Nvidia to invest initial $2B for ~20% stake in Blackstone-backed Lancium (up to $3B total), valuing the Stargate Texas power developer at ~$10B. Details on 1.2 GW Abilene campus, 4 GW secured capacity, IPO plans, and Nvidia stock context.
Nvidia plans to invest up to $3 billion in Blackstone-backed Lancium, the power infrastructure developer behind the Stargate AI data center campus in Abilene, Texas, according to a report by The Information. The chipmaker will initially put in $2 billion for a roughly 20% stake, with another $1 billion possible if Lancium meets milestones such as grid hookups. The deal values Lancium’s land and power assets at an enterprise value of around $10 billion. Nvidia and Lancium did not immediately comment when contacted by Reuters.
Nvidia to Invest Up to $3 Billion in Lancium for 20% Stake, Valuing Stargate Power Developer at $10 Billion
- Nvidia will invest an initial $2 billion for approximately 20% ownership in Lancium. An additional $1 billion could follow if the company hits thresholds including grid interconnections, potentially raising Nvidia’s stake toward 30%.
- The transaction implies an enterprise value of about $10 billion for Lancium and its portfolio of land and power connections (including debt).
- Lancium owns the roughly 1,000-acre (about 405-hectare) Lancium Clean Campus in Abilene, Texas—the first operational site of the Stargate initiative. The campus features a 1.2 GW interconnect approved by ERCOT.
- Lancium has secured and developed around 4 GW of power on the Texas grid, with additional projects (including roughly 15 GW in the pipeline in some reports) awaiting connection. Specific allocations include 1.2 GW for the OpenAI/Oracle Stargate site in Abilene, about 900 MW for a Crusoe/Microsoft data center nearby, 1 GW for a QTS project in Turkey, Texas, and 1 GW for a Crusoe site in Childress.
- Blackstone previously invested more than $500 million in Lancium and holds a significant stake (reports have cited roughly 50% in earlier coverage). Lancium secured $600 million in debt financing in 2025 to advance the Abilene campus and other projects.
- Capital from the Nvidia deal is expected to support Lancium’s expansion as it explores a potential IPO in 2027.
- Stargate is a joint venture involving SoftBank, OpenAI, and Oracle (with other partners noted in some contexts). Announced in January 2025 by President Donald Trump, the project targets up to $500 billion in AI infrastructure investment. The Abilene campus is planned for about 4 million square feet across eight buildings and 1.2 GW of capacity, with construction continuing into early 2027 and involving thousands of workers.
Nvidia Shares Rise 2.27% to $223.96, Post Best Weekly Gain in Over a Year Amid AI Demand; Lancium Deal News Follows Close
Nvidia shares closed up 2.27% at $223.96 on Friday, August 7, 2026, contributing to an approximately 11.6% weekly gain—the stock’s best weekly performance in more than a year and a record weekly market-cap increase of roughly $562 billion, according to market data. The broader weekly rally was driven by strong AI demand signals, including hyperscaler spending commentary and endorsements of Nvidia’s technology (such as comments from Elon Musk on SpaceX’s use of Nvidia systems).
The Lancium report, carried by Reuters and other outlets over the weekend, arrives amid ongoing investor focus on power as the critical bottleneck for AI data centers. While the specific deal news emerged around or after Friday’s close and markets were closed for the weekend, it reinforces Nvidia’s strategy of investing across the AI ecosystem (including prior multi-billion-dollar commitments in photonics and infrastructure firms). Blackstone shares also rose about 2.8% on Friday. No immediate, isolated attribution of the Lancium news to Friday’s move has been widely reported, as the primary catalysts for the week’s gains were broader AI spending and product endorsements. Nvidia’s market capitalization stood near $5.3–5.45 trillion around the period.
Power Bottleneck Drives Nvidia’s Push Into Energy Infrastructure as Lancium Scales Texas AI Campuses
Power availability has become one of the biggest constraints on AI growth. Data centers, especially those running large language models and training clusters, require enormous, reliable electricity. Texas, with its ERCOT grid, abundant land, wind and solar resources, and relatively flexible permitting, has emerged as a major hub.
Lancium evolved from earlier flexible-load and Bitcoin-mining roots into a specialist in gigawatt-scale “Clean Campuses” that combine grid interconnections, onsite generation (including natural gas for reliability and bridge power), renewables, and storage. Its Abilene site is the flagship of Stargate, where Crusoe has developed data center buildings for Oracle/OpenAI workloads (with Nvidia GPUs, including Blackwell systems). Construction of the first phases began in 2024; early buildings came online in 2025, with full 1.2 GW targeted for later completion.
Nvidia has increasingly used its cash reserves to invest directly in the AI supply chain beyond chips—supporting capacity, optics, networking, and now power infrastructure—to accelerate deployment for customers. Earlier 2026 examples include multi-billion-dollar investments in photonic and related firms. Lancium’s pipeline and Blackstone backing position it to scale further across Texas sites. The $500 billion Stargate ambition (initial phases far smaller) underscores the scale of U.S. AI infrastructure buildout.
What’s Next: Nvidia-Lancium Deal Closing, Grid Expansion, Abilene Build-Out and Potential 2027 IPO
- Confirmation and closing of the Nvidia-Lancium investment, subject to any customary conditions.
- Progress on Lancium’s additional grid hookups and expansion of its multi-GW Texas portfolio, which would unlock the contingent $1 billion.
- Continued build-out and energization of the Abilene Stargate campus (targeting further capacity through 2026–early 2027) and other sites.
- Lancium’s exploration of a 2027 IPO, potentially supported by the new capital and growth in contracted power.
- Broader Stargate developments across additional U.S. locations and any further Nvidia ecosystem investments.
- Market monitoring of Nvidia’s stock reaction once trading resumes, given the strategic nature of securing power for AI customers.
Neither Nvidia nor Lancium has publicly confirmed the details reported by The Information.