NVIDIA to invest $3B in power infrastructure developer Lancium
What's the story
NVIDIA will invest up to $3 billion in Lancium, a power infrastructure developer and the company behind the Stargate data centre campus in Texas. The investment is expected to help Lancium expand its operations as it explores a potential IPO in 2027, according to The Information. The deal will see NVIDIA take an initial stake of roughly 20% in Lancium for an investment of $2 billion. If certain conditions are met, including grid hookups, NVIDIA could invest another $1 billion.
Project collaboration
Stargate project
The Stargate project is a collaborative effort between SoftBank, OpenAI, and Oracle to build data centers.
The initiative was announced by US President Donald Trump in January. He had said that these companies would invest up to $500 billion in funding infrastructure for artificial intelligence (AI).
Lancium owns the 1,000-acre Lancium Clean Campus in Abilene, Texas, Stargate's first operational site.
Growth potential
IPO in 2027
The capital from NVIDIA is expected to help Lancium expand its operations.
The company is also exploring a potential initial public offering (IPO) in 2027.
Under the terms of the deal, Lancium and its portfolio of land and power connections have an enterprise value of around $10 billion.
Neither NVIDIA nor Lancium has commented on the matter yet.