SB Energy will build and operate a 1.2-gigawatt data center in Texas, a facility previously revealed by OpenAI. The company will also integrate OpenAI’s APIs and deploy ChatGPT to support employee workflows.

The Stargate initiative, valued at $500 billion, aims to develop specialized data centers for AI training and operations. Major investors, including Oracle, back the project, which received support from former U.S. President Donald Trump when announced in January 2025.

Tech companies are increasingly investing in energy infrastructure to meet growing power demands from expanding data centers. SB Energy said it is developing multiple campuses, with the first expected to begin operations this year.

Rich Hosfeld, co-CEO of SB Energy, said the partnership will accelerate the development of advanced AI data centers and the energy systems needed to support the Stargate project and future AI growth in the U.S.

The data center sector has seen rapid expansion, with firms such as Meta investing heavily in semiconductors, cooling systems, servers, and energy infrastructure.

Meanwhile, OpenAI faces rising operational costs amid growing competition with Google. CEO Sam Altman reportedly informed staff late last year that the company was in "red alert” mode, focusing on improving ChatGPT while delaying other product launches in response to Google’s Gemini project.