Nvidia Plans Up to $3 Billion Investment in Lancium, Taking ~30% Stake

Nvidia plans to invest up to $3 billion in power infrastructure developer Lancium. The initial $2 billion investment will give Nvidia about a 20% equity stake. After the developer achieves additional power interconnection milestones, Nvidia will invest an additional $1 billion, raising its stake to roughly 30%. The transaction values Lancium at an enterprise value of about $10 billion, including debt. The investment is purely equity and does not involve credit guarantees for data center construction or leasing.

Lancium is the power infrastructure provider behind the "Stargate" AI campus being built by OpenAI and Oracle in Abilene, Texas. It has secured and developed 4 gigawatts of power resources on the Texas grid, with another 15 gigawatts of interconnection projects in progress. Its secured power contracts cover multiple projects: 1.2 gigawatts supply the OpenAI and Oracle campus in Abilene, 900 megawatts are for a new data center that partner Crusoe is building in Abilene for Microsoft, QTS Data Centers recently signed a 1-gigawatt contract in Turkey, Texas, and Crusoe has another 1-gigawatt project under construction in Childress, Texas. Additionally, Lancium has secured land in Texas with the potential to host 15 gigawatts of power, currently awaiting grid interconnection permits.

In the quarter ending April 2026, Nvidia invested a total of $18.6 billion in private companies and infrastructure funds, exceeding its total investment for the previous full year. Since the start of 2026, Nvidia has invested $2 billion each in cloud service providers CoreWeave and Nebius, and has completed investments in network equipment makers Lumentum and Coherent as well as semiconductor company Marvell. Nvidia is also considering providing credit guarantees for other projects, including a 10-gigawatt data center project in Ohio involving OpenAI and SoftBank.

Texas Governor Greg Abbott this week ordered a moratorium on new data center grid interconnection applications, requiring further review of such projects. Lancium's partner utility, American Electric Power, has completed line studies needed to supply power to its campuses, and the projects are at an early stage of the approval process. Lancium is considering an initial public offering in 2027, and this financing provides capital to support its expansion.