OpenAI-Nvidia mega data center on federal land: a major deal that hasn't broken ground yet
SB Energy has secured a lease on federal land in Ohio for a 10-gigawatt AI data center, with OpenAI in talks to lease the entire facility and Nvidia as a possible credit backer. The DOE fact sheet notes a $40 million Community Benefits Agreement but leaves other implementation details—like transmission costs and water use—unresolved, and local journalism is stretched thin covering a project that has not yet broken ground.
A special report from the Department of Energy (March 2026) and follow-up coverage from Data Center Dynamics and Reuters confirms SB Energy, a SoftBank Group company, has secured a lease at the former Portsmouth Gaseous Diffusion Plant in Pike County, Ohio. The DOE fact sheet explicitly states: 'SB Energy has also committed to a $40 million Community Benefits Agreement to support the surrounding Ohio communities.' This is a specific, binding commitment. However, the fact sheet does not detail transmission infrastructure costs, renewable energy procurement timelines, or water-use mitigation plans—all of which remain to be negotiated before construction can begin.
The project's scale—reported as a 10-gigawatt campus with a potential $500 billion price tag—demands rigorous public oversight. Local journalism, already hollowed out by consolidation, struggles to cover permitting details and community hearings. As Joshua Bowling of SourceNM noted in a related context, 'These are massive corporate interests that have billions of dollars on the line… communities don't really have a lot of time to understand why OpenAI wants to set up in their community so quickly.' The fight now is to ensure that as the deal moves toward construction, binding conditions on renewable energy, water usage, and genuine community consultation are secured before the first shovel hits the ground. Ground has not been broken, according to the DOE announcement and follow-up reports.
The humanitarian alternative
Federal land leases for data centers should be conditional: require 100% hourly matched renewable energy, community benefit agreements that fund local schools and infrastructure, prevailing wage construction, and a clawback provision if promised jobs or capacity don't materialize. The administration could also mandate that any project over 1 GW on federal land undergo a full National Environmental Policy Act review and public hearing, restoring the scrutiny stripped by recent executive actions.
Falsifiable predictions
What this entry claims will happen, and what data would prove it wrong. The Reckoner revisits these against current reality.
- If approved, the Ohio campus will secure a below-market lease rate or tax incentive package exceeding $10 billion over 20 years, based on precedent from prior federal data center deals.
- Local environmental groups will file a lawsuit challenging the federal land transfer within 6 months of any formal lease announcement due to inadequate environmental review.
Grounded in
- OpenAI in Talks to Lease 10 Gigawatt Ohio Data Center with ...
- OpenAI weighs leasing Ohio data center with Nvidia ... - Reuters
- OpenAI eyes $500 billion data center in Ohio, per The Information
- Report: OpenAI and Nvidia in talks to team up for 10-gigawatt data ...
- OpenAI in talks to lease 10GW data center from SB Energy in Ohio
- OpenAI weighs Nvidia-backed lease for 10 GW Ohio data center ...
- OpenAI eyes 10 GW Ohio facility: The Information - Blockspace Media
Original source — excerpted
news OpenAI Eyes 10-Gigawatt Ohio Mega Campus With Nvidia Backing"OpenAI is weighing a long-term lease for a massive data center complex in southern Ohio, a move that could deepen its infrastructure push as demand for AI compu..."