TLDR
- Nvidia is set to invest up to $3 billion in Lancium, the power infrastructure company behind the Stargate data center campus in Texas.
- The initial investment is $2 billion, giving Nvidia a roughly 20% stake in the Blackstone-backed company.
- An additional $1 billion could follow if Lancium hits certain power capacity targets.
- The deal values Lancium at around $10 billion in enterprise value.
- The investment is expected to support Lancium’s growth and a potential IPO in 2027.
Nvidia is making a major bet on power infrastructure. The chipmaker has agreed to invest up to $3 billion in Lancium, the company behind the Stargate data center campus in Abilene, Texas, according to a report from The Information.
$NVDA is putting capital directly into the land-and-power layer of AI infrastructure, not just GPUs.
– $NVDA reportedly plans to invest an initial $2 billion for roughly 20% of Lancium, with up to another $1 billion tied to milestones including grid connections.
– The deal… pic.twitter.com/Xyd5hUmY4p
— Photon Capital (@PhotonCap) August 8, 2026
NVDA stock was up 2.27% following the news.
The initial investment stands at $2 billion, which would hand Nvidia a roughly 20% stake in Lancium. The remaining $1 billion is conditional, tied to Lancium hitting specific milestones around grid connections and power capacity.
Lancium is backed by Blackstone and owns the 1,000-acre Lancium Clean Campus in Abilene, Texas. That site serves as the first operational location under the Stargate initiative.
The deal values Lancium’s full portfolio, including land, power connections, and debt, at approximately $10 billion in enterprise value.
Importantly, Nvidia’s investment is a straight equity stake. It does not include credit guarantees for data center construction or any lease obligations, according to The Information.
Stargate itself is a joint venture between SoftBank, OpenAI, and Oracle. The project was announced in January by President Donald Trump, with commitments of up to $500 billion for AI infrastructure across the United States.
Why Lancium Matters
Lancium is not a chip company or a cloud provider. It is a power and land developer, and in the current AI buildout, that makes it a critical piece of the puzzle.
Data centers require enormous amounts of electricity. Securing land with grid access is now one of the biggest bottlenecks in AI infrastructure expansion. Lancium’s portfolio addresses exactly that.
The capital from Nvidia is expected to help Lancium scale its operations as demand for AI-ready sites continues to grow.
IPO Watch for 2027
The investment also sets Lancium up for a potential public market debut. The company is exploring an IPO in 2027, and Nvidia’s backing gives it both capital and credibility heading into that process.
If the additional $1 billion investment is triggered, Nvidia’s stake would climb to around 30%, making it a meaningful shareholder ahead of any listing.
Neither Nvidia nor Lancium responded to Reuters’ requests for comment at the time of reporting.
The deal was first reported by The Information on Friday, citing three people familiar with the transaction.
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