Nvidia invests $1.5B in SoftBank data center developer SB Energy
Nvidia announced a $1.5 billion investment in SB Energy and up to $105 billion in credit to build the OpenAI Ports-Pike data center near Cincinnati.
Stock photo for illustration only, not from the actual event
- Nvidia invests $1.5 billion in data center developer SB Energy
- Secures sole supplier status for compute infrastructure at Ports-Pike facility
- Provides up to $105 billion in credit to support facility construction
- Plans to build a 9.2-gigawatt natural gas power plant on historic DOE land
Nvidia announced on Monday that it is committing $1.5 billion in funding to SB Energy, a data center developer tied to SoftBank and OpenAI. This move underscores the aggressive push by major tech players to secure the physical infrastructure needed for future artificial intelligence workloads.
The investment guarantees that Nvidia will serve as the exclusive provider of compute infrastructure for OpenAI’s Ports-Pike data center situated near Cincinnati, Ohio. According to filings submitted by the company to the Securities and Exchange Commission (SEC), Nvidia will also extend up to $105 billion in credit to facilitate the construction of the facility, which is slated to scale from an initial 4.25 gigawatts up to 8 gigawatts in capacity.
SB Energy's current backing includes investments from SoftBank and OpenAI. SoftBank previously held $5.8 billion worth of Nvidia shares, which it liquidated back in November to redirect funds into alternative artificial intelligence initiatives.
Stock photo for illustration only, not from the actual event
This massive financial commitment highlights the escalating competition for computational dominance in the artificial intelligence sector. Modern AI infrastructure requires not only cutting-edge silicon chips but also unprecedented amounts of electrical power measured in gigawatts, creating a severe operational bottleneck. By stepping in with direct equity, massive credit lines, and infrastructure exclusivity, hardware leaders like Nvidia are effectively locking down the entire AI supply ecosystem from silicon to power generation.
Additionally, the data center and power developer intends to construct a massive 9.2-gigawatt natural gas power plant directly on the site. The land is owned by the U.S. Department of Energy and historically served as a facility that enriched uranium for the United States nuclear arsenal as well as U.S. Navy submarines.
Construction of the power plant alone is projected to reach a staggering $33 billion. This towering price tag reflects the soaring expenses associated with building natural gas power facilities, which have surged by 66% over the past two years according to data from BloombergNEF. Once operational, these new power assets will find themselves competing for natural gas supplies against export markets, a convergence that analysts warn could triple natural gas prices across certain regions of the country.
Source: TechCrunch
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