Nvidia in Talks to Invest in Data-Center Power Developer Cloverleaf Infrastructure
Deal cements chip maker’s role in developing data-center projects at earliest stages
- Nvidia is in advanced discussions to make an investment of several hundred million dollars in Cloverleaf Infrastructure, according to sources.
- Cloverleaf Infrastructure arranges power for data-center projects and has sold projects comprising over 7 gigawatts of powered land.
- By backing power companies early, Nvidia is trying to ensure there will be enough data-center capacity for its products in the future.
Nvidia NVDA -0.33%decrease; down pointing triangle is in advanced discussions to make an investment in Cloverleaf Infrastructure, a company that arranges power for data-center projects, according to people familiar with the deal.
The transaction could be announced as soon as Friday morning, the people said. The exact terms of the deal couldn’t be immediately learned, but Nvidia is expected to invest several hundred million dollars, one of the people said.
In recent months, Cloverleaf had been working with JPMorgan Chase on strategic options, including a potential sale of the business, according to people familiar with the deal. Cloverleaf raised $300 million in 2024, the year it was founded, from energy investors NGP and Sandbrook Capital.
Cloverleaf’s specialty is signing power agreements with utilities so that developers can build on land with access to reliable power. Over the past two years, it has sold projects comprising more than 7 gigawatts of powered land to data-center developers, including sites in Wisconsin for Oracle and OpenAI. The firm has a pipeline of more than 10 gigawatts of power, according to the people.
The Cloverleaf deal helps cement Nvidia’s growing role in supporting the data-center ecosystem at the earliest stages of development. By backing power companies years ahead of when their projects are ready, Nvidia is trying to ensure there will be enough data-center capacity for its products in the future.
This week, Nvidia took an equity stake in SoftBank’s SB Energy, a deal tied to a megacampus in Ohio that OpenAI leased for 20 years.
Earlier this year, Nvidia made a $2 billion investment into Lancium, the power developer behind a campus in Abilene, Texas, where OpenAI rents computing capacity from Oracle, according to people familiar with that deal.
Nvidia now owns 20% of the firm, and its stake could reach 28% following an additional $1 billion investment.