Nvidia backs SB Energy with $1.5B for OpenAI-linked Ohio data center
Nvidia said it will invest $1.5 billion in SB Energy, the data-center and power developer behind the Ports-Pike facility near Cincinnati, Ohio. The agreement also provides SB Energy with up to $105 billion in Nvidia credit to support construction of the site, where Nvidia will be the sole supplier of compute infrastructure.
SB Energy’s existing investors include SoftBank and OpenAI. The project is designed to begin at 4.25 gigawatts of capacity and could grow to 8 gigawatts, based on documents Nvidia filed with the US Securities and Exchange Commission.
Compute supply is tied to a much larger build-out
The investment links Nvidia directly to one of the largest proposed AI infrastructure projects in the United States. Nvidia is not only contributing equity: the credit commitment is intended to help finance the construction of the Ports-Pike campus and its supporting systems.
OpenAI’s planned capacity at OpenAI’s 8 GW Ports-Pike data-center lease places the current financing arrangement in the context of a project whose scale is measured in gigawatts rather than conventional data-center racks. SB Energy will supply the development work while Nvidia becomes the exclusive compute-infrastructure provider.
SoftBank had previously owned $5.8 billion in Nvidia shares, but sold that holding in November to finance other AI investments. Its continued involvement in SB Energy means the developer remains connected to both SoftBank and OpenAI as the Ohio project advances.
Power construction adds a second cost challenge
SB Energy plans to build a 9.2-gigawatt natural-gas power plant at the site, on land owned by the US Department of Energy. The location previously enriched uranium for the US nuclear arsenal and for US Navy submarines. The planned power plant is expected to cost $33 billion.
Power availability is central to the project’s economics. BloombergNEF reported that natural-gas power-plant construction costs have increased 66% over the past two years. Once SB Energy’s plant and other projects are completed, they may also compete with export markets for natural gas, a combination that could triple gas prices in parts of the country.
Business implication
For businesses planning AI capacity, the Ports-Pike deal underlines that accelerator procurement, long-term financing and dedicated electricity supply must be evaluated as one infrastructure decision, because each can shape the cost and timing of deployment.