Nvidia Reportedly Leases Hut 8 Texas AI Campus
Reuters reported on July 28 that Nvidia had signed leases for Hut 8's Beacon Point data center campus in Texas, based on a Financial Times report. Hut 8 disclosed last week that the 1-gigawatt campus has a base-term contract value extending over 15 years, rising to as much as $50.2 billion if renewal options are exercised. Nvidia did not confirm or deny the report.
Reuters reported on July 28 that Nvidia is the previously undisclosed tenant for Hut 8's Beacon Point data center campus in Nueces County, Texas, citing a Financial Times report based on five people familiar with the arrangement. The potential transaction has a maximum value of $50.2 billion if all renewal options are exercised, according to Hut 8 disclosures described by Reuters and The Next Web.
Hut 8 had identified the customer only as an "existing investment-grade customer" that would install computing equipment supporting large-scale AI training and operations, Reuters reported. Hut 8 did not name the tenant in its earlier announcement. Reuters said Nvidia had not confirmed the Financial Times report, while Hut 8 did not respond to Reuters' request for comment outside business hours.
A large lease, but not a $50 billion committed base term
The $50.2 billion figure is contingent rather than the initial contracted amount. The Next Web reported that Hut 8 first disclosed a 352-megawatt lease worth $9.8 billion over more than 15 years, then announced a second 352-megawatt lease on July 20. Together, the two leases cover 704 megawatts.
According to The Next Web, three five-year renewal options apply to each lease. Exercising every option would raise total rent to the stated $50.2 billion maximum; without those extensions, the base-term value is lower. That distinction matters when comparing AI infrastructure commitments, since announced maximum contract values can combine executed lease terms with optional future extensions.
Campus capacity and DSX architecture
The Beacon Point campus occupies 525 acres and has 1 gigawatt of utility capacity secured through an interconnection agreement with AEP Texas, The Next Web reported. Hut 8 expects to energize the site in the first quarter of 2027 and add a Phase II data hall in the second quarter of 2028, according to that report.
The campus is being built to Nvidia's DSX reference architecture for gigawatt-scale AI factories, The Next Web reported. In a statement to Reuters, an Nvidia spokesperson said, "Nvidia is working with ecosystem partners to accelerate the deployment of efficient AI infrastructure through the DSX AI factory architecture," without confirming or denying the Beacon Point tenancy. Reuters described DSX as Nvidia's full-stack architecture for designing, building, and operating large-scale AI data centers with partner equipment.
The Financial Times also reported that Nvidia could sublease capacity to "neocloud" partners that purchase Nvidia GPUs and sell AI cloud computing, according to Reuters. That potential structure remains unconfirmed by Nvidia.
For AI infrastructure practitioners, the reported arrangement illustrates how gigawatt-scale campuses can be paired with long-duration power access, specialized data-center designs, and GPU supply ecosystems. Comparable projects can concentrate significant capacity behind a small number of counterparties, while their headline economic value may depend heavily on extension clauses and phased construction milestones.
Key Points
- 1Reuters, citing the Financial Times, identifies Nvidia as Hut 8's previously unnamed Beacon Point tenant, though Nvidia has not confirmed the report.
- 2The reported $50.2 billion value includes renewal options; the disclosed initial leases cover 704 megawatts across two agreements extending over more than 15 years.
- 3The reported project combines gigawatt-scale power, specialized data-center architecture, and a potential neocloud ecosystem, creating concentrated infrastructure dependencies.
Scoring Rationale
The reported tenant relationship concerns one of the largest disclosed AI data-center lease structures and up to 1 gigawatt of capacity. It is highly relevant to GPU cloud supply and AI factory buildouts, although the Nvidia tenancy remains unconfirmed by the company and the $50.2 billion figure depends on renewal options.
Sources
Public references used for this report.
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