Full Breakdown
Nvidia backs OpenAI Ohio data center with $1.5 B equity and $105 B credit guarantee
8/17/2026, 8:09:04 PM
Core Deal Overview
Nvidia will invest $1.5 billion in SB Energy, the SoftBank-backed developer of the PORTS-Pike Technology Campus in Pike County, Ohio, and provide a credit guarantee of up to $105 billion for lease and power payments. Nvidia becomes the exclusive supplier of AI compute infrastructure for the campus, built for OpenAI under a 20-year lease. The initial phase will deliver 4.25 GW of IT load, with an option to add 3.75 GW, potentially reaching 8 GW. The first 800 MW are slated for operation in 2028, with further capacity added in phases.
Background & Context
The PORTS-Pike campus repurposes the former Portsmouth Gaseous Diffusion Plant, a Cold-War-era uranium-enrichment site owned by the U.S. Department of Energy. SB Energy plans to construct at least 10 GW of new natural-gas-fired power generation and invest $4.2 billion in regional grid upgrades with AEP Ohio. Chip makers are increasingly financing land, power and shell (LPS) for AI data centers to lock in long-term GPU demand.
Timeline
- July 16 2026 – Nvidia CEO Jensen Huang discussed the financing in Tokyo.
- August 15 2026 – Reuters reported Nvidia was weighing up to $3 billion in equity and roughly $100 billion in credit support.
- August 17 2026 – Nvidia filed a Form 8-K confirming the $1.5 billion equity investment and the $105 billion guarantee.
- July 26 2026 – Full guarantee agreements are scheduled to be filed as an exhibit to Nvidia’s quarterly report for that fiscal quarter.
Data & Statistics
- Equity investment: $1.5 billion (Nvidia -> SB Energy).
- Credit guarantee cap: $105 billion, covering lease, power and residual-value obligations for roughly 4.25 GW of IT load.
- Potential compute capacity: up to 8 GW.
- Power plant cost: $33 billion for a 9.2 GW natural-gas facility.
- Job creation: about 35,000 construction jobs through 2032 and 2,500 long-term operating positions.
- Energy demand: 1 GW of computing power can supply electricity for roughly 750,000 U.S. homes.
Official Statements & Responses
Nvidia described the arrangement as a “long-lived infrastructure” solution that secures land, power and shell for its chips, emphasizing that the guarantee is a residual-value backstop, not a full loan. The credit support is triggered only if OpenAI defaults on lease payments, after which Nvidia would cover the shortfall. OpenAI has agreed to reimburse any payments Nvidia makes under the guarantee.
Conflicting Reports & Gaps
- Early reporting by the Wall Street Journal suggested a $250 billion guarantee covering the full 10 GW campus. Subsequent filings show the guarantee capped at $105 billion for the first phase.
- Some outlets (e.g., Capacity Global) indicated Nvidia was considering a guarantee “under $120 billion,” while Reuters and the regulatory filing specify the exact $105 billion figure. The discrepancy stems from evolving negotiations and investor pressure, but the final terms are now documented in the August 17 filing.
What’s Next
The detailed guarantee agreements will be attached to Nvidia’s quarterly report for the fiscal quarter ending July 26 2026. After that filing, the first 800 MW of the campus is expected to be ready for service in 2028, at which point the credit support will begin to be drawn down as lease payments are made.
