OpenAI and Nvidia Launch Massive 10-Gigawatt AI Data Center Project in Ohio

OpenAI has signed a 20-year lease agreement for a massive AI data center project in Ohio with a power capacity of 10 gigawatts, enough to supply electricity to approximately 7 million homes. Nvidia will provide the necessary chips and back the project with a financial guarantee potentially reaching $105 billion. The first phase of the data center is expected to reach 5 gigawatts capacity.

Nvidia's commitment includes exclusive chip supply for the first half of the Ohio site and an equity stake in SB Energy, the project’s developer. The company may expand its involvement to cover the entire campus. This financial backing is designed to help OpenAI secure funding through debt while limiting Nvidia's risk exposure. If OpenAI withdraws, SB Energy will attempt to lease or sell the facility to mitigate losses, with Nvidia covering any shortfall up to $105 billion after project completion.

The project will rely on a 9.2-gigawatt natural gas power plant owned by the U.S. government and funded by Japan under a recent trade agreement. Nvidia plans to sell chips worth hundreds of billions of dollars for the first phase alone and is considering financing OpenAI’s chip purchases. Nvidia also announced a $1.5 billion investment in SB Energy, which is preparing for an initial public offering expected next month, aiming to raise $5 to $7 billion.

This deal follows weeks of negotiations and adjustments to address investor concerns about Nvidia’s risk. The project complements Nvidia’s existing Israeli operations, including a southern data center in Beersheba and R&D centers in Yokneam, Tel Aviv, Ra'anana, and Tel Hai, where the company recruits hardware and software engineers to develop AI infrastructure technologies.