SoftBank Buys Foxconn Plant for Stargate AI Data Center Push
SoftBank Group Corp. has acquired Foxconn Technology Group’s electric vehicle manufacturing facility in Ohio, a strategic move designed to accelerate the Japanese conglomerate’s ambitious $500 billion “Stargate” data center initiative. This acquisition signals a significant step towards realizing SoftBank’s vision for a nationwide network of advanced AI data centers and related infrastructure across the United States, a project being developed in collaboration with OpenAI and Oracle Corp.
The decision to purchase the Ohio plant emerged from SoftBank’s proactive engagement with Foxconn, the prominent Apple Inc. supplier. Sources close to the discussions, who requested anonymity due to the private nature of the negotiations, indicated that SoftBank had approached Foxconn to enlist its support for the Stargate project. The sale of the electric vehicle plant is a direct outcome of these efforts, allowing SoftBank to secure a substantial industrial footprint crucial for its AI infrastructure development.
While the acquisition marks a tangible step forward, SoftBank is still in the process of formulating a comprehensive financial blueprint for the colossal Stargate undertaking. This project is central to SoftBank founder Masayoshi Son’s latest grand vision, aiming to establish an unparalleled foundation for artificial intelligence computing power. The scale of the proposed investment, half a trillion dollars, underscores the company’s belief in the transformative potential of AI and the critical need for robust, dedicated infrastructure to support its rapid advancement.
The Ohio facility, previously a General Motors assembly plant in Lordstown before Foxconn acquired it with plans for EV production, represents a significant industrial asset. Its repurposing from vehicle manufacturing to a hub for AI data centers highlights a broader trend of companies adapting existing industrial real estate for the burgeoning demands of the digital economy. For SoftBank, securing such a large-scale site is paramount to housing the immense computing power and cooling systems required for next-generation AI models. This strategic pivot by SoftBank underscores the intense global race to build the foundational infrastructure necessary for the AI era, where access to vast computational resources is becoming a defining competitive advantage.