OpenAI and SoftBank commit $1bn to SB Energy as 1.2GW Texas data centre moves ahead
The deal pairs large-scale energy-backed infrastructure with frontier AI demand, as OpenAI secures long-term compute capacity and SB Energy accelerates multi-gigawatt campus development in the United States.
OpenAI and SoftBank Group are investing a combined $1 billion in SB Energy, alongside OpenAI signing a lease for a 1.2 gigawatt data centre site in Milam County, Texas, in one of the largest infrastructure commitments yet tied directly to artificial intelligence.
Under the agreement, OpenAI and SoftBank Group will each invest $500 million into SB Energy. OpenAI said it has selected SB Energy to build and operate the previously announced Milam County data centre, which will form part of its long-term strategy to secure reliable, large-scale compute capacity for advanced model training and deployment.
SB Energy will also become a significant customer of OpenAI, using its application programming interfaces and rolling out ChatGPT internally for employees. The arrangement creates a two-way commercial relationship in which OpenAI is both an anchor tenant and a technology supplier.
To support expansion, SB Energy has secured an additional $800 million in redeemable preferred equity from Ares. The company said it is developing several multi-gigawatt data centre campuses, with initial facilities already under construction and expected to begin entering service from 2026.
Greg Brockman, co-founder and president of OpenAI, said the partnership addresses the growing infrastructure bottleneck facing frontier AI. “Partnering with SB Energy brings together their strength in data centre infrastructure and energy development and OpenAI’s deep domain expertise in data centre engineering,” he said. “The result is a fast, reliable way to scale compute through large, highly optimised AI data centres.”
SB Energy co-chief executive Rich Hossfeld said the collaboration supports both commercial growth and strategic objectives. “SB Energy’s strategic partnership with OpenAI accelerates our delivery of advanced AI data centre campuses and associated energy infrastructure at the scale required to advance Stargate and secure America’s AI future,” he said, adding that the company values the backing of SoftBank Group and OpenAI for its long-term vision.
The partners said they have formed a non-exclusive preferred partnership that combines OpenAI’s first-party data centre design with SB Energy’s execution and energy expertise. The Milam County site is expected to generate thousands of construction jobs, with a design intended to minimise water usage. The companies also plan to build new power generation to support the facility’s energy needs, aiming to avoid placing additional strain on existing Texas electricity customers.
The deal underlines how the expansion of artificial intelligence is increasingly tied to energy development and heavy infrastructure investment, as leading AI developers move to lock in the physical foundations required to sustain future growth.
The Recap
- OpenAI and SoftBank invest $1 billion into SB Energy.
- OpenAI signs a 1.2 GW data center lease.
- Initial SB Energy facilities expected to enter service in 2026.
