Nvidia to provide $105bn guarantee for OpenAI data centre
Nvidia will provide a $105 billion guarantee for OpenAI's lease of a massive data center in Pike County, Ohio, developed by SoftBank-owned SB Energy, marking one of Nvidia's largest infrastructure financing commitments. The project aims for an 8 gigawatt capacity, with the first 800 megawatts coming online by 2028, and involves significant investment in regional grid infrastructure by SoftBank, SB Energy, and AEP Ohio. The initiative, supported by the state and federal government, is expected to create thousands of jobs and has a low risk of local opposition.
Nvidia has committed a significant financial guarantee and investment for a sprawling data center project in Pike County, Ohio, involving OpenAI and SoftBank-owned SB Energy. The chipmaker will provide a guarantee of up to $105 billion to help OpenAI lease the facility for 20 years and will also invest $1.5 billion in SB Energy. This builds upon previous investments by OpenAI and SoftBank to expand data center infrastructure.
The Ohio data center, for which Nvidia will be the exclusive chip provider, is planned to achieve a total capacity of up to 8 gigawatts, with an initial 800 megawatts expected to be operational by 2028. Jensen Huang, Nvidia's CEO, clarified that this deal is not circular financing, but rather a strategic move to secure long-lived infrastructure for Nvidia's compute needs. The complex financing structure is anticipated to include equity, potentially from an SB Energy IPO and direct SoftBank investment, alongside debt components such as project finance loans and public bonds.
To support the immense power demands of the facility, SoftBank and SB Energy are partnering with AEP Ohio to construct at least 10 gigawatts of new power generation and invest $4.2 billion in regional grid infrastructure. The project is projected to generate approximately 35,000 construction jobs through 2032 and about 2,500 long-term operating positions.
The project is seen as having a low risk of construction delays due to local opposition, given strong state support, the promise of job creation, and a commitment from OpenAI and SoftBank to fund $80 million in community projects. The U.S. Departments of Commerce and Energy are also involved in the federal land project.