NVIDIA is reportedly the previously undisclosed tenant behind long-term leases at Hut 8’s Beacon Point AI data center campus in Texas, according to the Financial Times.
The two 15-year leases have a combined base-term value of $19.6 billion. Three five-year renewal options for each lease could extend the relationship to 30 years and increase the total contract value to up to $50.2 billion.
Hut 8 previously identified the customer only as an existing high-investment-grade company. NVIDIA did not confirm or deny that it is the tenant, and Reuters said it could not independently verify the Financial Times report.
The agreement covers 704 megawatts of contracted information technology capacity across two 352-megawatt phases at Hut 8’s one-gigawatt Beacon Point campus in Nueces County, Texas.
Hut 8 fully commercialized the campus in July after signing the second $9.8 billion lease with the same tenant. The site has secured 1,000 megawatts of utility capacity through an interconnection agreement with AEP Texas.
The facility is expected to contain hundreds of thousands of NVIDIA graphics processing units and support large-scale AI training and inference workloads.
Hut 8 is designing the data center around NVIDIA’s DSX reference architecture, which coordinates computing, networking, power and cooling infrastructure for large AI factories.
Initial energization is expected during the first quarter of 2027. The first data halls associated with the second phase are scheduled for delivery in the second quarter of 2028.
The Financial Times reported that NVIDIA could sublease capacity to neocloud companies that purchase its GPUs and provide AI computing services to customers.
This arrangement would extend NVIDIA’s involvement beyond supplying processors. The company would use its balance sheet to secure scarce power and data center capacity, ensure deployment of its hardware, and potentially make infrastructure available to customers that cannot independently support a project of this scale.
NVIDIA’s participation reportedly helped Hut 8 obtain approximately $4.3 billion in financing for the first phase. Investment-grade lease commitments can make infrastructure projects more attractive to lenders because they provide long-term contracted revenue.
The structure may also intensify concerns about circular financing within the AI market. NVIDIA would be supporting infrastructure that uses its own processors and could then provide that capacity to companies purchasing additional NVIDIA equipment.
Supporters of these arrangements argue that they help overcome shortages of power, land and financing that would otherwise delay AI infrastructure. Critics may question how much demand is being enabled or financially supported by the same companies selling the underlying technology.
Hut 8 estimates that the first two Beacon Point phases will involve approximately $17 billion in combined investment and support about 1,900 construction jobs and 230 permanent operating positions.
