OpenAI Wants To Lease a Massive New Data Center. It Is Reportedly Discussing a Backstop Worth Hundreds Of Billions With Nvidia

OpenAI and Nvidia are in talks about a backstop of hundreds of billions to fund the former's plan to lease a massive new data center, according to a new report.

CNBC detailed that the deal would allow OpenAI to raise debt for the project using Nvidia's credit as backing strength. That would cover the lease and construction debt, while the companies are separately discussing the use of Nvidia chips inside the center.

The outlet added that the facility, which once functioned as an uranium enrichment, would consume an amount of power similar to the one needed to fulfill the annual power consumption of 8 million U.S. households. It could end up costing $500 billion.

The construction of data centers has faced opposition from Americans and several officials. Earlier this month New York became the first U.S. state to temporarily halt construction of large new data centers.

Gov. Kathy Hochul announced a one-year moratorium on the construction of such facilities. State officials said the pause applies to new facilities expected to consume at least 50 megawatts of electricity.

The governor said the decision was driven by concerns that large data centers could increase electricity costs, strain water resources and place additional pressure on local communities. Hochul also said she will pursue legislation repealing New York's sales tax exemption for hyperscale data centers.

"As data center development threatens to hike up utility bills, deplete our natural resources, and create uncertainty for New Yorkers, it's my responsibility to take action and lead," Hochul said.

According to the governor's office, the state's Department of Environmental Conservation will not issue discretionary permits for covered projects during the one-year moratorium unless applications have already been deemed complete, Reuters reported.

Elsewhere, a survey conducted by CBS News/YouGov, found that 50 percent of respondents said they did not want to live near a data center. Only 20 percent said they would favor living near one, and the remaining 30 percent of respondents were unsure.

Most said they were worried about the potential impact on local resources such as water and electricity, with 63 percent of respondents saying the impact would be mostly bad. There were also concerns about the environment generally, with 60 percent worried that data centers were mostly harmful.