Nvidia to Invest Up to $3 Billion in Lancium, Power Developer Behind Stargate AI Data Center

Aug 8, 2026

Nvidia is investing up to $3 billion in power infrastructure developer Lancium, securing a stake in the physical layer powering the Stargate AI data center initiative. The deal begins with an initial $2 billion for a 20% stake, valuing the Blackstone-backed developer at $10 billion. An additional $1 billion is tied to grid-connection milestones. The capital will fund Lancium's expansion ahead of a potential 2027 IPO, highlighting how grid access has become a primary bottleneck in the AI expansion race.

Nvidia investment in Lancium

▪Nvidia's investment in Lancium begins with an initial $2 billion tranche for an equity stake of approximately 20% in the Blackstone-backed company.
▪Nvidia's potential additional $1 billion investment in Lancium is conditional, tied to milestones including grid connections and power capacity targets.
▪Nvidia's investment in Lancium is a straight equity stake that excludes credit guarantees for data center construction or binding lease obligations.
▪Nvidia has agreed to invest up to $3 billion in power infrastructure developer Lancium, according to a report by The Information on August 7, 2026.

Power infrastructure as AI constraint

▪U.S. data centers consumed approximately 176 terawatt-hours of electricity in 2023, representing about 4.4% of total U.S. electricity use, according to the Lawrence Berkeley National Laboratory.
▪Securing land with grid access has become a primary bottleneck for artificial intelligence infrastructure expansion due to the massive electricity demands of data centers.

Stargate data center campus

▪The Stargate project was announced in January by U.S. President Donald Trump, with participating companies committing to invest up to $500 billion.
▪Stargate is a joint venture between SoftBank, OpenAI, and Oracle to build artificial intelligence data centers.
▪The 1,000-acre Lancium Clean Campus in Abilene, Texas, serves as the first operational site of the Stargate data center initiative.

Lancium enterprise valuation

▪Lancium is backed by global private equity firm Blackstone, which will gain a strategic co-investor in Nvidia through the transaction.
▪Under the investment deal, Lancium and its portfolio of land and power connections are valued at an enterprise value of approximately $10 billion.

Potential 2027 IPO

▪If the conditional $1 billion investment is triggered, Nvidia's ownership stake in Lancium would increase to approximately 30% ahead of any public listing.
▪The capital injection from Nvidia is expected to help Lancium expand its operations as it explores a potential initial public offering in 2027.