Foxconn's Ohio manufacturing plant gets purchased by SoftBank, worth $375 million, with Foxconn agreeing to maintain operations and build Stargate AI servers on the premises.
The ambitious Stargate AI infrastructure project, a $500 billion public-private initiative led by SoftBank, OpenAI, Oracle, and Foxconn, is moving forward despite encountering hurdles in site selection and construction.
Announced at the White House in early 2025, the project aims to establish a nationwide network of AI data centers across the U.S., positioning the country as a global leader in AI infrastructure. The project's flagship facilities, such as the one in Abilene, Texas, are already in the works.
SoftBank's Chief Financial Officer has reported delays in the project's progress, attributing them to careful planning of the physical design and funding structure to ensure successful deployment. Despite these delays, SoftBank remains confident that the full build-out will proceed at pace once initial models are finalized and tested.
Foxconn is playing a crucial role in the project by repurposing industrial sites, such as its former EV factory in Ohio, into data center equipment production facilities. This aligns with the broader strategy of transforming traditional industrial assets into AI-grade infrastructure. Oracle has also joined the project, contributing significant AI infrastructure capacity to support OpenAI's computing needs.
The project also involves strategic alliances with NVIDIA and benefits from government support, reflecting the high geopolitical and technological stakes in AI infrastructure leadership. In addition to expanding across the U.S., Stargate has plans for global expansion, including initiatives like Stargate Norway, to build national AI data centers worldwide.
In a significant development, SoftBank is currently evaluating multiple locations for data centers, including the Lordstown, Ohio, plant, which was originally acquired by Foxconn from Lordstown Motors in 2022. If selected, the Ohio facility will be retrofitted to build AI servers and other gear to equip Stargate AI data centers. The Ohio facility could exclusively produce infrastructure components used by SoftBank, Oracle, and OpenAI.
Foxconn sold its production facility in Lordstown, Ohio, to SoftBank earlier this month, a move that almost guarantees a steady flow of orders for the Ohio facility. The new Ohio base will become another important production center in Foxconn's network.
The Stargate project was introduced by OpenAI, Oracle, and SoftBank in January 2022, with Masayoshi Son, the head of SoftBank, pledging $100 billion for data centers, energy facilities, and related projects. The Ohio complex could become the first manufacturing base linked directly to Stargate.
Foxconn is increasing its capacity in multiple regions, including building up operations in Houston, Texas. The Lordstown, Ohio, site spans 6.2 million square feet and is six times larger than Foxconn's Houston facility. This vast space offers ample room for further expansion, a key consideration in the decision to arrange the site for Stargate.
SoftBank denies that access to funding is a problem for the Stargate project. Factors considered by SoftBank for data center locations include energy supply, water resources, and telecommunications infrastructure. The decision for the arrangement was driven by these factors, along with the available power capacity, large land area, and urgency to move quickly on the Stargate schedule.
In summary, the Stargate AI infrastructure project is progressing, albeit slowly, with active manufacturing preparations by Foxconn and key partners like Oracle providing infrastructure support. The project's future plans include a nationwide U.S. AI data center build-out over 4-5 years with an investment target of $500 billion, global expansion with additional data centers internationally, and full operational scaling once initial models succeed. This project is pivotal in addressing the infrastructure bottleneck in AI development by delivering unmatched scale, computational power, and capital alignment for the U.S. and its allies.
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