NVIDIA Corp. Announces Material Agreement for Portsmouth AI Data Center

What Happened
NVIDIA Corporation announced on August 17, 2026 that it entered into multiple residual value guaranties with SB Energy to advance development of the PORTS Technology Campus (Portsmouth Site) in Pike County, Ohio. The Agreements cover leases for approximately 4.25 gigawatts (GW) of IT load (with NVIDIA able to provide credit support for about an additional 3.8 GW in its sole discretion), and name an affiliate of OpenAI Group PBC as the tenant. NVIDIA’s aggregate payment obligation for its initial commitment under the Agreements is cumulatively capped at $105 billion. The leases are expected to begin becoming ready for service starting in 2028.

Key Details

• Agreement date: August 17, 2026; agreements become effective upon commencement of each applicable lease.
• Capacity: ~4.25 GW covered by the guaranties; option to secure ~3.8 GW more via credit support.
• Financial cap: NVIDIA’s initial cumulative payment obligation capped at $105 billion.
• Trigger events and remedies: If OpenAI becomes insolvent or fails to pay under a lease, NVIDIA would pay shortfalls (difference between guaranteed minimum lease value and amounts recovered) and may (i) assume the lease, (ii) require reletting, (iii) initiate sale, (iv) allow termination, or (v) defer remedies up to one year while paying project costs.
• Termination: NVIDIA’s obligations end on the earliest of the 20th anniversary of a lease’s commencement, OpenAI terminating the lease per its terms, OpenAI achieving a satisfactory credit rating, or other customary events. OpenAI will reimburse and indemnify NVIDIA for amounts NVIDIA actually pays under the Agreements.
• Use of capacity: OpenAI will use the ~4.25 GW to deploy NVIDIA’s DSX full‑stack AI factory platform (subject to limited exceptions). A press release was furnished as Exhibit 99.1.

Why It Matters
This filing signals NVIDIA securing large-scale land, power and shell capacity to host substantial AI compute infrastructure—strengthening its ecosystem relationship with OpenAI and potentially expanding demand for NVIDIA hardware and software. At the same time, the residual value guaranties create a meaningful contingent financial exposure (capped at $105 billion for the initial commitment), though payment is conditional on specified trigger events and lease readiness (expected beginning in 2028) and OpenAI’s indemnity. For investors, the arrangement highlights both upside from expanded AI deployments using NVIDIA’s DSX platform and the importance of monitoring potential future financial obligations tied to lease performance and tenant credit.