Nvidia Approaches Apollo to Retrofit Brightspeed Telecom Buildings Into AI Data Centers Across 20 States

Nvidia is pursuing a plan to convert existing telephone company buildings into a network of small AI data centers, approaching Apollo Global Management to help finance and facilitate the effort, according to a report from The Information. The proposal targets buildings owned by Brightspeed, an Apollo-backed broadband provider that is reportedly nearing bankruptcy, which operates more than 130 sites originally built for voice and data traffic.

The Brightspeed portfolio is said to carry roughly 1 gigawatt of available electrical capacity, an asset that makes the buildings attractive since they could accommodate data center workloads without requiring major new power infrastructure. Nvidia submitted a written proposal to Brightspeed on Wednesday and has requested additional data along with site visits. The network could span up to 20 US states.

The strategy carries a secondary motive: sidestepping growing local opposition to new data center construction. The approach gained urgency following Tuesday's midterm elections, in which Democratic candidates in states including Texas called for moratoriums on new facilities. By retrofitting existing buildings rather than breaking ground on new ones, Nvidia could accelerate deployment while avoiding permitting and community resistance battles. The plan may also incorporate technology from Groq, the AI startup whose technology Nvidia licensed last year. Industry observers note that older telecom buildings can unlock underutilized power but may carry higher operating costs due to aging equipment.