Nvidia has agreed to invest up to $3 billion in Lancium, the power infrastructure company behind the Stargate data center campus in Abilene, Texas, according to a report from The Information.

The initial investment of $2 billion would give Nvidia a roughly 20% stake in Blackstone-backed Lancium. An additional $1 billion is conditional and tied to Lancium meeting specific milestones related to grid connections and power capacity. If triggered, Nvidia's stake would rise to approximately 30%.

The deal values Lancium's full portfolio — including land, power connections, and debt — at around $10 billion in enterprise value.

NVDA stock rose 2.27% following the news.

Nvidia's investment is a straight equity stake and does not include credit guarantees for data center construction or any lease obligations, according to The Information.

https://x.com/PhotonCap/status/2085959398900613459

$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…

— Photon Capital (@PhotonCap) August 8, 2026

Lancium's Role in AI Infrastructure

Lancium is not a chipmaker or cloud provider. It is a power and land developer, making it a critical component in the current AI infrastructure buildout. The company owns the 1,000-acre Lancium Clean Campus in Abilene, Texas, which serves as the first operational location under the Stargate initiative. Texas has drawn growing data center investment due to its deregulated power market under ERCOT and the availability of large tracts of land with transmission access.

Data centers require enormous amounts of electricity, and securing land with grid access has become one of the biggest bottlenecks in AI infrastructure expansion. Major cloud operators including Microsoft, Amazon, and Google have each moved to secure dedicated power agreements — including nuclear and renewable contracts — to keep pace with AI workload growth. Lancium's portfolio directly addresses this challenge. The capital from Nvidia is expected to help the company scale its operations as demand for AI-ready sites continues to grow.

The Stargate Project

Stargate 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.

IPO Outlook for 2027

The investment also positions Lancium for a potential public market debut. The company is exploring an IPO in 2027, and Nvidia's backing provides both capital and credibility heading into that process. If the full $3 billion investment is realized, Nvidia would become 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.