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OpenAI and Nvidia to invest $500bn in Ohio AI datacenter

OpenAI, Nvidia, and Japanese investors are set to invest $500bn in an AI datacenter in Piketon, Ohio, with operations expected to begin in 2028.

  • OpenAI, Nvidia, and Japanese investors are planning a $500bn investment in an AI datacenter in Piketon, Ohio.
  • The project, which broke ground in March, is expected to open in 2028 and will include an 8GW AI computing facility.
  • Environmental groups have raised concerns about the project's impact, including the construction of a natural gas plant and its location on a former uranium enrichment site.

OpenAI, Nvidia, and Japanese investors are preparing to spend $500bn on what is described as one of the largest artificial intelligence datacenters globally, located in Piketon, southern Ohio. The project, which involves building 8GW of AI computing power, saw a groundbreaking ceremony last March attended by US energy secretary Chris Wright, commerce secretary Howard Lutnick, and Japanese dignitaries.

SB Energy, a SoftBank Group Corp. subsidiary, will own and operate the datacenter. OpenAI has signed a 20-year lease to utilise the computing capacity, deploying Nvidia AI computing infrastructure. The facility is expected to open in 2028.

To power the datacenter, a natural gas plant is planned nearby, funded by a $33bn Japanese investment. However, environmental groups have voiced concerns, particularly as part of the project is situated on a decommissioned uranium enrichment site that operated until 2001. The Ohio Environmental Council's CEO, Carol Kauffman, highlighted potential issues such as greenhouse gas emissions and air pollution from the natural gas facility, along with upstream impacts from fracking and methane leakage.

Locally, the project has generated a mix of hope and concern. Piketon Mayor Billy Spencer noted that while there isn't organised opposition, he feels a range of emotions from positive to skeptical. The project promises 35,000 construction jobs and 2,500 long-term operating jobs in Pike county, an area with a poverty rate of over 19%.

OpenAI announced plans this month to invest $40m in a community grant fund for Pike county and offer a $100 credit to Ohio college students for its ChatGPT AI tools. SB Energy has committed to paying for accelerated cleanup and remediation at the site and stated that Ohio ratepayers will not bear the cost of connecting the facility to the local electricity grid.

Why this matters: The development represents a significant investment in AI infrastructure in the US, potentially bringing substantial economic changes to a high-poverty region, while also raising environmental and health concerns due to its scale and location.

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