Nvidia Pours $3 Billion into Texas Data Center Venture

Nvidia is set to invest up to $3 billion in Lancium, a power infrastructure developer behind the Stargate data center campus in Texas. The initial investment of $2 billion will give Nvidia a roughly 20% stake in Lancium, which is backed by private equity firm Blackstone.

The deal also includes an option for Nvidia to invest an additional $1 billion if Lancium meets certain thresholds, such as grid hookups. This could bring the total value of Lancium's portfolio and land holdings to around $10 billion.

Lancium is a key player in the Stargate initiative, a joint venture between SoftBank, OpenAI, and Oracle to build data centers. The project was announced in January by former U.S. President Donald Trump, who said that the companies would invest up to $500 billion to fund infrastructure for artificial intelligence.

The investment from Nvidia is expected to help Lancium expand its operations as it explores a potential initial public offering (IPO) in 2027.