Nvidia said on Monday that it will invest $1.5 billion in SB Energy, a data center linked to SoftBank and OpenAI.

The investment ensures that Nvidia will be the sole supplier of compute infrastructure at OpenAI’s Ports-Pike data center near Cincinnati, Ohio. Nvidia will also provide up to $105 billion in credit to help build the facility, which could scale from an initial 4.25 gigawatts to 8 gigawatts in size, according to documents the company filed with the SEC.

SB Energy’s existing investors include SoftBank and OpenAI. SoftBank had previously held $5.8 billion worth of Nvidia stock, which it sold in November to help fund other AI investments.

The data center and power developer will build a 9.2 gigawatt natural gas power plant on the site, which is land owned by the U.S. Department of Energy. The site previously enriched uranium for the U.S. nuclear arsenal and for U.S. Navy submarines.

The power plant is expected to cost $33 billion. The steep sum reflects the skyrocketing costs of building natural gas power plants, which have risen 66% in the last two years, according to BloombergNEF.

By the time SB Energy’s power plant and others are completed, they’ll be competing for natural gas with export markets, a confluence that could triple natural gas prices in some parts of the country.

Topics

Subscribe for the industry’s biggest tech news

• 

  Apps

  WordPress.com targets the next generation of web creators with a free student plan

  • Sarah Perez

  53 minutes ago

• 

  Transportation

  Uber adds Zipline drones to its Eats delivery network

  • Sean O'Kane

  3 hours ago

• 

  Fundraising

  Wispr raises $280M at $2B valuation as it looks beyond dictation

  • Ivan Mehta

  3 hours ago