Data centers continue to be built to meet the growing demands of AI, necessitating investments in facilities that produce the specialized hardware that goes into powering these data centers. In an attempt to cash in on this booming industry, Foxconn and SoftBank have announced a partnership to manufacture equipment designed for new data centers in Ohio.
As part of the deal, SoftBank has purchased a Lordstown OH site from Foxconn, although Foxconn will continue to be responsible for day-to-day operations. The site was initially created for the production of electric vehicles and was acquired by Foxconn in 2022. It’s a massive facility, measuring a whopping 6.2 million square feet, which should provide plenty of room for hardware production.
Foxconn Chairman Young Liu noted that this facility met several key requirements. It has access to the necessary power, there’s plenty of space, and it should be able to go into production in a relatively short amount of time. The timing seems to be a key sticking point, as Liu says that “it cannot be delayed for too long.”
The machines produced at the repurposed facility will likely be destined to another SoftBank venture. The company is also partnering with OpenAI and Oracle as part of the Stargate project, which was announced back in January. As part of this effort, SoftBank CEO Masayoshi Son announced the company was investing $100 billion into a variety of projects that will serve the burgeoning AI industry, such as data center and energy infrastructure.
Time will tell how fruitful this venture will be for these two companies, though it seems the project is well positioned to ride the current wave of AI growth.