Foxconn plans to manufacture data center equipment with SoftBank at its former EV factory in Ohio as part of the Stargate project to develop US AI infrastructure.

SoftBank acquired the Lordstown site from Foxconn, and the two companies will create a joint venture to operate the facility, Foxconn chairman Young Liu said.

Earlier in August, Foxconn announced a US$375 million deal to sell the factory and machinery but did not disclose the buyer at the time.

Preparatory work for the project began over six months ago, according to Liu.

He said that Ohio was chosen for its power capacity, available site, and timeline, noting that SoftBank agreed with the location decision.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Established partnerships reduce execution risk in complex infrastructure projects

The Foxconn-SoftBank collaboration builds on nearly a decade of joint ventures, suggesting lower partnership risk than typical new alliances.

The companies first partnered in 2015 for renewable energy projects in India through SBG Cleantech, then established a broader investment joint venture in 2017 where Foxconn invested $600 million for a 54.5% stake in SoftBank’s Singapore asset management company12.

This track record becomes particularly valuable given the scale of the Stargate project, where SoftBank, OpenAI, and Oracle plan to invest up to $500 billion in AI infrastructure.

Their early preparatory work starting over six months ago also demonstrates the methodical approach both companies take to complex projects, rather than rushing into high-stakes ventures.

2️⃣ Ohio’s data center boom creates infrastructure bottlenecks that smart operators plan around

Ohio’s rapid emergence as a data center hub has created significant power infrastructure challenges that explain why the Foxconn-SoftBank partnership prioritized early preparation.

The state ranks fourth nationally with 172 data centers, but AEP Ohio has been forced to halt new service agreements due to capacity constraints, with over 50 customers seeking more than 30,000 megawatts of power3.

Recent regulatory changes now require large data center customers to pay for at least 85% of their subscribed energy capacity, a rule designed to ensure infrastructure costs don’t fall on other utility customers4.

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