US Markets
Home›US Markets›M&A & Deals›NVIDIA to invest up to $3 billion in power infrastruct…
NVIDIA to invest up to $3 billion in power infrastructure developer Lancium
The plan calls for a $2 billion initial equity stake and an extra $1 billion tied to securing additional grid interconnections.
NVIDIA is planning to invest up to $3 billion in Lancium, a power infrastructure developer, as part of its push to support AI chip infrastructure beyond data center hardware, according to a report from The Information published August 7.
The deal is structured in two parts, with an initial $2 billion for a roughly 20% equity share, followed by an additional $1 billion contingent on Lancium meeting specified goals, including securing additional grid interconnections.
Lancium’s flagship asset is a 1,000-acre Clean Campus in Abilene, Texas, which is described as the first operating site of Stargate, an AI infrastructure joint venture formed by SoftBank, OpenAI, and Oracle.
The article also notes that Lancium plans to use NVIDIA’s capital to expand operations and is considering a potential initial public offering as early as 2027, while linking the strategy to the idea that electricity constraints have limited how quickly AI capacity can be brought online.