Nvidia will invest up to $3 billion in power infrastructure developer Lancium, the company behind the Stargate data center site in Abilene, Texas. The deal pairs a $2 billion stake purchase with a $1 billion performance payment tied to new grid connections, extending Nvidia's reach from chips into the electricity that powers them.
Nvidia is putting billions behind the power grid, not just the processors that run on it. According to a report from The Information, the chipmaker will invest up to $3 billion in Lancium, a power infrastructure developer, in a deal split into two parts.
A two-part bet on Lancium
The first part is a $2 billion payment for roughly a 20% equity share in Lancium. The second part, an additional $1 billion, depends on Lancium meeting specific goals, mainly securing more grid interconnections.
Lancium's flagship site, the 1,000-acre Lancium Clean Campus in Abilene, Texas, was the first operating location for Stargate, the AI infrastructure venture formed by SoftBank, OpenAI, and Oracle. President Donald Trump unveiled Stargate in January, with the partners promising to invest up to $500 billion in AI infrastructure over time. Lancium plans to use Nvidia's capital to expand operations as it considers an IPO as early as 2027.
Electricity as the bottleneck
The investment extends a pattern Nvidia has pursued more aggressively this year. Instead of only selling processors into the AI buildout, the company is increasingly taking stakes in the infrastructure layer that makes those chips usable at scale. Reports throughout 2026 have pointed to electricity, not chip supply, as the factor limiting how fast hyperscalers and AI labs can bring new capacity online.
Nvidia CEO Jensen Huang addressed the logic at a private gathering of family offices and financial firms in Taipei, arguing that returns on AI infrastructure investment have reset significantly over the past six months. He described what AI infrastructure requires in three words: land, power, and funding, in that order. For Lancium, the backing also works two ways — it funds growth ahead of a possible 2027 listing, and it puts one of the most prominent AI companies on its cap table before that listing happens.
Institutional holders keep adding
Hedge fund ownership of Nvidia grew from 264 funds in Q4 2025 to 275 funds in Q1 2026, based on 13F filing data. Fisher Asset Management holds the largest stake among institutional investors, with a position of $15.4 billion.
By backing the grid connections that gigawatt-scale data centers need, Nvidia gives itself longer visibility into demand for its Blackwell and future GPU architectures.
Source: Insider Monkey
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