OpenAI has entered a 20-year lease agreement for AI computing capacity at a new data center campus in Pike County, Ohio. The arrangement, supported by Nvidia through residual-value guarantees and technology supply, positions the site as a dedicated host for Nvidia AI infrastructure. SB Energy will construct, own, and operate the facility.

Lease Terms and Capacity Details

The lease covers an initial 4.25 gigawatts of IT load at the PORTS-Pike Technology Campus, with operations expected to begin in phases during 2028. Nvidia holds an option on an additional 3.75 gigawatts that could expand total campus capacity to 8 gigawatts. OpenAI will serve as the primary tenant and will deploy Nvidia’s full-stack DSX AI factory platform, incorporating the company’s GPUs, CPUs, and networking equipment.

The campus is planned across private and federal land that includes the former Portsmouth Gaseous Diffusion Plant site in southern Ohio. SB Energy is advancing the project in coordination with AEP Ohio, the U.S. Department of Energy, and the Department of Commerce. Nvidia has secured the necessary land, power commitments, and building shell for the initial phase.

Nvidia’s Financial Guarantees and Investment

Nvidia disclosed residual-value guarantee agreements tied to OpenAI’s initial commitment. The company’s aggregate payment obligations under these arrangements are capped at $105 billion. The guarantees generally take effect once each section of the campus reaches ready-for-service status.

OpenAI remains responsible for lease payments. Nvidia would incur an obligation only in the event of OpenAI insolvency or default. In such a case, Nvidia would typically cover the shortfall between the guaranteed minimum lease value and amounts recovered through a replacement tenant or property sale. Nvidia may also assume the lease, seek another tenant, initiate a sale, or allow termination. OpenAI has agreed to reimburse and indemnify Nvidia for any related payments.

In parallel, Nvidia will invest $1.5 billion in SB Energy. This places the chipmaker alongside existing investors SoftBank Group and OpenAI and supplies capital for SB Energy’s data center and energy projects.

Huang addressed concerns about circular financing by confirming that OpenAI will make the lease payments. He noted that unused capacity could be offered to other eligible customers within Nvidia’s network.

Power, Grid, and Local Impact

SB Energy and SoftBank intend to develop at least 10 gigawatts of new electricity generation to support the planned 8 gigawatts of IT capacity. The partners will also invest a minimum of $4.2 billion in regional grid infrastructure through an agreement with AEP Ohio. These arrangements are structured so that existing Ohio electricity customers do not bear the project’s infrastructure costs.

The development is projected to support approximately 35,000 construction jobs through 2032 and create about 2,500 permanent operating positions. OpenAI and SB Energy have established an $80 million community benefits fund, with OpenAI contributing an additional $40 million to SB Energy’s original commitment. Funding is directed toward affordable energy initiatives, workforce training, employment programs, and local economic development.

SB Energy co-CEO Rich Hossfeld stated the group aims to build the site while protecting ratepayers and investing in southern Ohio. OpenAI CEO Sam Altman indicated the company wants Pike County residents to gain through jobs, business opportunities, and community investment.

Broader Context of AI Infrastructure Demand

The Ohio lease forms part of wider efforts by AI companies to lock in power, land, and computing capacity amid rapidly rising demand. Large-scale projects typically require multi-year lead times for generation and transmission upgrades before equipment can operate. Nvidia described the PORTS-Pike arrangement as a step in expanding from chips to full-stack AI factories that include systems, networking, and software.

SB Energy has previously been selected for related work, including a 1.2-gigawatt data center in Texas linked to OpenAI infrastructure initiatives. SoftBank and OpenAI each earlier committed $500 million to SB Energy. The Ohio project continues that collaboration while expanding Nvidia’s role beyond hardware supply into guarantees and equity investment in supporting energy and data center platforms.