Quick Brief
- $1B Investment: OpenAI and SoftBank each invested $500M in SB Energy (January 9, 2026) to build AI data centers under the $500B Stargate project
- 1.2 GW Texas Facility: SB Energy is constructing a massive data center in Milam County with power capacity equal to 800,000 homes—operations start 2026
- Strategic Partnership: SB Energy becomes OpenAI’s preferred data center partner, combining OpenAI’s engineering with SB Energy’s infrastructure expertise to accelerate AI compute buildout
OpenAI and SoftBank Group announced a $1 billion joint investment in SB Energy on January 9, 2026, advancing the massive Stargate AI infrastructure initiative. Each company will invest $500 million to develop next-generation data center campuses and energy infrastructure across the United States. SB Energy will build and operate OpenAI’s 1.2 gigawatt (GW) data center in Milam County, Texas, with facilities expected to start operations in 2026.
What’s New
OpenAI selected SB Energy as its primary partner for data center development under the $500 billion Stargate project originally announced at the White House in January 2025. The partnership combines OpenAI’s data center engineering expertise with SB Energy’s infrastructure development capabilities to accelerate AI compute buildout.
SB Energy, a SoftBank Group company, secured an additional $800 million in redeemable preferred equity from Ares to support expansion. The company is currently developing several multi-gigawatt data center campuses, with initial facilities already under construction.
The companies formed a non-exclusive preferred partnership to create a new model for data center builds that integrates OpenAI’s first-party design with SB Energy’s proven speed and cost discipline. SB Energy recently acquired Studio 151, a data center construction and operations firm with experience across 20 campuses, to strengthen in-house capabilities.
Why It Matters
The investment addresses the surging demand for AI compute infrastructure as companies race to train and deploy large language models. Data centers require massive power capacity OpenAI’s Milam County facility alone will consume 1.2 GW, enough to power roughly 800,000 homes.
This deal solidifies SB Energy as a critical execution partner for Stargate, which aims to deploy 10 gigawatts of AI data center capacity by year-end 2025. As of September 2025, Stargate had secured nearly 7 gigawatts across multiple sites, putting the initiative ahead of schedule.
SB Energy will become a major OpenAI customer, leveraging its APIs and deploying ChatGPT for employees. The partnership creates thousands of construction jobs in Texas and establishes a blueprint for community investment through workforce development and grid modernization.
Stargate Project Overview
Stargate was announced by President Donald Trump on January 21, 2025, as a $500 billion AI infrastructure venture led by OpenAI, SoftBank, Oracle, and MGX. Key details include:
- Initial funding: $100 billion committed upfront, scaling to $500 billion by 2029
- Leadership: SoftBank CEO Masayoshi Son serves as chairman
- Scope: 10 gigawatts of data center capacity across the United States
- Timeline: Full deployment targeted by end of 2025, with some facilities operational in 2026
- Technology partners: Arm, Microsoft, NVIDIA, Oracle, and OpenAI
The initiative has been compared to the Manhattan Project due to its scale and national significance. Trump characterized it as essential for maintaining U.S. leadership in AI against competitors like China.
In July 2025, OpenAI and Oracle entered a separate agreement to develop up to 4.5 GW of additional Stargate capacity, representing over $300 billion in partnership value over five years. Five new U.S. data center sites were announced in September 2025, including locations in Texas, New Mexico, and the Midwest.
Milam County Data Center Details
The Milam County facility represents OpenAI’s first major data center lease under Stargate. SB Energy broke ground on the Texas site in September 2025.
Key specifications:
- Capacity: 1.2 GW critical IT load
- Water efficiency: Designed to minimize water usage
- Energy source: New generation planned to protect Texas ratepayers
- Jobs: Thousands of construction positions
- Operator: SB Energy handles build and operations
OpenAI and SB Energy designed the facility to meet sustainability standards while addressing Texas grid concerns. The companies plan to build dedicated power generation rather than relying solely on existing grid capacity.
What’s Next
SB Energy’s multi-gigawatt campus developments will continue through 2026, with initial facilities entering service this year. The partnership model established with OpenAI may extend to additional Stargate sites as the project expands nationally.
OpenAI must finalize formal agreements for remaining Stargate locations across the United States. The initiative is evaluating sites beyond Texas and New Mexico to distribute data center capacity.
SB Energy’s acquisition of Studio 151 positions the company to scale operations quickly across multiple simultaneous projects. The $800 million Ares investment provides additional capital for expansion beyond the OpenAI partnership.
Industry observers are watching whether the accelerated timeline and scale of Stargate will strain energy infrastructure or face regulatory challenges, though Trump has pledged to use emergency declarations to expedite development.
Featured Snippet Boxes
What is the OpenAI SB Energy partnership?
OpenAI and SoftBank Group each invested $500 million in SB Energy, totaling $1 billion, to develop AI data centers under the Stargate initiative. SB Energy will build and operate OpenAI’s 1.2 GW Milam County data center and serve as a preferred partner for future projects.
How much power does a 1.2 GW data center use?
A 1.2 gigawatt data center consumes roughly the same electricity as 800,000 average U.S. homes. This massive power requirement necessitates dedicated energy infrastructure and new generation capacity to avoid straining existing electrical grids.
When will the Milam County data center open?
SB Energy broke ground on the Milam County facility in September 2025, with operations expected to begin in 2026. The exact launch date has not been publicly announced, but construction is currently underway.
What is the Stargate project?
Stargate is a $500 billion AI infrastructure venture announced in January 2025 by OpenAI, SoftBank, Oracle, and MGX. The initiative aims to build 10 gigawatts of data center capacity across the United States by 2029 to maintain AI leadership.
