PIKETON, Ohio – SoftBank Group Corp. Is planning a massive data center project in Piketon, Ohio, that CEO Masayoshi Son says will represent a $500 billion investment. The scale of the proposed facility, built on the site of a former uranium enrichment complex owned by the U.S. Department of Energy, has drawn both excitement and skepticism, with some industry experts questioning the feasibility of such a large undertaking.
Commerce Secretary Howard Lutnick, alongside Son and Energy Secretary Chris Wright, described the project as “the largest construction project in the country” during a visit to the site Friday. The initial phase of the project is expected to cost between $30 billion and $40 billion, delivering approximately 800 megawatts of power by early 2028, according to SoftBank. This ambitious plan comes roughly 14 months after Son, OpenAI’s Sam Altman and Oracle’s Larry Ellison initially pledged $500 billion towards data centers and AI infrastructure through the “Stargate” venture.
The demand for data centers is surging globally, fueled by the rapid expansion of artificial intelligence tools and the enormous computing capacity they require. However, this growth is not without its challenges. Communities across the U.S. Are increasingly voicing concerns about the strain on resources like water and electricity, both essential for operating these large-scale facilities. The Ohio project, requiring an estimated $33 billion in natural gas-fired electricity, is already facing scrutiny regarding its energy source and potential environmental impact.
A Former Uranium Plant Transformed
The chosen location, a 3,700-acre plot in Piketon, about 70 miles south of Columbus, offers existing infrastructure, including high-voltage power lines, which could expedite the construction process. The site’s history as a uranium enrichment plant, once a major employer in the region, adds another layer to the project’s complexity. The Trump administration, according to an Energy Department official, envisions a reuse of the land, evolving from a farm to a uranium facility and now potentially a hub for AI computing.
The project’s scale is truly immense. A 10-gigawatt data center, as proposed by SoftBank, would be among the largest in the world. For context, a single gigawatt of electricity can power roughly 750,000 homes. Ohio currently has a total electricity generation capacity of approximately 30 gigawatts, making the proposed project a significant addition to the state’s power grid. To set that in perspective, a 3.75-gigawatt natural gas-fired power complex in Florida, one of the largest in the U.S., took years to build and bring online in phases.
Powering the Future: Natural Gas and Turbine Delivery
SB Energy, a SoftBank-backed company, is responsible for the power component of the project. Rich Hossfeld, co-chief executive officer of SB Energy, stated that turbines capable of generating 9.2 gigawatts have already been sourced. The first turbines are expected to be delivered within a year, with the remainder coming online by the end of the decade. SB Energy too plans to add an additional 800 megawatts of capacity to the data center, though details remain limited.
However, the initial announcement of the project’s size raised eyebrows among industry experts. Reports indicated that the biggest U.S. Grid operator serving the region, PJM Interconnection, and Ohio regulators were not initially informed about the project’s scope. This lack of early communication fueled skepticism about the project’s feasibility and timeline.
The Stargate Venture and the AI Race
The Ohio project represents an escalation of SoftBank’s ambitions within the broader “Stargate” initiative. While the original Stargate venture focused on multiple locations, Son emphasized a shift towards consolidating investment into a single, massive campus. SoftBank remains involved in several Stargate-branded sites across the U.S., but the Ohio facility is intended to be the centerpiece.
The timing of the announcement also comes as the Trump administration seeks to address concerns surrounding the expansion of data centers and secure commitments from technology companies to cover the associated costs. A key priority for the administration is maintaining a competitive edge in the global “AI race” against China, and ensuring sufficient power supply is seen as crucial to that effort.
Concerns and Backlash Over Data Center Expansion
The rapid growth of data centers isn’t without its critics. A growing backlash centers on the increasing demand for water and electricity, resources that are already under pressure in many areas. Data centers require significant amounts of both to operate and maintain optimal temperatures for their servers. This has led to concerns about potential strain on local resources and the environmental impact of increased energy consumption.
Customers for the Ohio data center have not yet been publicly announced, but SB Energy indicated they are in the process of being secured and will be involved in sourcing the necessary chips and equipment. The project’s success hinges on attracting major players in the AI and technology sectors.
The development of this massive data center complex in Piketon, Ohio, represents a significant investment in the future of AI computing. While challenges remain regarding its feasibility, energy source, and potential impact on local resources, the project underscores the growing importance of data infrastructure in the evolving technological landscape. The next key milestone will be the delivery of the first turbines within the next year, marking a tangible step towards realizing SoftBank’s ambitious vision.
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