Nvidia to invest $1.5 billion in SB Energy under OpenAI data center deal
Nvidia has committed to providing a guarantee of up to $105 billion to facilitate OpenAI's lease of a massive data center in Pike County, Ohio, developed by SoftBank-owned SB Energy. Additionally, Nvidia will invest $1.5 billion in SB Energy, marking one of the chipmaker's largest infrastructure financing commitments. This project, which will eventually boast up to 8 gigawatts of capacity, includes significant investments in new power generation and regional grid infrastructure.
Nvidia has finalized a significant deal to support OpenAI's expansion into data center infrastructure, providing a guarantee of up to $105 billion to help OpenAI lease a vast data center complex in Pike County, Ohio. This facility is being developed by SB Energy, a subsidiary of SoftBank, and will see Nvidia also investing $1.5 billion directly into SB Energy.
The initiative is part of Nvidia's strategic move to finance the infrastructure that utilizes its chips, aiming to stimulate demand and secure long-term deployment for its compute technology. The Ohio data center is projected to achieve a total capacity of up to 8 gigawatts, with an initial 800 megawatts expected to be operational by 2028 under a 20-year lease agreement with OpenAI.
To power this enormous facility, SoftBank and SB Energy plan to develop at least 10 gigawatts of new power generation and allocate $4.2 billion towards upgrading regional grid infrastructure in partnership with AEP Ohio. Nvidia anticipates substantial returns from this arrangement, projecting up to $200 billion in revenue from the Ohio site alone and a potential $600 billion from OpenAI by 2030 through the sale of 16 gigawatts of computing power, including a planned expansion of the Ohio site. The project is expected to generate approximately 35,000 construction jobs and 2,500 long-term operational positions through 2032.