Foxconn Transfers EV Manufacturing Facility, Embraces Data Center Development
SoftBank to Transform Former Foxconn Factory in Ohio into AI Data Center
In a significant move for the technology and automotive industries, Japanese investment giant SoftBank Group Corp has purchased the former Foxconn factory in Lordstown, Ohio, for approximately $375 million. The deal, announced earlier this year, was made through an entity named Crescent Dune LLC, which is linked to SoftBank.
The Lordstown plant, originally a General Motors factory, has had a varied history. It was previously used for electric tractor production for Monarch, and Foxconn had planned to use it as an investment into the electric vehicle sector. However, those plans fell through, and Foxconn has now sold the plant to SoftBank.
SoftBank intends to use the facility as part of its Stargate AI project, a large-scale initiative involving SoftBank, OpenAI, and Oracle. The project aims to build infrastructure, including data centers, across the U.S. The Lordstown site is expected to house one of these AI server data centers, positioning it at the forefront of AI technology both in Ohio and nationwide.
Foxconn will continue to occupy and operate part of the plant, focusing on AI data center development while Stargate remains a parallel venture. If fully utilized, the Lordstown plant would be six times larger than the Nvidia GB300 AI server manufacturing plant Foxconn is building in Houston.
The sale includes the site's buildings, land, equipment, and machinery. The deal was split into two separate transactions: The factory and land sold for $88 million, while the machinery and equipment went for $287 million.
The relationship between Foxconn and Lordstown Motors soured after the latter failed in June 2023 and later sued Foxconn. However, with the sale of the plant, that chapter is now closed.
Foxconn remains committed to U.S. automotive customers and the Lordstown plant can ramp up automotive production when needed. Currently, Foxconn is using the site to build electric tractors for California-based start-up Monarch. The company also manufactures data center products for Nvidia and Apple iPhones.
The Wall Street Journal reported these plans for the Lordstown plant. With SoftBank's entry, the plant is poised to play a crucial role in the development of AI technology in the U.S.
- The AI server data center at the transformed Lordstown plant, under SoftBank's control, will be significantly larger than the Nvidia GB300 AI server manufacturing plant Foxconn is building in Houston, marking a major advancement in data-and-cloud-computing and the finance sector.
- The Stargate AI project, a partnership between SoftBank, OpenAI, and Oracle, aims to integrate technology, industry, and finance, with the Lordstown site expected to house one of these data centers, positioning it as a key player in the finance and data-and-cloud-computing sectors.
