Nvidia announced a $1.5 billion investment in SB Energy, a developer linked to SoftBank and OpenAI. This deal secures Nvidia as the exclusive provider of compute infrastructure for OpenAI’s Ports-Pike data center near Cincinnati. The agreement includes up to $105 billion in credit to construct a facility capable of scaling from 4.25 gigawatts to 8 gigawatts. SB Energy plans to build a 9.2 gigawatt natural gas power plant on land previously used for enriching uranium. This project sits atop a site owned by the U.S. Department of Energy that once supported the U.S. nuclear arsenal and Navy submarines. The power plant is expected to cost $33 billion, reflecting a 66% rise in construction costs over the last two years. Once completed, these facilities will compete with export markets for natural gas supply.
The financial scale of this infrastructure project highlights the extreme capital requirements for modern artificial intelligence. Securing exclusive access to such massive power capacity ensures OpenAI can maintain operational control without relying on external vendors. The potential impact on regional energy markets suggests a significant shift in how data centers source power.
- Construction costs for natural gas plants have risen 66% in two years
- The site previously enriched uranium for the U.S. Navy
- Future competition could triple natural gas prices in some areas
