Nvidia Aims for 8 GW Data Center Capacity by 2026 with New Revenue Model

Nvidia is on track to achieve approximately 8 gigawatts of installed data center capacity by the end of 2026, as revealed by CFO Colette Kress. This ambitious target is supported by a network of specialized AI cloud partners, known as 'neocloud' partners, which include notable companies like CoreWeave and Nebius.

CoreWeave has reported an active power capacity of 1.5 GW as of Q2 2026, marking a significant increase of around 500 megawatts from the previous quarter. Meanwhile, Nebius is also focusing on expanding its contracted power capacity by the year's end. OpenAI is involved in a separate project for a data center campus in Ohio, which is designed to support up to 8 GW of IT capacity independently.

Nvidia's new financing model, introduced in July 2026, aims to shift the company's revenue mix from one-time GPU sales to a recurring income model based on ongoing usage of its products in partner data centers. This includes providing credit support to help partners finance their infrastructure buildouts. Nvidia has already secured deals worth $6.3 billion with CoreWeave alone.

Additionally, Nvidia has signed agreements with Apollo and BlackRock to raise over $500 billion in third-party capital for AI infrastructure projects, further solidifying its role as a key player in this expanding market.

However, this strategy does come with risks. Nvidia's substantial financial commitments to a limited number of fast-growing cloud operators could pose challenges if demand for AI workloads stabilizes or if any major partner encounters difficulties.