and SoftBank will each invest $500 million in SB Energy, according to people familiar with the transaction. The companies did not disclose a valuation. The funding positions SB Energy to expand its role as a developer and operator of large-scale data center campuses at a time when access to reliable power is shaping where and how AI systems can grow.
The investment comes as power demand from data centers rises at its fastest pace in decades. As companies deploy larger and more complex AI models, electricity supply has moved from a background concern to a central constraint. Tech firms are now pursuing direct stakes in power generation, long-term supply contracts, and infrastructure partners that can deliver capacity at scale.
Texas campus anchors deal
As part of the agreement, OpenAI has selected SB Energy to build and operate a 1.2-gigawatt data center campus in Milam County, Texas. A facility of that size could supply electricity equivalent to the needs of roughly 750,000 U.S. homes, according to OilPrice. The project highlights how closely AI ambitions are now tied to access to land, transmission lines, and steady power.
SB Energy has spent years assembling sites that can support multi-gigawatt developments. Long associated with SoftBank, the company started as a renewable energy and storage developer before shifting toward owning and operating data center campuses. That pivot has drawn investor interest as hyperscalers search for partners that can move quickly through permitting and construction.
The new capital follows $800 million SB Energy raised last year from funds managed by Ares Infrastructure Opportunities. The company is advancing several large projects across the U.S., betting that demand from cloud providers and AI developers will absorb the capacity.
Part of a bigger AI buildout
The deal also fits into OpenAI’s broader Stargate initiative, which includes SoftBank and Oracle Corp. The group has outlined plans to spend up to $500 billion over four years on AI data centers and related infrastructure. Stargate’s first site is already under construction in Abilene, Texas.
Other technology firms are making similar moves. Meta Platforms Inc. said on Friday that it had reached agreements that could secure more than 6 gigawatts of nuclear power for its data centers. Such commitments reflect how energy sourcing has become a strategic decision rather than a utility purchase.
At the same time, the scale of spending has prompted questions about concentration risk. If AI adoption slows or falls short of current projections, developers could face underused assets tied to long-term power commitments.
