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

Nvidia is set 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 infrastructure layer of the artificial intelligence boom, as chipmakers increasingly seek to secure power and site availability for large-scale AI computing.

The chipmaker will make an initial investment of $2 billion for a stake of roughly 20 percent in Lancium, which is backed by Blackstone, the report said. Nvidia could inject an additional $1 billion if Lancium meets certain performance thresholds, including grid hookups, according to people familiar with the matter. Under the terms of the deal, Lancium and its portfolio of land and power connections carry an enterprise value of around $10 billion.

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 to build data centers, and was announced in January by U.S. President Donald Trump. The project is expected to channel up to $500 billion into infrastructure for artificial intelligence.

The fresh capital is expected to help Lancium expand its operations as it explores a potential initial public offering in 2027, the report added. Nvidia and Lancium did not immediately respond to Reuters' requests for comment.

The investment highlights a broader trend among AI chip leaders to move beyond silicon and into energy and site infrastructure, where power availability has become a critical bottleneck for data center growth. By tying capital to grid milestones, Nvidia appears to be aligning its investment with the operational realities of scaling AI infrastructure, potentially setting a template for future strategic bets in the sector.