OpenAI and SoftBank Group have made a significant investment in SB Energy, committing $1 billion to enhance the development of next-generation AI data centers. This partnership, announced on January 9, 2026, aims to bolster the infrastructure necessary for the growing demand for artificial intelligence computing in the United States.
As part of the collaboration, OpenAI has signed a lease for a 1.2 gigawatt data center in Milam County, Texas, which will serve as the initial site for the new data center buildout. This marks a pivotal step in the ongoing development of the Stargate initiative, which was introduced earlier this year with a $500 billion commitment at the White House.
Investment Details and Strategic Goals
Both OpenAI and SoftBank Group are investing $500 million each into SB Energy, positioning the company as a leading partner for data center campuses and associated energy infrastructure. This funding aligns with SB Energy’s plans to construct several multi-gigawatt data center campuses, with initial projects scheduled to become operational starting in 2026.
OpenAI’s co-founder and President, Greg Brockman, emphasized the synergy between the two organizations, 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.” He highlighted the partnership’s potential to create highly optimized AI data centers that can scale effectively and efficiently.
SB Energy’s co-CEO, Rich Hossfeld, also underscored the importance of this partnership, noting that it accelerates the delivery of advanced AI data center campuses essential for the success of the Stargate project. Hossfeld expressed gratitude towards both SoftBank Group and OpenAI for their investments in SB Energy’s vision and capabilities.
Community Impact and Future Growth
As part of this collaboration, the companies aim to implement a non-exclusive preferred partnership model. This approach combines OpenAI’s innovative data center design with SB Energy’s expertise in efficient construction and integrated energy solutions. The goal is to develop purpose-built AI infrastructure at scale while supporting local communities through job creation and economic development.
The Milam County data center is expected to generate thousands of construction jobs, contributing to regional economic growth. SB Energy has committed to sustainable practices, including minimizing water usage at the facility and plans to establish new power generation to support its energy needs while safeguarding Texas ratepayers.
Furthermore, SB Energy’s recent acquisition of Studio 151, a company specializing in data center construction management and operations, enhances its in-house capabilities. This strategic move comes after 18 months of collaboration between SB Energy and OpenAI on various projects, reflecting a shared commitment to executing data center initiatives with precision and expertise. SB Energy’s co-CEO, Abhijeet Sathe, noted that this acquisition strengthens their ability to deliver scalable data center campuses with certainty.
Prior to this partnership, SB Energy secured $800 million in redeemable preferred equity from Ares Infrastructure Opportunities in 2025, further solidifying its financial foundation for growth. This investment marks the third financing from Ares since 2020, underscoring a robust relationship between the two entities.
SB Energy, which was founded in 2019, aims to provide reliable data center and power infrastructure that will enhance the future of technology in America. With a comprehensive approach to project development, construction, and asset management, SB Energy is poised to play a critical role in advancing the nation’s AI capabilities.
For more information about SB Energy, visit their website at SBEnergy.com.