SoftBank acquires $375M Ohio plant for AI data center manufacturing

SoftBank Group, the Japanese telecommunications and investment giant, has acquired a Foxconn manufacturing facility in Ohio for $375 million, marking a significant step in the company’s ambitious push into artificial intelligence infrastructure. The acquisition transforms the former electric vehicle plant into a hub for AI data center equipment production, positioning SoftBank as a key player in America’s rapidly expanding AI infrastructure landscape.

This purchase represents more than just a real estate transaction—it’s a strategic move within Stargate, a massive $500 billion joint venture between SoftBank, OpenAI, and Oracle that aims to revolutionize AI computing capacity across the United States. The initiative, announced in January with backing from President Donald Trump, represents one of the largest technology infrastructure investments in American history.

The strategic importance of Ohio

The Ohio facility offers crucial advantages that make it ideal for AI infrastructure development. Modern AI systems require enormous amounts of electrical power to train and operate large language models like those powering ChatGPT and other advanced AI applications. These data centers also need reliable water supplies for cooling the massive server farms that process AI workloads, along with robust telecommunications connections to handle the enormous data flows.

SoftBank has been methodically evaluating potential data center locations across the United States for eight months, prioritizing sites with access to these three critical resources. The Ohio plant, previously used by Foxconn for electric vehicle development, already possesses the power infrastructure and land capacity necessary for what industry experts call “hyperscale” AI operations—massive computing facilities designed to handle the most demanding artificial intelligence applications.

Foxconn Chairman Young Liu confirmed that the Taiwanese electronics manufacturer will continue operating the facility on behalf of SoftBank, noting that the companies have been collaborating on this project for six months. Liu emphasized the urgency surrounding the project, stating that Stargate “can’t wait for too long”—a reference to the intense global competition for AI infrastructure dominance.

Understanding the Stargate initiative

The Stargate program represents an unprecedented collaboration between three technology powerhouses, each bringing distinct capabilities to the venture. OpenAI, the creator of ChatGPT, provides the AI software and research expertise. Oracle contributes its enterprise cloud computing infrastructure and database technologies. SoftBank brings both capital and operational experience in large-scale technology deployments.

The $500 billion investment, planned to unfold over four years, aims to build a comprehensive network of AI data centers across the United States. These facilities will provide the computing power necessary to meet surging demand for artificial intelligence across multiple sectors, including scientific research, healthcare automation, defense applications, and financial services.

SoftBank founder Masayoshi Son has committed $100 billion of his company’s own capital to American AI infrastructure, demonstrating the firm’s confidence in the sector’s growth potential. This commitment represents a significant shift for SoftBank, which has traditionally focused on telecommunications and venture capital investments rather than direct infrastructure development.

The broader AI infrastructure race

The Ohio acquisition reflects a broader global competition for AI computing supremacy. As artificial intelligence applications become more sophisticated and widespread, the infrastructure required to support them has become a critical bottleneck. Training advanced AI models requires specialized computer chips, massive amounts of electricity, and sophisticated cooling systems—all of which must be housed in purpose-built facilities.

The timing of SoftBank’s move is particularly significant given the current AI boom. Companies across industries are racing to implement AI solutions, creating unprecedented demand for computing capacity. Traditional cloud providers like Amazon Web Services and Microsoft Azure are struggling to meet this demand, creating opportunities for new players like the Stargate consortium.

The geographic distribution of these facilities also matters strategically. By building AI data centers across the United States, Stargate aims to reduce latency—the time it takes for data to travel between users and computing resources—while also providing redundancy in case of outages or other disruptions.

Market implications and next steps

This acquisition signals SoftBank’s transformation from a primarily financial investor into a direct operator of critical AI infrastructure. The company’s systematic evaluation of potential sites suggests additional acquisitions may follow, as the Stargate initiative scales toward its $500 billion target.

The partnership structure also creates interesting dynamics in the AI ecosystem. By combining OpenAI’s cutting-edge AI research with Oracle’s enterprise expertise and SoftBank’s capital, Stargate could emerge as a formidable competitor to established cloud computing giants.

For the broader technology industry, the Ohio deal demonstrates how AI infrastructure development is becoming a national priority, with significant government support and private investment flowing into projects that strengthen America’s position in the global AI race. The success or failure of initiatives like Stargate will likely influence how other countries approach their own AI infrastructure strategies.

The converted Ohio facility is expected to begin operations in the coming months, serving as a proving ground for the broader Stargate vision of distributed AI computing power across America.