Nvidia may invest up to $3 billion in Lancium, a US power firm linked to the Stargate data center project in Texas.
The planned investment was reported on Friday, August 7. The deal could give Nvidia a major stake in Lancium as demand for artificial intelligence data centers grows.
Nvidia is expected to invest about $2 billion at first. This could give the chipmaker a stake of about 20% in Lancium, according to a report by The Information.
Nvidia may invest another $1 billion if Lancium meets certain targets. These targets are said to include new power grid connections.
The deal could value Lancium and its land and power assets at about $10 billion.
The new funding could help Lancium expand its business. The company is also looking at a possible stock market listing in 2027.
Nvidia and Lancium had not given an immediate comment on the reported deal.
Lancium is a power infrastructure company. It owns a large site in Abilene, Texas, known as the Lancium Clean Campus.
The site covers about 1,000 acres. It is the first operating location linked to the Stargate project.
Stargate is a major plan to build data centers for artificial intelligence. The project is backed by SoftBank, OpenAI and Oracle.
US President Donald Trump announced the Stargate plan in January. At the time, the companies said the project could involve as much as $500 billion in investment.
The goal is to build large data center sites that can support the fast growth of artificial intelligence.
AI systems need huge amounts of computing power. That means companies are seeking more advanced chips, large data centers and reliable power supplies.
Nvidia is one of the key companies in the AI chip market. Its chips are widely used to train and run AI systems.
The reported investment in Lancium would give Nvidia a closer link to the power and land needed for future AI data centers.
Power has become a major issue for the data center industry. Large AI sites can use far more electricity than many traditional data centers.
As AI use grows, companies need access to large and stable power supplies. They also need land, cooling systems and strong links to the power grid.
Lancium has focused on this part of the market. Its business connects large power users with sites that can support major computing projects.
The reported deal could therefore give Nvidia more control over an important part of the AI supply chain.
The investment would also strengthen the link between Nvidia and the Stargate project.
Stargate is expected to need large amounts of computing equipment and power as its data center network expands.
Nvidia’s role in the project could become more important as new sites are developed.
The possible deal also comes as investors watch the rapid growth of AI infrastructure spending.
Technology companies have been spending heavily on data centers to support new AI products and services.
This has created strong demand for Nvidia’s chips. It has also increased demand for companies that can provide the land and power needed to run these systems.
Lancium’s possible public listing in 2027 could give the company another way to raise money for growth.
For now, the reported Nvidia investment remains subject to the terms of the deal and any targets tied to the extra funding.
If completed, the investment could make Nvidia one of Lancium’s major shareholders.
It could also mark another major step in the race to build the power and data center network needed for the next phase of artificial intelligence growth.
