Nvidia Buys Stake In Data Center Power Company

Chipmaking giant Nvidia is further expanding its investment in the data center infrastructure ecosystem as the need for more power to fuel artificial intelligence competition keeps growing.

The California-based company with a $5T market cap has made a minority investment in data center power company Cloverleaf Infrastructure, Nvidia announced Friday. The terms of the deal weren’t disclosed, but Nvidia is expected to invest several hundred million dollars in the company, The Wall Street Journal reported.

Cloverleaf’s business is based on signing power agreements with utilities so developers can build on land and have access to reliable power sources, something that has become increasingly difficult over the last couple of years.

Since its founding in 2024, the company has sold projects totaling more than 7 gigawatts of power to developers.

The company launched with $300M in commitments from Sandbrook Capital and NGP Energy Capital.

The partnership will allow Cloverleaf to use Nvidia DSX, a platform that helps design and optimize new AI data centers, including site, power, cooling, computing and facility decisions.

“AI factories are the infrastructure of the intelligence age, and land, power and shell are their foundation,” Nico Caprez, vice president of global AI infrastructure growth at Nvidia, said in a statement. “Together, we are accelerating the build-out of AI infrastructure that will strengthen America’s energy infrastructure and power the next wave of innovation.”

J.P. Morgan Securities was the exclusive financial adviser for the deal, and Kirkland & Ellis served as legal counsel to Cloverleaf.

Nvidia is the leading chip supplier for data centers, and the AI boom has led its revenues to skyrocket and turned it into the world’s most valuable company. Over the past year, it has begun expanding its investment into other segments of the industry, including building out the infrastructure needed to bring more data centers online.

In May, Nvidia and data center equipment manufacturer Corning announced plans to build three U.S. plants in Texas and North Carolina. The facilities would allow the manufacturer to multiply its production capacity of optical connectivity by 10 and fiber by 50%.

Earlier this month, Nvidia entered into agreements with Apollo Global Management, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to pour at least $500B into the development of artificial intelligence infrastructure.