SB Energy to Build and Operate OpenAI's 1.2GW Stargate Data Center in Texas

SB Energy to Build and Operate OpenAI's 1.2GW Stargate Data Center in Texas January 12, 2026 In a major move to secure the immense power and infrastructure required for next-generation artificial intelligence, OpenAI has selected SoftBank subsidiary SB Energy to build and operate its flagship 1.2-gigawatt Stargate data center in Milam County, Texas. The partnership underscores the critical convergence of advanced computing and large-scale energy development in the AI era, where data centers are evolving into power-intensive industrial campuses. Under the agreement announced this week, SB Energy will be responsible for the project's powered infrastructure. To support this ambitious undertaking and SB Energy's broader growth, both OpenAI and its long-time investor SoftBank Group are committing a combined $1 billion in equity financing to the company, with each contributing $500 million. This capital infusion is earmarked for expanding SB Energy's development pipeline, which includes powering other major facilities, such as the trio of Texas solar projects it announced in 2024 to support Google's data center operations. The collaboration extends beyond a single build. The companies have formed a non-exclusive preferred partnership to pioneer a new model for AI data center construction. This model aims to integrate OpenAI's first-party data center design expertise with SB Energy's capabilities in integrated energy delivery to create purpose-built, highly optimized campuses. OpenAI co-founder and president Greg Brockman stated, “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.” The 1.2GW Texas facility is the first named project under the sprawling Stargate initiative, which OpenAI launched in January of last year alongside partners SoftBank, Oracle, and Abu Dhabi's MGX. The initiative initially outlined a staggering $500 billion investment plan over four years to build a global network of AI infrastructure. Subsequent announcements have revealed plans for five additional U.S. data centers across Texas, New Mexico, and the Midwest, with a combined capacity of up to 5.5GW. SB Energy co-CEO Rich Hossfeld emphasized the strategic importance, saying, “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.” This deal signals a strategic shift for SB Energy, a company founded in 2011 and historically focused on developing utility-scale solar and battery storage projects. Its direct entry into data center development and operations, backed by a leading AI pioneer, positions it as a key player in the emerging market for turnkey, energy-integrated AI infrastructure. The partnership sets a new benchmark for the scale of individual AI compute facilities and highlights the growing necessity for hyperscalers and AI firms to directly partner with specialized energy developers to meet their unprecedented power demands. Source: datacenterdynamics