OpenAI to Build Massive AI Data Center in Southern Ohio
OpenAI, the San Francisco-based company behind ChatGPT, has announced plans to lease space for a hyperscale data center in Pike County, Ohio. The facility, to be built and operated by SB Energy on the former Portsmouth Gaseous Diffusion Plant site, will be located at the PORTS-Pike Technology Campus, roughly 100 miles east of Cincinnati.
The announcement, made Aug. 17, outlined an 8-gigawatt data center. S. Energy Secretary Chris Wright described the project as the largest AI data center in the world during a groundbreaking in March. Total electrical power for the site, including an additional 2 gigawatts used for power conversion and cooling, would reach 10 gigawatts.
Nvidia, the Santa Clara-based tech company, has invested 5 billion in SB Energy, the site's owner. The data center will exclusively host Nvidia AI computing infrastructure, according to the announcement.
Construction and Cost Details
The first phase of construction will cost between $30 billion and $40 billion, according to Ally Copple, spokesperson for SB Energy. Phase one is expected to ramp up this year, with full-campus construction continuing through 2032.
The project will create an estimated 35,000 construction jobs, with priority given to regional workers, and about 2,500 permanent positions once the facility is open.
SB Energy will handle power grid upgrades and new transmission lines, while OpenAI will pay for power capacity. Electricity costs will not be passed on to residents, the company said. The first phase will require 800 megawatts of power by 2028, with further expansion requiring new power plants, natural gas generation, and additional transmission infrastructure.
The campus is still being designed, and OpenAI has not shared the facility's square footage.
Nvidia's Role and Financing
Nvidia will invest 5 billion in SB Energy and provide credit support for the first 25 gigawatts of the project. The company is also taking an equity stake in SB Energy, with the option to expand its commitment to the full campus later. Nvidia has agreed to backstop a portion of the value of the completed data center, starting with the first phase, which represents around 5 gigawatts of power.
SB Energy is reportedly working with bankers on a possible initial public offering as soon as next month, aiming to raise between $5 billion and $7 billion. According to one source, Nvidia had initially planned to guarantee OpenAI's full 10-gigawatt commitment, a package that could have totaled around $250 billion.
Site History and Development Dependencies
The data center site is part of the former Portsmouth Gaseous Diffusion Plant, a uranium-enrichment facility owned by the S. Department of Energy and used during the Cold War to produce enriched uranium for nuclear weapons. The area is contaminated and being cleared of radioactive pollution.
All development depends on obtaining required infrastructure, permits, environmental reviews, and financing. Commerce Secretary Howard Lutnick and Energy Secretary Chris Wright are reported to be closely involved in the project.
Local Impact and Community Response
The project will be built on a site that is part of a former uranium-enrichment plant, and two villages sit roughly 10 miles north: Piketon (population 2,300) and Waverly (4,100 residents).
Residents in Ohio have largely led opposition to data centers, citing concerns over power consumption and local resources. A group in Trenton recently attempted to ban hyperscale data centers. The scale of the OpenAI facility has heightened such concerns: the amount of electrical power the site could use is equivalent to that of around 4 million homes, according to the source.
OpenAI has pledged $40 million to a community grant fund steered by residents, and SB Energy previously announced a separate $40 million commitment. In addition, OpenAI will provide free access to ChatGPT for every Ohio college student.