Nvidia Targets 1 Gigawatt by Converting About 130 Telecom Buildings Into Data Centers

Key Facts

Nvidia is exploring converting existing Brightspeed telecommunications buildings into a network of small AI data centers, in a project that could provide about 1 gigawatt of computing capacity, according to a report published by Tom's Hardware on November 6, 2026. Nvidia presented the idea to officials at Apollo Global Management, Brightspeed's parent company, before moving on to discuss site details and available infrastructure. The proposal is an effort to use existing facilities to expand the computing infrastructure needed to run AI applications. The report said Apollo asked Nvidia to submit written plans to Brightspeed. The project remains at the discussion and information-gathering stage, according to the report's details.

Brightspeed operates about 130 buildings across the United States, many of which have existing power infrastructure that could be suitable for running Nvidia servers, according to the report. After presenting the proposal, the company requested additional information and data, along with site visits to some existing locations. These steps allow the facilities' suitability to be assessed before determining how to convert them, while the report does not announce a final agreement between the parties. Nvidia estimated that the sites could collectively provide about 1 gigawatt of computing capacity. That figure places the project among efforts to secure sites and power for running AI workloads.

The report said the estimated capacity could accommodate more than 2,200 racks of Supermicro Vera Rubin NVL72 systems. Each of these racks contains 72 Rubin graphics processing units and 36 Vera central processing units, according to the published details. These specifications link the capacity estimate to a specific class of computing equipment, but do not mean the racks have been ordered or installed. The facilities would need equipment beyond the servers themselves, including cooling systems and supporting infrastructure. Operating them would also require permits and approvals from local authorities.

Using existing buildings could help address some of the regulatory delays and opposition that may accompany building a new data center from scratch, according to the report. But reusing the facilities would not exempt the project from local approvals or eliminate the need for cooling equipment and supporting infrastructure. The Information reported, via Investing.com, that the potential plan could extend across 20 U.S. states and that Brightspeed buildings could provide 1 gigawatt of power capacity for Nvidia servers. That potential reach adds a geographic dimension to the proposal, while implementation details remain subject to assessment and approvals. Brightspeed acquired Lumen's local telephone business in 2022 across 20 states for a disclosed $7.5 billion, according to Lumen's filing with the U.S. Securities and Exchange Commission.

The report discussed the possibility of the small sites working together as an inference network to run existing AI models, rather than relying on a single large facility. This concept depends on linking distributed sites, while the report did not cite a final decision on adopting this use for the buildings. The proposal comes as data center activity is a major driver of Nvidia's business: the company said revenue from the segment reached a record $62.3 billion in the fourth quarter of its fiscal 2026, up 75% from the same period a year earlier. These figures highlight the scale of the activity supporting the company's expansion in AI computing and infrastructure. Converting Brightspeed buildings into operating sites remains contingent on the required technical equipment and approvals.

In premarket trading on November 6, Nvidia shares rose more than 4%, according to the headline of a TradingKey report, while Reuters reported a 4.2% gain over the same period. The Associated Press said the stock rose 5.6% on Friday, recovering part of two earlier losses of 9.3% and 3.2% in the November 5 and 4 sessions, respectively. The stock closed at $181.6 on November 5, while Apollo shares closed at $117.27, according to EL7 data. The Associated Press linked broader industry concerns to the possibility that local election results could slow data center expansion, particularly in Texas, and to residents' sensitivity to rising electricity bills associated with the facilities. Nvidia is scheduled to report third-quarter fiscal 2027 results after the market closes on November 17, according to Kiplinger.