OpenAI Negotiates $500 Billion Data Center in Ohio

OpenAI is in advanced negotiations to lease a proposed 10-gigawatt data center campus on federal land in southern Ohio. Developed by SB Energy, a SoftBank subsidiary, the project is estimated to cost over $500 billion, potentially making it the largest data center development ever considered. Under a proposed 20-year lease, OpenAI would control the facility's equipment and chip stacks, with the first phase of operations targeted for 2028. Nvidia is expected to supply the hardware and provide financial guarantees for the lease and project financing.

This venture follows a pattern of infrastructure challenges for the company. Earlier this year, OpenAI paused its Stargate project in the United Kingdom due to regulatory and energy costs, and more recently abandoned expansion plans in Abilene, Texas, alongside Oracle Corp. due to grid reliability concerns and local resistance.

In response to the scale of such projects, the Government of Ohio introduced Substitute House Bill 646. The legislation aims to regulate data center buildouts and establish a new electric rate class to ensure hyperscalers cover all generation and distribution costs, preventing local ratepayers from subsidizing the facilities. This legislative move coincides with a broader national trend; Data Center Watch reports that community opposition blocked or delayed roughly $130 billion in projects during the first quarter of 2026, citing concerns over water rights, land use, and energy consumption.