Fiber optics manufacturer Corning is planning to build three plants in North Carolina and Texas to supply equipment to data centers that use Nvidia semiconductors for artificial intelligence.
Corning's new manufacturing facilities will help the 175-year-old company expand its U.S.-based production of optical connectivity equipment tenfold, according to a release. The company is also expanding its U.S. glass fiber production by 50%. It did not identify the specific locations where it will expand or construct new facilities.
A Corning spokesperson declined to identify the locations of the new facilities. Nvidia did not respond to CoStar News' requests for comment.
Data center developers and manufacturers of AI-enabled computer chips and related equipment are racing to meet soaring demand for AI products and services. Equipment spending in the United States grew 4% in the first three months of 2026 compared to the fourth quarter of 2025, according to the Bureau of Economic Analysis. The growth is due to the AI infrastructure buildout, according to Christine Cooper, chief U.S. economist at CoStar.
Nvidia, based in Santa Clara, California, agreed to invest up to $3.2 billion in Corning as part of the agreement through two warrants that allow Nvidia to buy up to 18 million shares of Corning stock, according to a regulatory filing. One warrant includes a $500 million contribution to the purchase price from Corning.
Corning's stock climbed 113% to $189.38 per share this year through the close of trading on May 5. Investors are optimistic that demand for Corning's fiber-optics products will remain high among AI developers, according to Bloomberg. Corning, based in the upstate New York town of the same name, announced the Nvidia partnership Wednesday morning during an investor presentation at the New York Stock Exchange.
Nvidia and Corning are "inventing the future of computing with advanced optical technologies — building the foundation for AI infrastructure where intelligence moves at the speed of light," Nvidia CEO Jensen Huang said in the news release.
The Nvidia agreement is the second major AI-related contract this year for Corning. In January, Meta agreed to pay Corning $6 billion to supply optical fibers and cables for its data centers. Corning is upgrading its manufacturing facility in Hickory, North Carolina, to supply Meta.
Corning also operates manufacturing and development facilities in Winston-Salem, Charlotte, Durham and Wilmington in North Carolina. In Texas, Corning maintains a 52,000-square-foot office in Austin.