Nvidia Provides Up to $105 Billion in Guarantees for U.S. AI Data Centers

en.Wedoany.com Reported - On August 17, Nvidia signed multiple residual value guarantee agreements with SB Energy, providing up to $105 billion in credit support for leases related to approximately 4.25 gigawatts of IT load in the initial phase of the PORTS-Pike Technology Park in the United States, while also investing $1.5 billion in SB Energy. An OpenAI-affiliated company will serve as the data center tenant, with SB Energy responsible for project construction, ownership, and operation.

Nvidia's guarantee obligations do not cover the full construction cost of the data centers, nor do they mean the company will immediately pay $105 billion. Under the agreements, only after triggering events such as OpenAI's bankruptcy leading to a lease default or failure to fulfill rent payment obligations does Nvidia need to cover the shortfall between the proceeds from re-leasing or selling the projects and the agreed minimum lease value. The cumulative cap on initial guarantee obligations is $105 billion, and OpenAI will compensate Nvidia for any amounts actually paid out under the related guarantees.

These agreements correspond to approximately 4.25 gigawatts of IT load and will, in principle, take effect after each facility meets delivery conditions and the corresponding leases commence, with the term extending up to 20 years from the start of the leases. Nvidia may also decide at its own discretion whether to provide credit support for the remaining approximately 3.75 gigawatts of capacity, bringing the park's planned IT load to approximately 8 gigawatts.

The PORTS-Pike Technology Park is located in Pike County, Ohio, United States, spanning private land and the former Portsmouth Gaseous Diffusion Plant remediation site managed by the U.S. Department of Energy. OpenAI has signed agreements to secure approximately 8 gigawatts of IT capacity at the park and will begin paying rent based on the capacity actually constructed and delivered. The data centers will adopt Nvidia's DSX AI factory platform, covering GPUs, CPUs, and networking equipment, making Nvidia the exclusive AI computing infrastructure supplier for the park.

Supporting energy infrastructure is being advanced by SB Energy and SoftBank Group, with plans to build at least 10 gigawatts of new power generation capacity and invest at least $4.2 billion in partnership with AEP Ohio to develop regional grid and transmission infrastructure. The project's planned capacity is expected to come online in phases starting in 2028, with the overall construction period continuing through 2032. OpenAI estimates that the construction phase will create approximately 35,000 jobs, with about 2,500 long-term positions established after project operations begin.

Nvidia's $1.5 billion investment this time will make it an investor in SB Energy alongside SoftBank Group and OpenAI. Project development still requires the fulfillment of conditions such as infrastructure, construction permits, environmental reviews, and financing, and the initial guarantee agreements will also take effect after the corresponding leased facilities reach a service-ready state.