- Nvidia wants to convert more than 130 existing telecom properties to data centers
- Brightspeed's struggling business could become central to Nvidia's expansion strategy
- The proposed network could extend across as many as 20 states
Nvidia is exploring an unusual route into the AI infrastructure market, reportedly considering older telephone facilities as locations for compact regional computing operations.
The proposal involves Apollo Global Management and Brightspeed, a broadband operator whose property portfolio could provide sites across as many as 20 American states.
Repurposing telecom buildings could give Nvidia access to existing infrastructure without requiring every facility to be built from an empty nearby plot of land.
Nvidia targets alternative expansion route
Reports from The Information claim Nvidia has contacted Apollo about converting more than 130 Brightspeed properties into smaller facilities dedicated to running artificial intelligence applications.
Brightspeed is backed by Apollo and reportedly close to bankruptcy, although the proposed arrangement and its commercial terms have not been publicly confirmed.
Reports indicate that the properties collectively offer approximately 1 gigawatt of electrical capacity, potentially supporting substantial investment in Nvidia's next-generation server systems for future deployments.
Nvidia reportedly recently sent Brightspeed a written proposal and requested further information, alongside opportunities to inspect locations under consideration for possible conversion directly.
Amid concerns about data center expansion, there have been political calls for temporary restrictions from Democratic candidates in states including Texas.
Retrofitting existing properties may face fewer planning obstacles than entirely new developments, although local approvals would still be needed for cooling and other upgrades.
Nvidia has reportedly discussed beginning renovations with suppliers during the first quarter of 2027, using systems built around its upcoming Vera Rubin platform.
Unlike enormous training campuses, Nvidia reportedly describes the proposed locations as an inference network, intended to operate models that have already completed their initial training.
That distinction could make smaller sites useful to cloud operators and artificial intelligence developers needing computing capacity closer to customers and existing networks.
Nvidia's smaller AI facilities still face commercial and operational questions
Potential users could include OpenAI, Anthropic and SpaceX, although the report does not establish whether discussions about this particular network have taken place.
It also remains uncertain how many Brightspeed properties would be converted, who would own the equipment, or which customers would ultimately lease computing capacity.
Zac Smith, Datum's chief executive, told The Information that older telecom buildings can “unlock underutilized power,” although aging equipment may raise operating costs.
Smith also cautioned that older facilities may cost more to operate because their equipment can require additional maintenance and replacement during operation.
The reported discussions follow a decline of more than 9% in Nvidia shares during Thursday's trading session, marking their steepest daily drop since January 2025.
The drop occurred during a wider retreat in chip stocks, as investors assessed regulatory uncertainty surrounding the pace and scale of new computing developments.
Nvidia shares were reportedly down 3% year to date, despite renewed retail interest online that pushed Stocktwits sentiment from neutral into bullish territory
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