OpenAI to lease massive new AI data centre in US, backed by Nvidia

• OpenAI will lease a massive new AI data centre in Ohio for 20 years, backed by Nvidia's US$105 billion (S$134.13 billion) financing, powered exclusively by Nvidia chips.
• The data centre will have up to 8GW capacity, supported by over US$4 billion in local energy investments from SoftBank and SB Energy.
• The project aims to create 35,000 construction jobs and 2,500 permanent jobs, addressing concerns about energy use without raising local costs.

SAN FRANCISCO – ChatGPT-maker OpenAI will lease a massive new data centre in the United States for 20 years, backed by a US$105 billion (S$134.13 billion) financing commitment from Nvidia, according to a regulatory filing published on Aug 17.

The project will be built on the site of a former Cold War-era uranium enrichment plant in Ohio and could eventually grow to have 8GW of capacity, making it the largest single data centre for artificial intelligence (AI).

The data centre will also run “exclusively” on Nvidia chips.

SoftBank and the data centre’s owner, a subsidiary called SB Energy, will invest more than US$4 billion into local energy infrastructure and “build at least 10 GW of new energy generation” to power the data center. OpenAI will commit US$40 million to “support local priorities”.

Additionally, Nvidia will invest US$1.5 billion into SB Energy, though the company pre-emptively pushed back on critiques about so-called circular financing, which has fuelled fears about an AI bubble that will eventually burst.

“OpenAI will pay the lease,” Nvidia wrote in a blog post on Aug 17, and continued that the deal was made with “the same discipline we apply to supply-chain management”.

However, Nvidia’s financing guarantee, its largest, marks a shift in scale for a practice that has become common in the sector: Despite explosive revenue growth, AI developers still depend on financial backing from their own suppliers to build the giant infrastructure underpinning this technological revolution.

‘Huge site’

Nvidia previously considered providing a backstop of US$250 billion dollars, according to the Wall Street Journal and Bloomberg in July. Nvidia’s shares fell by 5 per cent after those reports, but they are up by more than 19 per cent in 2026.

“This is going to be a huge site, with enough computing power to help millions of people use AI to do things we can only start to imagine today,” OpenAI CEO Sam Altman said in a statement.

OpenAI expects the project to create 35,000 temporary construction jobs over six years and 2,500 “long-term operating jobs”, it said in a blog post.

Promises about jobs and energy investments are a response to growing hostility toward data centres, which need heavy amounts of electricity and water to operate.

More than 70 per cent of Americans oppose building them near their homes, according to a Gallup poll from March, and rising electricity bills, attributed in part to these sites, are fuelling debate in the midterm elections.

OpenAI and SB Energy maintain that they will cover the data centre’s energy and infrastructure costs without passing them on to local residents.

It will initially have 4.25GW of capacity with the possibility of adding another 3.75GW. A nuclear power plant can provide around 1GW of energy.

The entire city of San Francisco consumed just over 5GW of energy in 2024, according to state data.

In 2025, OpenAI, Nvidia and SoftBank – alongside other partners including Oracle – also announced a US$500 billion, multiyear data centre project called Stargate, in which they have committed to building out 10 GW of capacity across multiple sites. Half of that capacity is being built in UAE.

Elon Musk’s SpaceX, which now owns his AI subsidiary SpaceXAI, has 1GW of capacity at its Colossus data centres across Tennessee and Mississippi. Meta has a 5 GW data centre project in Louisiana. AFP