Nvidia reportedly signs $50 billion Texas data center lease
According to multiple reports, chip giant Nvidia has signed a long-term lease agreement with data center operator Hut 8 to rent its 1 GW AI data center park in Beacon Point, Texas. The basic contract value of the transaction is US$19.6 billion (15-year lease term). If all renewal options are exercised, the total value of the 30-year lease term can reach up to approximately US$50 billion. The park is a key project in Hut 8's transformation of AI infrastructure. It has been designed according to NVIDIA's DSX AI factory reference architecture and is specifically adapted to large-scale AI training and operations. Hut 8 has not previously disclosed the identity of the tenants, describing them only as "existing investment-grade customers." The report pointed out that the customer is Nvidia. NVIDIA plans to deploy hundreds of thousands of GPUs in the park. After completion, Nvidia may sublease part of the capacity to its partners—these companies purchase Nvidia GPUs and provide external AI cloud computing services. This move is seen as a signal of NVIDIA's strategic change: extending from chip sellers to directly controlling the infrastructure of chip operation, strengthening control of the AI supply chain. A spokesperson for Nvidia did not directly confirm the report, but said that it is "working with ecosystem partners to accelerate the deployment of efficient AI infrastructure through the DSX AI factory architecture." The analysis pointed out that the lease can reduce Hut 8's financing costs. Hut 8 has previously issued approximately US$4.3 billion in corporate bonds based on the long-term lease at an annual interest rate of 6.129%.