Nvidia to Buy SB Energy in $1.5 Billion Deal
The acquisition secures critical power and land capacity to host exclusive AI factories amid surging global demand for compute infrastructure.
Nvidia (NVDA) agreed to acquire SB Energy for $1.5 billion. The structure of the transaction was not disclosed.
Nvidia is pursuing the acquisition to secure land, power, and shell capacity at PORTS-Pike. The company intends to use the site to exclusively host Nvidia AI factories, a move designed to meet the extraordinary pace of AI demand.
“AI is becoming infrastructure—the foundation for intelligence in every industry—and land, power, and shell have become vital in the age of AI,” said Jensen Huang, founder and CEO of Nvidia. “Now is the time to scale the AI infrastructure that will power the next industrial revolution,” Huang added.
The deal follows a pattern of aggressive infrastructure expansion by Nvidia. The company previously invested $2 billion in CoreWeave (CRWV) to accelerate the buildout of more than 5 gigawatts of AI factories. Nvidia also entered into a $3.4 billion, five-year AI Cloud contract with IREN to support the deployment of up to five gigawatts of DSX-aligned infrastructure.
Beyond power and land, Nvidia has targeted the hardware supply chain to support its gigawatt-scale ambitions. The company made separate $2 billion investments in Lumentum (LITE) and Coherent (COHR) to advance U.S.-based manufacturing and R&D for the optics technology required to scale AI networks.