Hardware

OpenAI Seeks Largest Data Center With Nvidia Financial Backing

OpenAI is negotiating to lease a 10-gigawatt data center in Ohio, potentially backed by Nvidia's financial guarantee.

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OpenAI is in talks to lease a planned 10-gigawatt data center in Ohio, with potential financial backing from Nvidia. According to The Information, two individuals with direct knowledge of the negotiations confirmed the details. The site, being developed by SB Energy on federal land in southern Ohio, is majority-owned by OpenAI investor SoftBank. The project represents OpenAI's largest infrastructure commitment to date, with a 20-year lease agreement in place. The data center is expected to cost at least $500 billion at full buildout. Nvidia would act as a guarantor for both the lease and project financing, using its balance sheet to back the payments. This type of financial guarantee would be new for Nvidia at this scale. The project mirrors the Stargate initiative announced at the White House in January 2025 with Oracle and SoftBank, which saw limited progress. The first phase of the project, at 800 megawatts, is expected to be completed by 2028. The site previously housed a uranium enrichment facility in Pike County. Negotiations are still ongoing, and plans could change. On Monday, OpenAI confidentially filed paperwork for an IPO.

The data center, located on federal land in southern Ohio, is being developed by SB Energy, which is majority-owned by OpenAI investor SoftBank. The project is part of OpenAI's broader infrastructure strategy, with a 20-year lease agreement representing its largest such commitment. The financial structure of the project includes Nvidia's role as a guarantor, using its balance sheet to back payments for both the lease and project financing. This marks a new approach for Nvidia in providing financial guarantees at this scale.

The site previously served as a uranium enrichment facility in Pike County. The first phase of the data center, with a capacity of 800 megawatts, is expected to be completed by 2028. The project is part of a broader initiative that echoes the Stargate program announced at the White House in January 2025, which involved Oracle and SoftBank but saw limited progress. Negotiations are still ongoing, and plans could change. On Monday, OpenAI confidentially filed paperwork for an IPO.

Source: thedecoder

Key points

OpenAI is negotiating to lease a 10-gigawatt data center in Ohio.
Nvidia would serve as guarantor for both the lease and project financing.
The data center is being developed by SB Energy on federal land in southern Ohio.
The site previously housed a uranium enrichment facility in Pike County.
The first phase of the project, at 800 megawatts, is expected by 2028.
The project echoes the Stargate initiative announced at the White House in January 2025.
Negotiations are still ongoing, and plans could change.

Source: The Decoder Read the original →

WRITTEN BY

Sam Bergstrom

AI Infrastructure & Hardware

Sam specializes in AI chips, data centers, and training infrastructure.