Nvidia Invests $1.5 Billion in SB Energy for Ohio AI Campus Development

Nvidia is making a significant move in the AI infrastructure space with a $1.5 billion investment in SB Energy Corp., a SoftBank-backed power and data-center developer. This investment is part of the ambitious PORTS-Pike Technology Campus project in Pike County, Ohio, which is designed to provide 8 gigawatts of AI compute capacity using Nvidia's hardware.

The investment positions Nvidia alongside major players like SoftBank and OpenAI, which will be the primary tenant of the campus under a 20-year lease. This lease mandates that all AI compute infrastructure must come exclusively from Nvidia. In addition to the equity investment, Nvidia has pledged up to $105 billion in residual value guarantees to support lease financing for the campus.

The initial capacity at launch is set at 4.25 gigawatts, with plans to expand by an additional 3.75 gigawatts. The project also aims to generate at least 10 gigawatts of new electricity capacity and will invest $4.2 billion in regional grid infrastructure in collaboration with AEP Ohio, the local utility. This construction is expected to create tens of thousands of jobs and establish an $80 million community benefits fund for Pike County.

This investment comes just weeks before SB Energy's anticipated IPO, which is projected to value the company at around $50 billion. Nvidia's involvement is seen as a strong validation signal for the company as it prepares to enter public markets.

The Ohio campus reflects a broader trend of AI compute investments targeting regions with ample resources for large-scale operations. The site, previously home to the Portsmouth Gaseous Diffusion Plant, offers existing grid connections and significant land area for development.