• Nvidia's initial guarantees cover about 4.25GW of IT load, with an option to support roughly another 3.8GW
  • OpenAI will lease about 8GW for 20 years, with the first 800MW expected to become available in 2028

The fact

Nvidia has agreed to provide residual-value guarantees for leases covering about 4.25GW of IT load at SB Energy's PORTS-Pike Technology Campus in Pike County, Ohio. Its total payment obligation under the initial guarantees is capped at $105bn. Nvidia can choose to extend credit support to roughly another 3.8GW.

OpenAI will lease about 8GW of capacity from SB Energy for 20 years. SB Energy, a SoftBank-backed energy and data-centre developer, will build, own and operate the campus. Nvidia will be the exclusive AI compute infrastructure provider for the initially supported capacity and is also investing $1.5bn in SB Energy.

The guarantees generally take effect when the relevant leases begin and specified ready-for-service conditions have been met. If OpenAI becomes insolvent and defaults, or fails to make lease payments, Nvidia may have to cover a shortfall between the guaranteed minimum lease value and proceeds from a replacement lease or sale. The first 800MW is expected to become available in 2028.

The assessment

SB Energy must commit capital to land, power and buildings before OpenAI begins paying for completed capacity. Nvidia's guarantee addresses part of that timing risk by providing a backstop if OpenAI later defaults and the leased property cannot recover its guaranteed value through a replacement tenant or sale.

The structure also limits Nvidia's exposure. Its obligation is capped and generally begins only after the relevant capacity has met specified ready-for-service conditions. Nvidia is therefore supporting the value of completed, leased infrastructure rather than financing the entire construction programme. SB Energy remains responsible for developing and owning the campus.

For BTW readers, Nvidia is taking a defined financial role before its equipment is installed. Its guarantee supports part of the value of the capacity intended to host Nvidia systems, while construction and ownership remain with SB Energy.

What to watch

The first 800MW scheduled for 2028 is the key near-term milestone. Watch for financing, power and transmission works, ready-for-service dates and the start of OpenAI's lease payments. Nvidia's decision on the optional 3.8GW will show whether it extends its credit support beyond the initial commitment. Delays to delivery would also defer lease commencement and the associated guarantees.