NVIDIA is partnering with SB Energy to secure power capacity at the PORTS-Pike Technology Campus in Portsmouth, Ohio, with OpenAI set to be the tenant of a massive AI factory. The initial deployment will provide 4.25 gigawatts of capacity, and the site can support multiple upgrade cycles over 20 years.
The shape of the deal
Under the arrangement, NVIDIA will secure LPS capacity at the campus, and OpenAI will build and operate the AI factory. The first phase is expected to deliver 4.25 gigawatts, with an option for NVIDIA to extend the deal to cover the remaining 3.75 gigawatts on site. That would bring total capacity to 8 gigawatts.
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Each generation of NVIDIA AI factory systems at PORTS-Pike could represent roughly 1.5 million NVIDIA GPUs and $150–200 billion in NVIDIA revenue. The site's long lifespan means it could host several upgrade cycles, not just one.
What NVIDIA is actually guaranteeing
NVIDIA's support is limited to defined portions of lease and power payments, structured as a residual-value commitment — not a full cost guarantee. OpenAI will pay the lease itself. The guarantee becomes effective in phases as data centers are placed in service between 2028 and 2030.
That phased structure matters. If OpenAI's buildout slips or its economics deteriorate, NVIDIA's exposure grows only as each phase comes online. It's a contingent liability, not an upfront bill.
OpenAI's long-term compute pledge
OpenAI has committed to substantial deployments of NVIDIA AI infrastructure through 2030, representing approximately 12 gigawatts of NVIDIA compute, with an opportunity to expand to 16 gigawatts. The total opportunity is roughly $600 billion of NVIDIA compute over that period.
That's a multi-year revenue stream, but it's also a bet on OpenAI's ability to keep paying. The residual-value commitment means NVIDIA is effectively underwriting part of that expansion — if OpenAI walks away, NVIDIA is left holding the bag on lease and power costs.
The risk underneath
The deal is bullish for NVIDIA's top line, but the guarantee structure adds a layer of risk that's easy to miss in the headline numbers. The phased activation between 2028 and 2030 means the real test comes later this decade. If AI demand holds, this locks in a massive revenue pipeline. If it doesn't, NVIDIA's balance sheet could feel the strain.
For now, the first data centers are expected to be placed in service in 2028, at which point the guarantee kicks in. That's the next concrete milestone to watch.
