OpenAI to lease massive new AI data centre in U.S., backed by Nvidia

ChatGPT-maker OpenAI has announced plans to lease a colossal new artificial intelligence (AI) data center in the United States, backed by a $105 billion financing commitment from Nvidia, as per a regulatory filing released on Monday. The data center, set to be constructed on the site of a former Cold War-era uranium enrichment plant in Ohio, could potentially reach 8 gigawatts of capacity, making it the largest single AI data center.

Nvidia and SB Energy, a subsidiary of SoftBank, will invest over $4 billion into local energy infrastructure, aiming to build at least 10 gigawatts of new energy generation to power the data center. OpenAI will commit $40 million towards supporting local priorities, while Nvidia has pledged an additional $1.5 billion to SB Energy.

Despite concerns about an AI bubble due to circular financing, Nvidia emphasized the discipline applied to supply-chain management in this deal. This marks a significant shift in scale for such financing practices, as AI developers often depend on financial backing from their own suppliers to build massive infrastructure. OpenAI CEO Sam Altman expressed optimism about the project's potential, stating that it will provide enough computing power to help millions of people use AI for tasks that are still being imagined.

The data center is expected to create 35,000 temporary construction jobs over six years and 2,500 long-term operating jobs. OpenAI and SB Energy assure that they will cover the data center's energy and infrastructure costs without passing them on to local residents. This announcement comes amid growing opposition to data centers due to their heavy electricity and water usage, with over 70% of Americans opposing their construction in their neighborhoods, as revealed by a March Gallup poll.