SoftBank To Invest $3 Billion In Ohio Factory For OpenAI Data Centers As It Looks To Advance $500 Billion Stargate Project: Report

• The Ohio facility will build modular data centers using portable, pre-assembled units, enabling faster deployment and scalability.
• It will also include a small working data center for demonstration purposes.
• The manufacture of modular data centers at the Ohio facility is expected to begin later this year.

SoftBank Group Corp. (SFTBY) is reportedly planning to invest $3 billion in an Ohio factory to manufacture equipment for OpenAI data centers.

According to a Reuters report citing The Information, the investment will be used to overhaul an electric vehicle factory in Lordstown, Ohio.

This is part of the $500 billion Stargate project, for which OpenAI and SoftBank pledged $18 billion each in January to get the venture started.

OpenAI is not publicly listed. Retail sentiment on Stocktwits around the company trended in the ‘neutral’ territory at the time of writing.

What Will Ohio Factory Make?

According to the report, following an overhaul, the Ohio facility SoftBank is investing in will build modular data centers with portable, pre-assembled units, enabling faster deployment and scalability. The facility will also include a small working data center for demonstration purposes.

The manufacture of modular data centers at the Ohio facility is expected to begin later this year, the report added.

Stargate Project Updates

In a September update, OpenAI announced that it, along with SoftBank and Oracle Corp. (ORCL), will build five new data centers as part of the Stargate Project.

OpenAI said that with these five new data centers, along with the flagship site in Abilene, Texas, and the company’s ongoing projects with CoreWeave, it brings the total planned capacity of Stargate to seven gigawatts, with an investment outlay of more than $400 billion over the next three years.

“This puts us on a clear path to securing the full $500 billion, 10-gigawatt commitment we announced in January by the end of 2025, ahead of schedule,” the company said.

Also See: Dow Turns Red, Loses Over 600 Points Of Early Morning Gains As Nvidia Rally Fizzles Out, Rate Cut Concerns Gather Steam

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