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

OpenAI has agreed to lease a colossal new AI data center in Ohio for a span of 20 years, backed by a substantial $105 billion financing commitment from Nvidia. This project, set to be constructed on the site of a former Cold War-era uranium enrichment plant, has the potential to grow to an immense 8 gigawatts of capacity, making it the largest single data center for artificial intelligence in the world.

Nvidia chips will exclusively power the data center, which will also utilize local energy infrastructure investments, with SB Energy committing to build at least 10 GW of new energy generation capacity. OpenAI will allocate $40 million towards supporting local priorities. Nvidia's involvement marks a significant shift, as the company's largest financing guarantee to date, and their investment of $1.5 billion into SB Energy aims to counter criticism of circular financing practices often associated with AI development.

Despite initial concerns, Nvidia's shares have since risen by over 19 percent this year. OpenAI CEO Sam Altman expressed optimism about the project, stating that it will create 35,000 temporary construction jobs over six years and 2,500 long-term operating jobs. This development comes as data centers face increasing scrutiny due to their heavy energy and water requirements, with 70% of Americans opposing the construction of such facilities near their homes.

OpenAI and SB Energy assert that they will cover the data center's energy and infrastructure costs without imposing additional financial burdens on local residents.