Nvidia to Invest Up to $3 Billion in Lancium, Developer Behind Stargate Data Center Campus

Chipmaker Nvidia has agreed to invest up to $3 billion in Lancium, the power infrastructure developer behind the Stargate data center campus in Texas, according to a report by the Information on Friday. The move underscores Nvidia's deepening push into the energy and data center ecosystem that supports the rapid expansion of artificial intelligence infrastructure.

Under the terms of the deal, Nvidia will make an initial investment of $2 billion, securing a roughly 20 percent stake in Lancium, which is backed by private equity firm Blackstone. The chipmaker could inject an additional $1 billion if Lancium meets certain operational thresholds, including progress on grid hookups, the report said, citing people familiar with the matter. Lancium and its portfolio of land and power connections are valued at an enterprise value of around $10 billion as part of the transaction.

The capital injection is expected to help Lancium scale its operations as the company explores a potential initial public offering in 2027, according to the report. Lancium owns the 1,000-acre Lancium Clean Campus in Abilene, Texas, which serves as the first operational site of the Stargate initiative. Stargate is a joint venture between SoftBank, OpenAI, and Oracle aimed at building massive data center capacity for artificial intelligence workloads. The project was announced in January by U.S. President Donald Trump, who said the companies would invest up to $500 billion to fund AI infrastructure across the country.

The investment marks a notable shift for Nvidia, traditionally known as a designer of graphics processing units and AI chips, as it moves further into the physical infrastructure layer of the AI economy. By backing Lancium, Nvidia gains strategic exposure to power and site development, areas that have become critical bottlenecks for AI data center deployment. The deal also reflects a broader industry trend where major technology players are securing energy assets and land ahead of surging demand from AI-driven computing loads.

Nvidia and Lancium did not immediately respond to Reuters' requests for comment. The transaction, if completed, would strengthen Lancium's balance sheet and position it for continued growth as part of the Stargate program, which aims to become one of the largest AI data center buildouts in the United States.