NVDA: Nvidia Faces Massive Tailwinds from OpenAI Data Center Expansion

Summary: OpenAI’s global data center push could add billions to Nvidia’s order book

Sep 2 - Nvidia (NVDA, Financial) could see another wave of demand as OpenAI ramps up plans for data centers running at gigawatt scale. Reports suggest OpenAI is considering a one-gigawatt facility in India, alongside additional sites in the United States and the Middle East. Each project represents billions in potential hardware orders, and Nvidia's platforms sit at the center of that buildout.

Management has estimated that a single one-gigawatt “AI super-factory” could need roughly $35 billion worth of Nvidia hardware plus $15 billion in networking and supporting equipment. That puts the total around $50 billion per site, with even greater upside if projects scale larger.

OpenAI already partnered with Oracle (ORCL, Financial) to deliver 4.5 gigawatts of capacity in the U.S. and recently announced a one-gigawatt cluster in Abu Dhabi. Adding India to the mix highlights how quickly capacity is spreading globally.

While risks remain, such as financing, energy supply, and competition from rival chipmakers, the momentum around AI infrastructure still favors Nvidia's hardware, software stack, and upgrade cycles.

For investors, the key watchpoints include confirmed project starts, firm purchase orders, and evidence that AI model usage continues to climb.