Nvidia invests up to $3B in Lancium to build out AI factory infrastructure

Nvidia is making a bet that the next bottleneck in AI isn’t chips. It’s power. The company announced a strategic investment of up to $3 billion in Lancium, a Texas-based firm that develops power infrastructure for AI data centers. The initial tranche is $2 billion, which buys Nvidia roughly a 20% equity stake and values Lancium at approximately $10 billion. What Lancium actually does Lancium’s flagship asset is a 1,000-acre Clean Campus in Abilene, Texas. That site is the first operational location under the Stargate AI initiative, the high-profile project that brings together OpenAI, Oracle, and other major technology players to build out large-scale AI compute infrastructure across the US. Lancium already has a tenant in Crusoe, an AI cloud company that has signed agreements to operate on the campus. The model is closer to industrial real estate than traditional tech: rather than operating data centers itself, Lancium builds and controls land and power capacity, then leases that capacity to operators who need it. Blackstone moved first, investing over $500 million in Lancium in November 2024 to support campus development across West Texas, with a combined target exceeding 5 GW of...