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Nvidia plans up to $3 billion investment in Lancium power infrastructure
The initial $2 billion stake would be about 20%, with an extra $1 billion contingent on grid hookups, as Lancium looks toward a potential IPO in 2027.
Nvidia plans to invest up to $3 billion in power infrastructure developer Lancium, which is behind the Stargate data center campus in Texas, according to The Information as cited by Reuters. The chipmaker would make an initial $2 billion investment for a stake of roughly 20% in Lancium, according to the report.
The deal also includes a potential additional $1 billion if certain thresholds are met, including grid hookups, the report said, citing people familiar with the matter. Under the agreement, Lancium and its portfolio of land and power connections have an enterprise value of around $10 billion, according to The Information.
The capital is expected to help Lancium expand operations as it explores a potential initial public offering in 2027, the report said. Nvidia and Lancium did not immediately respond to Reuters requests for comment.
Stargate is a joint venture between SoftBank, OpenAI, and Oracle to build data centers. Reuters said the project was announced in January by U.S. President Donald Trump, who described plans for up to $500 billion in infrastructure investment for artificial intelligence.