OpenAI just secures massive Ohio data center (8 GW) lease with Nvidia support.

Nvidia will invest $1.5B in SB Energy and provide credit support for the first 4.25GW-IT of land, power and shell construction.

SB Energy builds and owns the campus, while OpenAI starts paying only when completed capacity arrives. leaving SB Energy to carry construction until each phase becomes usable.

The site will exclusively host Nvidia AI compute infrastructure, while Nvidia has also discussed financing OpenAI's chip purchases for the campus.

The first 800MW is expected in 2028, while later phases require new generation, transmission, permits, environmental reviews and financing.

Nvidia's support applies to completed-site value, with potential payments up to $105B after reletting or sale efforts fail. That structure can lower SB Energy's borrowing costs because lenders gain another recovery source if OpenAI eventually leaves.

The project also requires 9.2GW of new gas generation and $4.2B of grid upgrades, so compute is only one part of the build.

Nvidia is using its balance sheet to help finance demand for its own chips. By guaranteeing part of the completed site's residual value while receiving exclusive chip placement, it can make SB Energy's debt cheaper and pull hardware sales forward.

There's a downside correlation as well: if OpenAI demand weakens, Nvidia could face softer GPU sales as the backed facility becomes harder to re-lease.