SoftBank Acquires Foxconn's Ohio Plant for AI Server Manufacturing

SoftBank is reportedly buying Foxconn's Lordstown, Ohio plant, which was previously owned by General Motors. The site will be used to manufacture AI servers as part of the Stargate data center project led by SoftBank, OpenAI, and Oracle. This deal highlights SoftBank's investment in AI and data center infrastructure, positioning the company for growth in the tech sector.

Title: SoftBank Acquires Foxconn's Ohio Plant for Stargate Data Center Project

SoftBank is reportedly acquiring Foxconn's Lordstown, Ohio plant, previously owned by General Motors, to manufacture AI servers as part of the Stargate data center project. The acquisition, which has not been officially confirmed by either party, is part of SoftBank's broader strategy to establish a significant data center complex in the United States [1].

The deal involves SoftBank purchasing the Ohio plant, which spans 6.2 million square feet, for $375 million. The site was previously sold under the name ‘Crescent Dune LLC’ to SoftBank [2]. The acquisition is seen as a key step in SoftBank's plans to involve Foxconn in the Stargate project, which aims to create a robust AI infrastructure [3].

The Ohio site may be repurposed to host a data center as part of the Stargate initiative, aligning with SoftBank's broader vision to build data centers and related infrastructure throughout the U.S. The acquisition comes after U.S. President Donald Trump announced the Stargate project in January, a private sector investment of up to $500 billion for AI infrastructure [3].

The construction of the first Stargate data center is currently underway in Abilene, Texas. The Abilene campus is being developed by Crusoe in partnership with Oracle, on land owned by Lancium, and is expected to eventually have eight buildings and a total of 1.2GW of capacity [3]. Phase I of the Abilene project, featuring two buildings and more than 200MW, began in June 2024 and was expected to be energized in the first half of 2025, while the second phase, consisting of six more buildings and another gigawatt of capacity, began in March 2025 and is expected to be energized in mid-2026 [3].

Despite the ambitious goals, the project has faced some challenges. In July 2024, the Wall Street Journal reported that SoftBank's CEO, Masayoshi Son, and OpenAI leader Sam Altman have clashed over the terms of the partnership deal, including where to build the data centers [3]. Despite these challenges, the project is expected to create significant economic and technological benefits.

The acquisition of the Ohio plant is part of a broader trend in the tech industry, where companies are investing heavily in data centers to support their AI and cloud computing initiatives. SoftBank's Stargate project is one of the largest such initiatives, with a projected investment of $500 billion [3].

References:
[1] https://www.datacenterdynamics.com/en/news/softbank-named-as-buyer-of-foxconn-ohio-factory-site-could-eventually-host-a-stargate-data-center-report/
[2] https://www.startupecosystem.ca/news/softbank-acquires-foxconn-ohio-plant-for-stargate-ai-project/
[3] https://www.ainvest.com/news/softbank-acquires-foxconn-ohio-plant-jumpstart-stargate-ai-project-2508/