OpenAI and SoftBank said Friday they will invest $1 billion in SB Energy as part of a broader effort to expand artificial intelligence infrastructure with clean energy.

The companies said the investment supports a large-scale data center buildout designed to meet rising demand for AI computing capacity. The announcement was made in a joint release.

The deal is tied to the $500 billion Stargate commitment that OpenAI, SoftBank and Oracle announced at the White House last January. The initiative was described as a long-term plan to expand U.S.-based AI infrastructure.

As part of the agreement, SB Energy will build and operate a 1.2 gigawatt data center site for OpenAI in Milam County, Texas. The site was first announced in September.

OpenAI President Greg Brockman said the partnership combines SB Energy’s data center and energy capabilities with OpenAI’s engineering expertise. He said the goal is to scale computing capacity through large, optimized AI data centers.

SB Energy is backed by SoftBank and Ares Management. The company develops, owns and operates energy projects across the United States.

SB Energy has offices in Redwood City, California, San Diego and Denver, according to its website. It focuses on integrated energy delivery tied to large infrastructure projects.

Alongside the investment, SB Energy formed a non-exclusive preferred partnership with OpenAI and SoftBank. The companies said the arrangement is aimed at developing a new model for data center construction.

That model combines OpenAI’s in-house data center designs with SB Energy’s experience in speed, cost control and energy integration. The companies said it is intended to accelerate deployment.

SB Energy has several multi-gigawatt data center campuses in development. Initial facilities are under construction and expected to enter service this year.

SoftBank, led by Chief Executive Masayoshi Son, and OpenAI have deepened their relationship over the past year. Two months after the Stargate announcement, OpenAI said it closed a $40 billion financing round led by SoftBank, with participation from Microsoft and other investors.

SoftBank said in November it sold its entire stake in Nvidia for $5.83 billion as it increased its focus on OpenAI.