Nvidia is planning to invest up to $3 billion in Lancium, a Blackstone-backed data center developer, as the chipmaker seeks to secure the power infrastructure needed to support the rapid expansion of artificial intelligence, The Information reported.
The company would initially invest $2 billion for a 20% stake in Lancium, according to people familiar with the matter. Nvidia could commit a further $1 billion if Lancium meets certain targets, including milestones related to connecting its facilities to the electricity grid.
Neither Nvidia nor Lancium has confirmed the reported terms.
The potential investment would mark a significant step in Nvidia’s efforts to address one of the biggest constraints facing the AI industry. As demand for computing infrastructure grows, access to sufficient electricity has emerged as a critical obstacle to the construction and operation of large data center campuses.
Nvidia has previously supported parts of the AI ecosystem through financing arrangements involving customers and infrastructure partners. Taking a direct equity stake in Lancium would extend that strategy into the energy and data center infrastructure required to operate its chips.
Houston-based Lancium is one of the developers behind the Stargate data center campus in Abilene, Texas. The company was founded in 2018 and initially developed technology that allowed power-intensive computing operations to adjust their electricity consumption rapidly in response to grid conditions.
Lancium first applied the technology to cryptocurrency mining, where computing loads can be reduced when electricity demand rises. Following a downturn in bitcoin-mining economics, the company shifted its focus toward AI infrastructure.
In July 2024, Lancium and Crusoe Energy Systems announced plans to develop an initial 200-megawatt AI data center in Abilene. The facility represents the first phase of a campus designed to reach 1.2 gigawatts of capacity.
The site, known as Stargate 1, is expected to support a large cluster of Nvidia AI chips across eight data center buildings. Its energy infrastructure is set to include battery storage and access to nearby solar and wind generation.
Lancium’s demand-response technology could allow the campus to adjust its power consumption within seconds, helping grid operators manage the substantial and fluctuating electricity requirements of high-performance AI systems.
For Nvidia, an investment in Lancium would provide greater exposure to the infrastructure supporting sales of its next-generation chips. It would also serve as a hedge against delays caused by limited grid capacity, lengthy connection processes and rising competition for electricity among data center operators.
