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Nvidia agreed to guarantee up to US$105 billion in lease payments to facilitate the development of OpenAI data center in Ohio, a large-scale project that reinforces the chip manufacturer’s involvement in funding infrastructure for artificial intelligence.
The campus will be built, operated, and owned by SB Energy OpenAI, a SoftBank-backed company, will use the facilities through a 20-year lease agreement, while Nvidia will exclusively provide the computing infrastructure for AI.
In addition, Nvidia will invest US$1.5 billion in SB Energy and will ensure up to 8 gigawatts (GW) of computing capacity at the complex. In this way, the agreement connects energy, semiconductors, financing, and data centers to expand the processing capacity available for artificial intelligence.
Nvidia promotes an OpenAI data center with an initial 4.25 GW
Initially, the campus located in the Pike County, Ohio it will have a planned capacity of 4,25 GW its implementation will be carried out in phases starting in 2028.
Nvidia the manufacturer has secured the land and the necessary power supply for this first stage, furthermore, the manufacturer will provide financial support for the acquisition of the land, the power supply, and the construction of the structure associated with the initial capacity.
The company will also have the option to insure the 3.75 GW remaining this would allow the total capacity of the campus to be increased to the 8 GW contemplated in the agreement.
Energy magnitude allows the project to be sized, as a reference, one gigawatt is approximately equivalent to the electricity needed to supply 750,000 US households therefore, the initial capacity of 4.25 GW demonstrates the high electricity demand associated with the new facilities intended for artificial intelligence.
Nvidia expands its role in AI infrastructure
Furthermore, the agreement takes Nvidia beyond its traditional role as a semiconductor supplier, the company will financially support an infrastructure that will utilize its own computing systems to run artificial intelligence workloads.
This strategy seeks to facilitate the deployment of new computing capacity at a time when the availability of land, energy, and connections to electrical grids limits the development of large data centers.
At the same time, Nvidia’s financial involvement in projects built around its chips has raised concerns about the growing interdependence between the semiconductor manufacturer and the companies that use its technology.
To OpenAI the lease agreement will ensure computing capacity during 20 years without directly assuming ownership of all the physical infrastructure necessary to house its systems.
SB Energy and SoftBank will expand the electricity infrastructure
In addition to the OpenAI campus, SoftBank y SB Energy they plan to develop at least 10 GW of new electricity generation, a capacity intended to support the growth of the technological infrastructure.
The companies also plan to invest US$4.2 billion in new regional network infrastructure through a partnership with AEP Ohio.
This energy component is crucial due to the rapid increase in electricity consumption associated with AI data centers. Technology companies need to guarantee large amounts of electricity for extended periods to operate the servers and cooling systems that support these facilities.
Likewise, existing power grids, lengthy approval processes, and limited availability of land with access to energy are leading companies involved in artificial intelligence to increasingly participate in energy and infrastructure projects.
The project would generate approximately 35,000 construction jobs
Because of its scale, the data center will also have a significant impact on Ohio’s economic activity, estimates that the project could generate around 35,000 construction-related jobs by 2032.
Once the complex is operational, approximately 2,500 long-term operational jobs.
The schedule anticipates that the first facilities will begin operating in phases from 2028 onwards, their construction will coincide with a period in which large technology companies are increasingly allocating resources to data centers capable of training and running advanced AI models.
OpenAI could invest US$600 billion in processing capacity
Finally, the CEO of Nvidia, Jensen Huang he indicated that OpenAI’s investment in the company’s chips could reach around US$600 billion in processing capacity by 2030.
The Ohio deal is also linked to the infrastructure expansion promoted by OpenAI and SoftBank, both companies previously made an investment of US$1 billion to expand the data center and energy infrastructure that supports the initiative Stargate AI.
Thus, the project reflects how the expansion of artificial intelligence increasingly depends on physical elements such as electricity, land, networks, and data centers. The ability to secure these resources will be crucial for sustaining the growth of AI infrastructure in the coming years.
Source: Reuters
Photo: Shutterstock
