Key Highlights

  • Nvidia (NASDAQ: NVDA), OpenAI, and SB Energy are teaming up to build an 8-gigawatt Data Center Facility in Ohio.
  • Nvidia will provide more than $105 billion in financing to secure land, power, and a shell for the site.
  • The facility, known as the PORTS-Pike Technology Campus, will be built and owned by SB Energy and leased to OpenAI for 20 years.
  • Combined with prior agreements, the new deal could total as much as $600 billion for Nvidia.

Nvidia Corporation (NASDAQ: NVDA), OpenAI, and SB Energy are teaming up to build a massive 8-gigawatt data center facility in Ohio, with Nvidia providing more than $105 billion in financing to secure land, power, and a shell for the site.

What Happened

Initial plans call for the facility to offer 4.25 gigawatts worth of computing capacity, with the option to increase that by another 3.75 gigawatts in the future. SB Energy will ultimately build and own the site, known as the PORTS-Pike Technology Campus, which OpenAI will then Lease for 20 years.

Nvidia is making a $1.5 billion Investment in SB Energy as part of the arrangement. The complex will exclusively use Nvidia GPUs, which the company says could amount to some 1.5 million chips, or roughly $150 billion to $200 billion in potential Revenue per generation deployed at the site through 2030.

Market Reaction

Nvidia (NASDAQ: NVDA) shares closed at $225.01, down $0.15, or 0.07%, at the close on the day of the announcement, before ticking up slightly to $225.04, up $0.03, or 0.01%, in after-hours trading.

Taken together, the new deal and Nvidia's prior agreements with OpenAI could total as much as $600 billion for the company, underscoring the scale of Nvidia's expanding financial commitments to secure long-term Demand for its GPUs across major AI infrastructure buildouts.

Outlook

Progress on the PORTS-Pike Technology Campus, including the initial 4.25-gigawatt phase and the potential expansion to 8 gigawatts, is likely to remain a key data point for investors tracking Nvidia's long-term revenue visibility through 2030.

The scale of Nvidia's combined financial commitments to OpenAI-related infrastructure, now totaling as much as $600 billion, is likely to remain a focal point for investors assessing the company's Capital allocation strategy amid the broader AI infrastructure buildout.