According to foreign media reports, NVIDIA (NVDA.US) has signed a 15-year lease commitment for a data center in Texas, with a contract value of approximately $19.6 billion; if renewal options are exercised, the total value over a 30-year term could reach as high as $50 billion.
According to foreign media reports, $NVIDIA (NVDA.US)$ has signed a 15-year lease commitment for a data center in Texas, with a contract value of approximately $19.6 billion; if renewal options are exercised, the total value over a 30-year lease term could reach as high as $50 billion.
The facility is being developed by Hut 8, with a planned capacity of 1 gigawatt (GW), and will deploy hundreds of thousands of NVIDIA graphics processing units (GPUs), with secured power supply arrangements already in place.
Hut 8 disclosed last week that the Beacon Point campus in Nueces County, Texas, carries a contract value of USD 19.6 billion over the initial 15-year lease term (including an annual rent escalation clause of 3.0%); if the customer exercises all renewal options, the total value over 30 years would rise to USD 50.2 billion. At the time, Hut 8 did not reveal the tenant’s identity, describing it only as an 'existing investment-grade client' that will install computing equipment at the campus to support large-scale AI training and operations.
Foreign media have now confirmed that the tenant is NVIDIA. Originally a Bitcoin miner, Hut 8 has since pivoted to developing AI-focused data centers. The campus was designed according to NVIDIA’s DSX AI factory reference architecture, specifically tailored for gigawatt-scale AI infrastructure. Hut 8 announced on July 20 that the Beacon Point campus has been fully leased on a commercial basis.
This lease agreement marks a significant strategic shift for NVIDIA—from being solely a chip vendor to directly controlling the physical infrastructure where its chips operate.
A source familiar with NVIDIA’s strategy stated, 'The scale of this commitment reflects the structural demand for AI computing we are seeing across our customer base.' A NVIDIA spokesperson responded that the company is 'working with ecosystem partners to accelerate the deployment of efficient AI infrastructure through the DSX AI factory architecture.'
According to the report, once the project is completed, NVIDIA may sublease portions of the data center’s capacity to its 'Neocloud' partners—those who purchase NVIDIA GPUs and offer AI cloud computing services externally.
Separately, according to related reports, the AI chip giant is reportedly in negotiations to provide approximately USD 250 billion in financial support to OpenAI as part of the latter’s large-scale data center project in Ohio.