SB Energy, a SoftBank Group company, announced a transformative strategic partnership with OpenAI as part of the Stargate initiative, marking a major development in the deployment of next-generation artificial intelligence (AI) and energy infrastructure across the United States.
Under the agreement, OpenAI and SoftBank Group are each investing $500 million, contributing to a $1 billion capital commitment that will bolster SB Energy’s growth as a premier development and execution partner for large-scale data center campuses. This effort builds on the previously announced $500 billion Stargate commitment unveiled earlier in January at the White House.
As part of the collaboration, OpenAI has signed a 1.2 gigawatt (GW) data center lease for its initial buildout at the Milam County site in Texas, with SB Energy selected to both construct and operate the facility. In addition to funding, the deal positions SB Energy as a key customer of OpenAI, integrating OpenAI’s APIs and deploying ChatGPT for internal use.
The partnership also formalizes a non-exclusive preferred collaboration model designed to combine OpenAI’s first-party data center design capabilities with SB Energy’s proven expertise in rapid execution, cost-discipline, and integrated energy delivery to scale purpose-built AI infrastructure efficiently.
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Commentary from Leadership
OpenAI co-founder and president Greg Brockman emphasized the strategic value of the collaboration, stating: “Partnering with SB Energy brings together their strength in data center infrastructure and energy development and OpenAI’s deep domain expertise in data center engineering. The result is a fast, reliable way to scale compute through large, highly optimized AI data centers.”
SB Energy co-CEO Rich Hossfeld underscored how the alliance accelerates critical infrastructure deployment: “SB Energy’s strategic partnership with OpenAI accelerates our delivery of advanced AI data center campuses and associated energy infrastructure at the scale required to advance Stargate and secure America’s AI future. We are grateful for our longstanding sponsor SoftBank Group and new partner OpenAI for their investment in our platform, our team, and our long-term vision.”
In addition, SB Energy co-CEO Abhijeet Sathe highlighted the significance of recent organizational enhancements: “Over the past 18 months, SB Energy and OpenAI have worked closely with Studio 151 across multiple data center projects, and their technical expertise and execution discipline has been exceptional. Bringing these capabilities in-house strengthens our ability to deliver repeatable campuses at scale and with certainty.”
Community and Economic Impact
SB Energy’s Milam County Data Center project is expected to generate thousands of construction jobs, stimulate workforce development, and support grid modernization across local communities. The facility design incorporates measures to minimize water usage and includes plans for additional generation capacity to support its energy needs while safeguarding Texas ratepayers.
To further enhance SB Energy’s capabilities, the company recently acquired Studio 151, a data center construction management, procurement, engineering, and operations firm with a strong track record across 20 campus projects. This strategic acquisition strengthens SB Energy’s in-house development, construction, and operational expertise, positioning the company for accelerated execution.
