Foxconn, in partnership with Japanese-owned SoftBank, will be building AI data center equipment within the former Lordstown GM Assembly plant.

Reuters first reported the news on Monday. The work will be, as 21 News has previously reported, part of the Stargate project to build up to 16 artificial intelligence data centers across the US.

While SoftBank has reportedly purchased 2300 Hallock Young Road from Foxconn, the Trumbull County Auditor's office says it has not reached notification of the transfer as of Monday morning. 

Reuters is also reporting that Foxconn Chairman Young Liu also said that Foxconn will work with SoftBank in Trumbull County through a joint venture that the two companies will set up.

21 News received an excerpt of remarks to reporters from the Foxconn CEO, who said this Monday morning in Taipei:

Reporter: Could you talk a bit about the cooperation between Ohio and SoftBank?
 
Y: Yes, actually, this has been moving in that direction for some time. We know that this cooperation project first of all requires electricity and land. Timing is also very important—if we wait too long, it won’t work. Considering all these factors together, we feel that Ohio is a very suitable location. SoftBank feels the same way. In fact, the preparatory work already started more than half a year ago.
 
Y: So, if you get the chance, for those reporters who visited our Ohio factory last time, if you go there again now, it already looks quite different.
 
Reporter: So, can we confirm that the buyer is SoftBank? And secondly, how much additional investment will we be putting in?
 
Y: This is basically the arrangement: we will set up an investment entity with SoftBank dedicated to managing production related to Data Center Equipment.
 
For the Data Center Equipment part, we and SoftBank will each hold 50%. As for the equipment itself and the site, those will be 100% owned by SoftBank.
 
Reporter: Is this JV the same one that was announced earlier this year?
 
Y: Yes, yes, that’s right.
 
SoftBank will own the Lordstown facility and property and will work with Foxconn as partners. The name of the company purchasing the Lordstown facility is Crescent Dune LLC, filed in Delaware in July, and SoftBank owns that name. 
 

The full transaction sale amounts for all assets, including the plant, as well as the equipment and machinery on behalf of Foxconn EV Asset Management LLC and Foxconn EV System LLC, totaled $375 million.

The Stargate Project was announced at the White House in January, with a commitment to invest $500 billion over the next four years. While the project is not a government project, the plan was announced with funders in Stargate, including SoftBank, OpenAI, Oracle, and MGX. SoftBank and OpenAI are the lead partners for Stargate, with SoftBank having financial responsibility and OpenAI having operational responsibility.

Guy Coviello, president and CEO of the Youngstown/Warren Regional Chamber, said, "The decision to anchor part of the nation’s artificial intelligence infrastructure here underscores that the Valley is not only competitive but essential to the industries of the future. Manufacturing AI data center hardware in Lordstown positions our region at the heart of a global effort with the potential to reshape technology, business and everyday life."

Coviello, in a written statement, said that the project, "...is about more than innovation—it’s about jobs, investment and a new era of growth. The Chamber together with our public, private and educational partners is committed to ensuring the talent, housing and infrastructure are in place to capture the full impact of this once-in-a-generation opportunity."

Coviello added, "Our talks with SoftBank representatives have been very encouraging, and the convergence of these global leaders with OpenAI and Oracle signals a bright future for our community."

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